Q: Tell me about the New York City market.
A: The New York City real estate market has once again demonstrated its enduring resiliency by bouncing back much more strongly and quickly than most industry pundits expected. Manhattan pending contracts as of June were up 64 percent higher than pre-pandemic totals in June 2019. While the market is charging toward a robust recovery, I remain bullish on two sectors where it is not too late for buyers to find a solid deal: select new-development projects and unrenovated co-ops. Foreign buyers are still absent from the new-development buyer pool, for the most part, and it’s a sector that continues to grapple with excess inventory.
Q: Why is the luxury sector doing particularly well?
A: Spurred by savvy investors and smart buyers looking to level up while taking advantage of once-in-a-lifetime deals, the luxury market has seen record-breaking activity this year. At the beginning of July, the Olshan Luxury Market Report has tracked its 22nd straight week with more than 30 signed for properties priced at $4M and above. Year to date, 2021 has racked up 979 such contracts totaling $8.28 billion. That’s 232 percent more luxury contracts than in the same period in 2020 and 76 percent more than in 2019.
Q: What do you expect from the market in the fall?
A: I believe our persistent return to normalcy will continue to spur market activity. The rental market is also making a solid recovery, and increased prices there will help propel sales further. While many expected high-density urban living to lose its appeal for the foreseeable future, the arrival of effective vaccines has proved otherwise.
Q: What advice do you have for buyers and sellers?
A: I encourage buyers and sellers to connect with an agent who is experienced in delivering on their goals. Sellers need a professional who is adept at pricing for realistic market conditions, and buyers require an agent who can spot deals in a landscape that’s changing daily.