New York Residential Real Estate in the Fall
Rental & Sales Activity Will be Up
Is the New York City real estate market back to normal?
It’s a subject up for debate, with sources like the Times (yes) and Bloomberg (no) in disagreement. With the Delta variant of COVID-19 driving more change every day in behaviors and regulations in public spaces and workplaces alike, and most employers not settling on policies for vaccination requirements for in-person work or for the degree of remote work they will allow as of yet, the market for city living is still very much in flux.
The Rental Market is Hot
According to some, the immediate future for the fall rental market is clear: People who fled the city during the pandemic are coming back in droves, and they’re looking for rentals. “They may have had an okay winter outside the city, but as long as restaurants and entertainment remain open this year in the city, there will be a Fear Of Missing Out (FOMO) effect,” said Benjamin Dixon, the co-founder of The Mackay Dixon Team at Douglas Elliman. “In the springtime, many will become buyers as opposed to remaining renters. But given the fact that the process is so much faster to rent than to buy, maybe they’re a little bit behind in their planning and just need a place to land when they come back to work. Also, New York got more affordable, so there are also new people coming in.”
So, rentals are moving quickly, and that dynamic is even affecting the selling market. “In the past, when we had sale listings on market for more than 30 days, we often started getting questions about whether the owner would consider renting. We generally get one or two per listing, but now we’re getting them every week,” said Dixon, whose team has sold more than a billion dollars in residential real estate in both New York City and the Hamptons.
Buyers Should Start Looking Now
Those not behind in their planning should make a move this month, to get the best deal. “We’re going to have a very busy fall,” said Dixon, who believes that “a lot of homes will come onto the market at the end of August and the first couple weeks of September.”
“So, if a buyer can find something that they like right now — even though we are heading into the height of the vacation season — they should jump on it,” he continued. “The negotiability is going to be better right now, and the competition is going to be less. That can be a great equation for a buyer.”
In another post-COVID shift, buyers need to know that open houses are now rare. “Pre-COVID, 1 in 10 were by appointment only, and now they’re 9 out of 10,” said Dixon. “That means you have to be more proactive and plan going to see homes, whether it be for private showings or by making an appointment at an open house. The days of sitting around on a Sunday at brunch, scrolling through the listings and deciding which homes you’re going to stop by are over for the time being.”
Sellers Rebound
New York was in a slump in 2018 and 2019. The city was just starting to come out of that when the pandemic hit and pulled the rug out from under the market. At that point, buyers were asking for — and receiving — a “COVID discount.” “Some of those discounts are still available,” said Dixon, “but are getting harder to come by. Sellers are continuing to see a very healthy market. September is going to be the best time to list properties.”
The Future
It’s true that no one — especially during these unusual times — can predict exactly what will happen over the next few months. Regardless, real estate agents are seeing a significant uptick in rentals, so renters need to get going if they want to secure a lease before the September rush starts. Dixon underscored that buyers looking for maximum negotiability should act now. As for sellers, “the fall buying season will be brisk,” said Dixon. “Those who price right will get a lot of attention.”
