Thoughts on the nj/ny market right now?

18 Replies

Hi @Laura Da Silva !

I think the real estate market here is going to stay because of of a couple of reasons

1. Those coming from New York will keep prices at a threshold higher than the norm

2. The interest rates being so low it is allowing the buyers to push the prices past a normalcy.

Hi Laura, I have several friends that own real estate in Metro NYC and they are in some trouble right now with the Covid-19 and the job situation. Prices of the real estate in Metro NYC has been cut in half and a lot of the rental is empty.

Westchester is pretty hot right now, speaking to brokers and actual sellers getting more what they paid for buying 2-3 years ago. Similar situation in Ulster, inventory is short and prices staying high. Market is overheating for sure. I give it another half a year, prices should drop then. 

Originally posted by @Kusmayadi Djunaidi :

They are reducing the rent, but about selling I'm not sure. Now, the ones are selling already reduced their prices in half.

You have any data to support this 50% price reductions? 

I agree with Max though. People are going to buy outside of NYC (I'm talking Manhattan) because of the ability of working from home now. And start buying outside of the city. I even heard from my friends that they are looking in Long Island because they can spend less money than buying in the city and have a lot more space. That is why Long Island and the area just outside the city will see their property prices increasing with a lot of demand from the city dwellers.

@Kusmayadi Djunaidi , thanks for the "data".  So you think because of one 5-unit luxury condo (a sector that was already being hammered pre-covid), everyone else is selling at 50% discount.  Great insight, and wonderful anecdotal evidence regarding your friends.

I recently got the listing for the Brooklyn Bridge, since NYC is basically dead, I can sell it to you for a 50% discount. PM me if interested.

In my experience in the city and in Brooklyn, there has been a surge in listings after the lockdown lifted from pent up supply and people relocating. There is also a surge in pent up demand though in select areas. Both boroughs have many micro markets and each one is behaving differently. Much of Brooklyn, for instance, is getting multiple offers quickly. Manhattan is a different energy but our team has properties selling there too. The rental market is tough but not dormant either. 

I agree with Scott in that the top of the luxury market is an entirely different arena. 

My brother is a broker in Manhattan and my Dad is a property manager. They are seeing rental prices drop between 18-20% in the buildings they service. There was an alarming number of vacancies earlier in the summer with a lot of people choosing not to renew their leases, but they are able to mostly fill the properties at the reduced prices.

I am an agent in Monmouth and Ocean counties and similar to what others have posted we are seeing inventory fly off and bidding wars. My broker is expecting the market to slow come winter when the mortgage moratorium eventually expire.