Media Headlines vs. Hard Data

The headlines as of late seem to be centered around people leaving New York; but what you may not be hearing is that more New Yorkers today, compared to last year, are buying homes in the city they love.

Sure, there are some residents who fled the city when the pandemic hit, but many are returning back in September as the school year begins and more are expected to return in January. This means we should expect to see an increase in activity and ultimately, recovery, in a phased approach over the next six months.

Meanwhile, the margins between asking price and accepted offers have been slim, especially in Brooklyn which reported a 2% negotiability rate. Sellers in Manhattan have been accepting initial bids 5.65% below asking on average. These figures are based on data collected from survey responses administered by Fritz Frigan, Executive Director of Sales at Halstead for activity between July 1-August 15.

Given that the negotiability rate in Manhattan was more than 11% (according to Hasltead Chief Economist, Greg Heym) in the first few months of shut down, it’s clear that sellers have since then adjusted their listing prices to market. We’re also finding the market is continuing to shift in response to increased buyer demand. According to Wells Fargo Loan Officers, market activity has definitely picked up.

It will be interesting to see how September unfolds after a new wave of residents return home to the city. As always, please reach out with any questions.  

Warm regards,
Serjik (Serj)
Lic. Assoc. R.E. Broker
t.   c. 212.796.6110
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