In Manhattan, the real estate market suffered badly from the corona pandemic in 2020 – but now sales are rising again rapidly: New York is making a comeback.
Since the corona virus broke out in the USA last spring, the economy in the United States has suffered tremendously – especially in New York, the city that was temporarily cordoned off as a hot spot. Now the Manhattan Elliman Report February 2021 says: “The newly concluded sales contracts are for the third month in a row […] compared to the previous year. ”Manhattan, the borough hit hardest by the real estate slump among New York’s boroughs, seems to be catching up again.
73 percent more sales contracts compared to the previous year
According to the report, the number of newly concluded sales contracts was 73 percent above the previous year’s level in February alone. Garrett Derderian of the New York brokerage firm Serhant told the news portal CNBC that a total of 2,472 sales contracts were signed in Manhattan in the two months of January and February 2021. According to the expert, this is a high since the record high in 2015. “This is a remarkable recovery from 2020 and a trend that we have seen since Biden’s election in November and the announcement of the first viable vaccines,” said Derderian.
By 2016, explains Die WELT, prices in New York had risen enormously and then fell again due to various crises in the BRICS countries – the corona virus and low interest rates had finally finished off the real estate market.
Up to 20 percent off sale items in Manhattan
Because of this, prices have been at a level for a long time that is partly similar to the level after the financial crisis in 2009 and was up to 20 percent lower year-on-year – not least because of the flight of many New Yorkers to more rural regions associated with the pandemic. This is confirmed by Jonathan Miller, CEO of Miller Samuel, CNBC. According to him, the average discount on properties for sale in Manhattan is around ten percent.
However, the number of vacant properties has fallen by a full 20 percent since autumn (9,400 properties) – which makes the New York brokers optimistic: Sebastian Steinau from the brokerage company Corcoran is quoted by DIE WELT as follows: “It is going as well as rarely before […] a golden age has dawned. ”He reckons that there will be“ no stopping ”as soon as the US borders open properly again and the market is more accessible again for international buyers.
The time window for high discounts could close again soon
The US economist Scott Galloway also predicts to DIE WELT: “Our metropolises will experience a comeback, especially New York.” The low interest rates and the ongoing discounts make real estate in Manhattan very interesting for buyers The end of the curfew is in sight and the prices are affordable for the first time, especially for younger buyers. Brokers surveyed by CNBC predict, however, that the era of high discounts will soon end and prices will rise again.
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