Blocks & Lots

Why Now is the Time to Buy an NYC Condo

Yes, NYC has been put to the test: Covid-19, ‘anarchist city‘, record unemployment, retail apocalypse, office apocalypse, MTA bailout, “NYC is dead forever“, people moving out, and the list goes on.

And then this happened: “Pfizer’s Early Data Shows Vaccine Is More Than 90% Effective

In reaction, NYC real estate stocks (here and here) shoot up over 30% and Zoom drops 16% in one day.

This tells us that Wall Street believes that NYC will rebound when there is a vaccine.

(Update: As more announcements come, the prices of these stocks continue to rise)

According to Marketproof analysis, many NYC condo buyers believe this too — and they didn’t wait for news of a vaccine. Look at this chart for contracts signed for NYC condos, which shows a dip in activity from April thru June. Then in June, sales started picking back up again. Now the volume is where it was before the pandemic began.

Click to expand chart

Does an increase in volume mean prices going up?

Not yet.

Prices peaked in June 2018 and have been declining since. (Further reading: Why the SALT deduction is important for New Yorkers)

Covid-19 is simply continuing a trend that was already in motion.

Click to expand chart

One reason prices are declining is because the mix of what was built does not align with what people want, according to Marketproof Data. In addition, there are simply more condos for sale than there are buyers right now.

So, if you are a buyer, now is the time to shop for a new condo. Depending on your appetite for risk, there are different strategies you can use.

Using Marketproof New Development

View more than 11K unsold condos currently available in Manhattan, Brooklyn, and Queens using Marketproof New Development. We have 90% more new condos than other popular listing sites. Use our market reports, analysis, and content to help you get the best deal.

Sign up for a 7-day free trial and then pay only $14.99/mo. Cancel anytime with no hassle.

Top photo courtesy of Front and York.