We'll be discussing the current state of the NYC real estate market, and also for the state of New York. As New York continues to fight the pandemic, Governor Cuomo has extended the state’s moratorium on COVID-related residential property evictions until January 1, 2021, through Executive Order. Additionally, previous Executive Orders have prohibited charges or fees for late rent payments, and tenants facing financial hardship can still use their security deposit as payment and repay their security deposit over time.
The New York real estate market (statewide) continued to be hot in September 2020 with both sales and prices increasing by double digits as compared to last year. The closed sales in September increased by 12.2% (YTY) while pending sales surged by +49.3%.
However, due to extreme disruptions caused by the pandemic, year-to-date sales (closed) are still behind last year by 11.6%. The statewide median sold price in New York climbed increased by 17.5% (YTY) to $324,900. The average sold price also jumped by double-digits (+ 18.2%) to $432,547. The price growth can be attributed to stronger buyer activity and an insufficient amount of homes available for sale.
On the other hand, the New York City housing prices trends have shifted from their normal course of trending up. After remaining firmly steady throughout the pandemic, July presented a whole new picture. July’s $680,000 median sale price represented a 13% year-over-year drop, according to PropertyShark.com.
This trend followed in August as well. August 2020 was marked by the lowest median sale price of the year and sales dropped 19% below July levels. The prices plunged again, from $680,000 to $665,000, declining 2% as compared to July and 1% as compared to last year. Real estate sales across the four boroughs of NYC were down 45% compared to last year's August, representing the sharpest year-over-year rate of contraction in three months. [Read more…]