What A Rising Coronavirus Infection Rate Could Mean for NYC Real Estate
NYC’s daily positivity rate topped 3% for the first time since June. The 3.25% positivity rate has been driven by rising cases in nine neighborhoods in the boroughs of Brooklyn and Queens. The seven-day rolling average is currently at 1.93%. If that number were to go above 2%, city officials have claimed indoor dining would be shut down and they would begin to roll back the re-opening.
A rollback of the re-opening, forcing the city’s economy to shut down again would be devastating to the city’s real estate market and businesses. Markets don’t like uncertainty. The NYC real estate market is no exception.
Inventory has steadily increased with 4 weeks in a row of 500+ apartments coming onto the market. Total inventory in Manhattan now sits at 9,137 approaching an all-time high. If the market were to shut down again for any period of time this would certainly prohibit the market's ability to absorb this supply and as a result, put tremendous downward pressure on prices.
Although contract activity has remained somewhat steady and been relatively encouraging all things considered since the market has re-opened, pricing has definitely been affected. According to Urban Digs, of the 473 deals that went into contact and have closed after March 23rd, the blended discount average off the listing price for coops has been 8.9%, for condos 10.2%, and for townhouses 17.1%.
If the market were to have to shut down again these discounts would definitely need to increase significantly in order to match the current volume of deals. For sellers, this means listen to offers, and if you need or definitely want to sell be negotiable. For buyers, take your time and let the market come to you.