The City Blooms, The Market Booms: The Positive Effect of Spring in New York City
Gratitude defines the feeling of this new season. Spring came through, vaccines came out, the city reopens and the question we are left with is: as a Real Estate Market but, most of all, a city that welcomes people from everywhere and maintains a worldwide culture at every corner, are we prepared for a comeback?
In the past year, we saw the market break, then thrive, then break again, then overflow in concessions, and now we get to recover. Just these last three months, New York City went through a turnover on its usual market behavior, experiencing a low inventory, a breakthrough in the buyer’s market and recovery mode, and finally, prices and concessions going back to tradition.
The Market
Spring may be a breath of fresh air to some, and in regular conditions, it truly can be. Manhattan sales increased by 2.1 percent for the first time since the shutdown in March, moved by the current affordability status, and buyers are coming with a new profile: larger properties, smaller price per square feet. Many will agree that it is too early to say that we have fully recovered.
Weekly active listings and contracts signed are up by 1 and 3 percent, respectively, and pending sales are up by 3 percent and can only get higher, which comes as a reaffirmation of the insane turn in the market. With over 7,200 active listings, the supply is up by 27 percent from last month, and inventory can finally start to grow again.
It is selling time! The average number of days on market is 60, surprisingly low, considering later situations. It is also time to listen to the market. If not one single offer comes by day 65, lower your prices.
Summer, on the other hand, could be something to worry about. Inventory has been brought down by the jump in the market activity, and a correction should be expected in the next few months, but because inventory is down, which is not usual for this time around, May, June and July might be even lower on availabilities. Or not, it would not be the first time that the market surprises by behaving the opposite than normal.
The City
As for the city, the efforts to get things back to normal are not only outstanding, but also unusual. Alongside the NYC Reawakens campaign launched by Mayor de Blasio and NYC & Company to get tourists back to the city, previous residents who left because of the pandemic are expected to be back as well.
New restaurants, attractions, venues, hotels, retail and more are included in the plans to lure people, and now that is a possibility. Just last month, theaters were back to activity, and now bars are full again. Art exhibitions and brand new themed attractions, such as the Museum Of Natural History’s reworks, Yayoi Kusama’s exhibition at the NYBG.
Last but not least, the real headline of spring: U.S. citizens who have been fully vaccinated are no longer obligated to use masks, except in crowded settings. Now you can enjoy the full experience of seeing and smelling the cherry blossoms of Riverside Park, taking walks on Brooklyn Botanical Garden, and exploring the diversity of Sakura Park. You can even check Central Park’s Spring Guide map for nice spots to visit.
I, for one, visited the Brooklyn Botanic Garden and I loved it. Being finally able to smell the beautiful flowers and explore all the amazing arrangements of the garden is something I was excited about and now, mask-free and vaccinated, is a possibility for everybody too!
What about you? What are your plans for this season? Let me know in the comments!
by Beatriz Moitinho