NYC Real Estate Market Update - COVID19 Episode 1 - March 30, 2020

First, I hope you all are safe and healthy.

I would not be the leader that I am in this industry if it wasn't for the information that I have to share with you. Every Monday I will be posting market updates. I urge you to SUBSCRIBE TO MY YOUTUBE channel for more videos. Please WATCH THE VIDEO BELOW. Below is a summary.

Q1 2020 at a glance

We started out this quarter incredibly strong. New York City had seen things slow down over the last two years, 2018 and 2019, and finally we were starting to see the light in January and February of 2020. However, we all know what happened in early March. And with that, new systems went into play, and it is definitely impacting the real estate market. As of a few days ago, the real estate brokers were deemed non-essential (this is changing day to day, but in NYC we are not essential). What that means, is that we are no longer able to show property in person.

Is this like the Recession of 2008?

When we compare this crisis to others, what we do know is that it is not being caused by the housing market. In many markets, housing is at an all time low. There's way too much demand and not enough inventory. Compared to 2008, we went into that recession because of the housing market.

The system is still moving, with changes

Our systems are changing day by day. I recently read that appraisers are now being told that they could appraise by doing a drive by, or by going online and looking at photos. A lot of attorneys are doing closing via mail with nobody actually sitting at the closing table. In fact, even board interviews are starting to happen via Zoom or the phone. I recently heard of a Park Avenue building that did an interview over Skype before a package was even submitted. I truly do believe that once we get out of this, only those that are prepared with their finances, and with their resources, and working with a really great team, will come out of this ahead and be able to take advantage of whatever the market might be.

My solution

We can do listing presentation via Zoom or Facetime. If you're thinking about buying, let's discuss the current systems and processes and what might happen down the road. And for those of you who are renting, we need to come up with a plan. You need to know what your rights are as a tenant, whether you can be evicted, when you should renew, how much notice you need to give, how much you might be able to negotiate off your lease. These are all things that we really should be talking about.

What you can do now

Most economists are predicting a V curve, meaning we’ll nose dive to the bottom, and then as soon as everybody's healthy, the doors will open up. And just like on black Friday, people will charge through the doors. They'll be getting out there, looking for new inventory, looking to transact. So if you're thinking about buying, if you're thinking about selling, let's talk about it now. Let's talk about what's happening, ways that we could keep you safe. Perhaps ways that we could get you into apartments. If you're curious, if you've maybe seen something online that came off the market, there are still ways of transacting without physically meeting and without physically seeing the home.

My thought is for you, and your safety, and your health. But I also am very aware of my responsibility as a real estate broker and a leader in this industry, and the fact that housing is one of the three most essential human needs. Please let me know if you have questions.