Q: How has the New York market evolved recently?
A: As the summer has wound down and fall gets under way, the New York Real Estate market has begun to percolate. Despite the uncertainty brought on by the pandemic, we are seeing apartment sales transacting, albeit on a case by case basis. The market has not yet found the momentum or efficiency of the pre-Covid days but in the past six weeks, our team has had multiple buyers sign contracts for Upper East Side cooperatives and we have a signed contract on our duplex listing. Additionally, we closed on the sale of an off-market Park Avenue listing where we represented the sellers. The closing price was 7% above the asking price. The common denominator among all of the transactions occurring is that they are priced to reflect current market conditions.
Q: How long do you expect this buyers’ market to persist? A: A crystal ball would be helpful! In all seriousness though, we do expect the buyers’ market will continue for some time. Exactly how long is hard to gauge given it depends on a number of factors, including the Presidential election and whether there is a second wave of the virus that requires renewed protocols. While the timing is unclear, we are confident that New York City is a dynamic and resilient town that will fully recover from a very challenging 2020.
Q: What advice do you have for sellers?
A: The key component for selling under the current market conditions is pricing. A realistic and attractive asking price that gets buyers’ attention is a must. The market as a whole has had an increase in activity this fall and that is yielding signed contracts; proving that buyers are present and interested. That said, they are taking their time and are keenly focused on price and value. More than ever, it is critical to price correctly from the beginning of a listing, rather than reduce along the way. As a seller, this strategy puts you in a stronger position to negotiate, having spent fewer days on the market and ideally without several price reductions.