It was announced recently that a COVID-19 housing report shows real estate markets throughout the state are suffering from a significant decline in real estate sales. However, the numbers show that all counties in New York State are still having an above average rate of home sales and buyer’s activity. The number of homes sold in the city of New York, however, is significantly lower than the national average. According to the report, there are a number of factors that are influencing the declining rates of home sales in the state, most notably a lack of demand by potential home buyers in this market, higher interest rates, and unemployment.
With all these facts, it is easy to conclude that the New York City real estate market is experiencing a serious decline in the current time, and might be negatively affected in the future. One of the main reasons for this decline is that the New York City real estate market has been hit by a combination of factors. For more information there are a number of resources available, such as Leave The Key Homebuyers, that are available to help during this time while we adjust to life following the advent of this pandemic.
The State of Affairs in New York
It is obvious that there are many things that can affect the status of New York real estate during COVID 19. One of the biggest concerns is the virus itself and the new social distancing requirements. This is something that has happened across the globe. Regardless, the state of New York is still booming due to the fact that it has begun to see a change in recent weeks. Soon enough, when things have calmed down, college students will be looking to rent and families will become comfortable with the idea of moving again.
There are still many New York real estate developers who are enjoying the profits which they have been earning since they first started. The main reason why these companies are still making profits is because the economy is still booming in New York. This is the main reason why these companies have been able to build the homes that they have been building. Now, there is a need for them to be more alert when it comes to the problems that might occur in the future. New York City and New York State depend on the same thing: New York real estate investors.
A Slow Recovery
The status of New York real estate during COVID-19 is not going to be able to bounce back in its entirety for quite some time, but the economy will pull through. When it comes to the real estate in the state of New York, it seems like the situation is the opposite. If the state of New York is going to experience a slump in the real estate business, New York State residents are going to suffer in a big way. With restrictions, social distancing, and the general lack of confidence due to the virus, everyone has experienced a decline in activity whether it’s real estate or stocking your local market with the goods you need.
Steadily you can find establishments that are beginning to allow walk throughs to improve sales, others in the city are still prohibiting it though, so be sure to ask if you are unsure. It is important to look at what the economy has been doing and how the real estate market will be impacted by the economic news going forward. It is natural to assume the real estate market will experience a setback during this time, much like other areas of concern like the medical field, manufacturing industry, and education.
We must look at the fact that the economy is in a state of decline, which means there is less money to spend on new property investments and that there will be less people buying new homes. With hard data the economy might be able to tell where real estate is heading, and just how long we will see this setback, whether it is a few weeks or a few years.
Why Was New York Hit So Hard?
There are a number of reasons why people believe that New York has been affected during the pandemic, outside the obvious.
The first is that people living in New York City are much more susceptible to certain diseases than they would be if they lived somewhere with a lower population density. This is especially true if they live near a subway station or other public place where there is a lot of movement going on. The reason for this is because there is so much activity going on within the city. For example, hospitals, restaurants, etc. all happen to be in the same general area and can spread the disease very easily.
The second is that real estate has been impacted by the small amount of available land and constant construction over old properties. Many people who own apartments in the city complain that they don’t feel safe because of the constant building construction going on.
While these points might not be entirely true, it is important we look at the facts and continue to move forward: while the real estate market has been a vulnerable business affected heavily by the virus, this is not to say the industry itself won’t bounce back.
This pandemic may not be the end of the world, but it certainly has proven a challenge for individuals the world over. However, we do have to continue living through this challenging time, albeit with some restrictions for safety. Part of living through difficult times is doing our best to continue our trajectories, and for many people the next step in their life trajectory is buying a home. While it may be difficult now, inevitably the market will recover and folks will be able to invest in the home of the dreams.