New York City real estate business shows signs of recovery
NEW YORK — New York City's real estate professionals are optimistic that the worst of the pandemic's impact on the market is now behind us.
Some 300,000 New Yorkers fled the city for the suburbs, sparking reports of loud city dwellers driving neighbors nuts out in the suburbs because they're not adjusting to a quieter lifestyle. The home buying craze was even brought up on Saturday Night Live.
But now the city has seen three consecutive months of an increase in sales. The hottest markets in the outer boroughs, Paimaan Lodhi, a senior VP at the Real Estate Board of New York, said.
"Brooklyn saw a 90% increase and queens saw a 70% increase," Paimaan said. "There's a sense the market has bottomed out and we are now on an upward trajectory."
In Clinton Hill, Doug Bowen of Douglas Elliman said that on the higher end of the market, there are bidding wars happening for townhouses.
"We're just seeing activity in the townhouse market that we haven't since 2013," Bowen said. "The sense of privacy and outdoor space these properties offer.
Bowen showed PIX11 a luxury townhouse at 388 Washington Avenue that's on the market for $7.2 million.
"I think people are attracted post COVID to Brooklyn because it's less dense," he said.
Manhattan has had the hardest time bouncing back both in sales and rentals, with sales volume remaining flat.
Experts say if you're a renter, this is the time to get the best bang for your buck.
"Concessions are across the board," said Hal D. Gavzie, director of leasing at Douglas Elliman.
Rent prices are down 25 to 30% year over year in the city. Landlords are willing to negotiate with tenants and the longer you sign your lease for, the better the deal.
"If the lease term is 24 months, you may be able to get three to four months free," Gavzie said. "In some cases, we have seen six months free."