Borders Re-Open and SALT Cap Repeal Talks Intensify as NYC Real Estate Surges into Winter

Supply continues to tighten as new listings decrease and contract signings steadily increase week over week. October saw an increase of 32.3 percent over September in contract signings and November is continuing the positive momentum.

As borders re-open for foreigners, and talk of the Salt Cap repeal intensify, the high end of the market shows no signs of slowing down and should only increase in transaction volume.

Inflation and a bubbling equity market that is overdue for a correction are leaving many high net worth individuals with dwindling avenues to store their cash- something the NYC luxury real estate market prides itself on.

Competition sub $2M remains fierce, with renovated and turnkey product demanding a premium due to limited supply. Still, the market is not moving at as fast a pace as the spring.

While the market has slowed down since the spring months, we are beginning to see it begin to ramp up again.

Equity markets are once again at all-time highs providing liquidity to investors and interest rates still remain near historic lows.

Transaction volume remains high for this time of year and will continue throughout the holidays as the coronavirus has slowly lost its dominating grip on the news cycle.

The re-opening of the borders and the increased likelihood of the SALT Cap repeal cannot be overstated as driving factors to maintain this level of activity throughout the winter months.

As always, however, supply and demand is the determining factor, and right now- demand still far outpaces supply and the gap will continue to widen and not tighten as the next quarter unfolds.