"So how's the market doing in NYC? What impact has the virus made" These are the questions I've been getting from a lot of my clients and out of City & State colleagues. We all know that there has been a pause with days on market and that only virtual showings are allowed. Photography and new listings, well you can forget about it. What's interesting are the numbers before the virus. Actually it's pretty encouraging:
According to Miller Samuel's just released 1Q Market Report:
The number of resales closed was up by 9.2%
Inventory down 9.5% -- The first inventory decline in 10 quarters
Median Sales Price was down 3.3% at $939,500
Days On Market up 13.7% at 95 days
The average discount for a resale apartment rose to 7.1% (most since 2012)
The above are my favorite statistics. By the way, I always like to look at resale stats considering it makes up for a near 90% share of the overall market. When you look at these numbers, it says that buyers were starting to take advantage of the weak market and that sellers were finally starting to accept where the market has been. Inventory levels declining the first time in 10 quarters was big news especially seeing that it happened during the 1st quarter which is an event that hasn't happened since 2007.
"The 8% decline during this period in 2020 indicated that would-be sellers became more reluctant to participate, given the added uncertainty. If the outbreak is not prolonged, there is still potential for a release of pent-up demand, but this depends on the extent of damage done to the economy," said Jonathan Miller.
Miller makes an excellent point here. The outcome is anybody's guess but at least we had some good news going into this mess. The good thing is that real estate market cycles are slow and affected a lot slower than the financial markets. It is such a volatile time on Wall Street, absolutely bonkers. These 1,000 point daily swings seem almost normal! God willing we can have a swift recovery with the government helping out in the interim. Italy & Spain have reported COVID slowing. Wuhan business and public transportation are now open. All eyes are on China right now.
For the full market report, click here or shoot me an email.