Elegran Market Update: May 2020

Written By Jared Antin | May 07, 2020 | Published in Elegran Insider
2020%2f05%2f07%2f13%2f21%2f47%2f7b495601 82fa 47b2 80b6 0d239c9e72c1%2f2020 04 13 20 13 55 b8aa557b 9710 4b55 91b7 e70651f0feaf blog monthly market update nyc image 19

April provides us with the first full month of data since the COVID-19 crisis, and we are beginning to see the impact. Historically one of the busiest buying and selling months, April saw a notable decline in inventory and a sharp drop-off in new contracts signed. With the high level of uncertainty, demand has essentially evaporated. The monthly supply of new listings is down 74% from March 2020, and down 88% from April 2019 as sellers delay or take their homes off the market. With Governor Cuomo’s announcement that real estate and related professional industries will be set to reopen in Phase II, we can expect a marked uptick in activity at that time and ongoing. 

The housing market is not performing as it normally would due to the crisis that arrived in the midst of what is typically the busiest three months of the year for NYC buyers and sellers. Looking at data covering the past three years, an average of 1,010 contracts were signed for Manhattan real estate in April, compared to only 216 this year, reflecting a 79% decrease.

In order to gauge negotiability, Elegran and the New York City brokerage community are tracking the bid-ask spread. Based on data analyzed, the average offer was submitted for 14.5% less than the asking price and sellers accepted offers 8% on average below the asking price. Sellers are also drawing the line, rejecting offers that are on average 17% below their asking price.

As is all of New York City, the real estate community eagerly awaits Governor Cuomo’s directives regarding the economy and the winding down of the “NY ON PAUSE” order. As the economy begins to restart with Phases One and Two, Elegran continues to utilize technology and is finalizing protocols to create an environment where transactions can occur in a safe way that will include social distancing for in-person showings and the continued ability to go through the buying or selling process utilizing virtual showings and other supporting technology.

While market conditions and our understanding of the future shift daily, we believe there is pent-up demand, from both buyers and sellers, which we expect will come to market this summer and fall as restrictions ease and we all determine how to go about navigating our new normal here in New York City.


Blog Archive

 

This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2020 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.