Here’s how COVID-19 has overcome the traditional spring market in New York City:
It’s no secret that this past year has been less than traditional in more ways than one. But the eccentricities between a typical real estate market and its current state in New York City are still as prevalent as ever, with one example being the elimination of the traditional spring market due to the COVID-19 pandemic.
“I believe the main difference of this spring market is that it started in winter,” said Michael Rider, Sales Manager at Platinum Properties. “We saw a great deal of movement in the sales market during the last two months which are traditionally slow. The number of contracts and closings in the first part of this year resemble the numbers from a “traditional” spring market. The trends seem to indicate that we will continue with the steady ride for the foreseeable future.”
In an average year, April through June is the hottest time to purchase or rent a home. This is usually because sellers rush to put their homes on the market knowing that there will be more prospective buyers, and as a result buyers have access to more options. However, this year, the first quarter in New York City has been uncharacteristically thriving with activity. According to UrbanDigs, the number of sales during the first months of 2021 is up nearly 50% from the same time last year.
This trend is anticipated to continue throughout the spring, summer, and maybe even fall.
“Taking into consideration the strength of the current financial markets, as well as what appears to be a rise in confidence that we are seeing the end to the COVID pandemic, I think that we can expect this rise in sales to continue through the spring and summer,” Rider said.
“I think that an effective vaccine roll-out that will let us achieve herd immunity will be the single biggest determining factor [of the market] over the next six-to-nine months,” Rider said. “As the number of those vaccinated rise and the numbers of infections fall, people will still need to exercise caution, but will be able to get back to activities and events that were part of their life pre-COVID.”
The long-term changes in the spring market are yet to be determined. For this year, the low mortgage rates have allowed buyers to take advantage of deals earlier than previously expected. With COVID-19 rates anticipating a decline and activity in the city appearing hopeful, it doesn’t look like it should take too much longer for life to be restored to the Big Apple — but this time with some new faces!