"At every price point, buyers will be looking to expand their footprint."
Posted by
JD (aka Jason Dean)
May 26 '20, 09:45
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If you ask New York City real estate agent Brian K. Lewis, the people in his industry are like thoroughbred horses: “Right now, we’re not able to run. We are all at the gate at the Kentucky Derby and we are waiting and we’re biting at our bits.” Though movers are considered essential workers in the city that was once the epicenter of the country’s outbreak, shelter-in-place orders and new restrictions on real estate transactions have thrown a wrench in the process of renting and buying property. According to Compass, the brokerage where Lewis works, the market in New York City hit bottom around April 12. However, by the end of that month, the average number of Compass listings going into contract were 24 percent higher than before the shelter-in-place order went into effect, as some residents—now more intimately acquainted than ever with the shortcomings of their current living spaces—sought a change.
When the market restarts, buyers in studios will reach up to one-bedrooms. Two-bedroom folks are going to be spreading their wings to the three-bedrooms. Cash buyers will feel emboldened by their sexy cash position and will be looking for a good deal. At every price point, buyers will be looking to expand their footprint. I do think the sub–$1 million homes will be very interesting. Call them the starter homes in New York, because it’s so expensive to live here.
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