I Predict A Strong Rebound To NYC's Residential Real Estate Market in 2021
This is not coming out of left field, or wishful thinking; the data supports my prediction. Signed contracts in Q4 2020 are up over Q4 2019. These are pending deals which will close in Q1 and Q2 2021 and give us a strong head start over 2020. Plus, we know what happened in Q2 and Q3 of 2020; 2021 has got to be better.
As real estate agents showing homes, we feel the day-to-day energy of the market. It is being fueled today by buyer confidence. Traffic is up. Buyers are wearing masks, being socially distant, observing the new showing protocols and making offers. Some are low, but many are being rationally negotiated.
Why the surge in buyer confidence? Here are 7 reasons for it:
1. Mortgage interest rates are at historic lows, and lenders remain willing to close deals.
2. The surging stock market is creating wealth and the perception of wealth. Perception becomes buyer reality.
3. Wall Street Bonus season is about to begin, and the expectation is that this will be a strong year.
4. Political stability. The change in the White House and the anticipation of a change at Gracie Mansion are good for the local real estate market.
5. Federal stimulus money will aid local government, small businesses and individuals in need.
6. COVID vaccines promise a return to normalcy. Or at least a new normal.
7. Prices have come down, and who doesn't like a sale? Discounts vary by price point, style and neighborhood.
Will the current buyer confidence continue into Q1 and beyond? I checked my Magic 8 Ball, and the response was, "Signs point to YES". Office workers are returning to their NYC offices. Renters are returning, and buyers will follow. NYers, who moved to their weekend and vacation homes, are returning to The City. Visitors, including tourists, are returning. NYC is positioned to take off. Buckle up and hold onto your hats!
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