2021 Outlook: Manhattan Markets
15 reasons why we are bullish on Manhattan real estate for 2021:
1. The elections are behind us; regardless of which horse you bet on, certainty is what matters and is the key driver of major financial decisions.
2. Several viable COVID vaccines are ready to go into circulation, indicating a bottom for COVID’s impact on health is just around the corner.
3. Spring markets traditionally show the most activity. In Manhattan, the Spring market starts as early as February.
4. Bonus season is always a driver of luxury market purchases. With the stock market at all-time highs, there are sure to be buyers out there with money to take off the table and invest in some of the best buying opportunities of the decade.
5. Bitcoin $20,000+….
6. Interest rates continue to provide some of the best financing terms we have ever seen.
7. Pretty much anyone who lives in an apartment is seeking more space. WFH is here to stay in some capacity, and who doesn’t desire a proper home office. People are much more aware of the inadequacies of their homes now. Many will decide to upgrade.
8. More stimulus money is coming, and more money will hit the economy.
9. Record equity market returns.
10. Any listing on the market pre-Covid that still has not found a buyer will continue to have price reductions until those sellers find the market. We are seeing opportunities for condominium listings at under $1000 psf. Prices are good, and negotiability is high.
11. Once we see more likelihood of heard immunity through vaccinations, half the population that left Manhattan for the Hamptons will come rolling back to town to put their kids in schools for September 2021. Wait until they realize how small their apartments are compared to their country house. Perhaps it’s time to upgrade.
12. First-time buyers continue to enter the market. The opportunity is now for them, not eight months from now.
13. Pent up demand: Unlike most US markets that are booming post-COVID, NYC has been much slower to rebound. The current inventory will be absorbed at some point once the market reaches equilibrium. There remains more demand from the market being shut down in March-June that still hasn’t come through. Wait for it.
14. The international buyer’s return: with travel less restricted post-vaccine, we should see a boost from international buyers once they can travel easily to NYC.
15. NYC always comes back.
As always, we are here for you with answers to your specific questions about your real estate needs.