Who Actually Cares if it’s a Buyer’s Market or a Seller’s Market?
In the 32 years that I’ve been a broker in New York City, I have seen many market cycles. History shows that events of magnitude like September 11th, the Great Financial Crisis of 2008, and now Covid-19 pose challenges when navigating New York real estate.
Buying and selling in these unpredictable times may require one to quiet the noise of the media. Is it a “Buyer’s Market” or a “Seller’s Market”? Who actually cares? Supply and demand are the big factors that determine absorption. In September 2020, NYC had about 16.3 months of inventory; today, we have about 6 months. This could be a sign we are trending towards a normalized market.
Simple advice for sellers: Price is most important. An experienced, data-driven, and honest real estate agent can help. Don’t give in to the greed of agents touting prices of yesterday only to get your home exclusive. We can’t make up the market! Price aggressively, but fairly. Right now, a seller can be bold, price low and allow the efficiency of the market to find the true value. Reflecting on the last two months with $70 million in deals, almost every property had more than one offer, with some capturing multiple offers several hundreds of thousands over the asking price.
For buyers: Please don’t wait. Get out there, look and buy – but find a patient, knowledgeable and well-respected real estate agent to educate you. Apartments are not like a stock or your favorite dress; they are homes that, for better or worse, elicit a lot of emotion. This is why real estate appreciates faster than it deflates. Get educated, lock in a cheap mortgage, and stretch to buy as much as possible. Focus on location, but don’t expect a steal.
On a personal note, Covid-19 has served as a reminder that life is too short. You only get this moment once and you should enjoy every day. Cherish your family and friends. Work hard daily and enjoy life. If you want a new home, buy it. One of the most enjoyable and fulfilling things in life is having a place that makes you feel safe. NYC has afforded me the opportunity to help people across the globe find their precious homes. There is no greater city. She remains the financial and cultural capital of the world. Our resilience seems to be a way of life for us New Yorkers!
