With the Coronavirus pandemic affecting the United States and real estate market, is it time to buy in NYC? Let’s investigate.
This poll was from Gallup’s annual Economy and Personal Finance poll and was conducted the first two weeks of April. From the poll, only 50% of Americans say they believe it’s a good time to buy a home, which is the lowest ever measured by Gallup. This is two percentage points lower than in 2006, right before the mortgage crisis.
While Americans have the tendency to believe it’s a good rather than bad time to buy a house, the pessimism and confidence drop is largely due to COVID-19. This is because of its effect on slowing down the U.S. economy along with worries about personal financial situations and no real end date to the pandemic.
It is important to note that while this survey takes into account U.S. adults in general, homeowners and renters tend to have differing opinions. For instance, homeowners are more likely than renters to believe it’s a good time to buy a house. However, while homeowners are still more optimistic, their belief has declined to its lowest point of 53%. Renters on the other hand currently have 44% that believe it’s a good time to buy a house. Compared to 37% in 2008, renters are more optimistic now about the real estate market.
U.S. real estate market right now
Despite the decline in American’s optimism about the housing market, is buying a house amid Coronavirus pandemic a good idea? While the U.S. housing market started off strong at the beginning of the year with low mortgage rates and the highest amount of contracts signed in February, the market has taken a hit due to the Coronavirus.
Home sales have dropped in many areas of the U.S. including the Midwest, West, Northeast, and South. Additionally, the Commerce Department stated that in March 2020, home sales fell 15.4%, which is the biggest percentage since July 2013. This means that along with the low supply of housing available, demand has also slowed down drastically due to falling consumer confidence and unemployment.
However, due to this decline in demand, it could mean lower home prices. In fact, many listings on the market have already had price drops since the Coronavirus lockdown. As mortgage rates are still low, this can be a good opportunity for those looking to purchase a house to take advantage of the price drops and low prices of housing on the market. It can be great for those looking for a starter home or even those looking to invest into a property that has lots of potential.
Homes for sale New York City
If you’re looking to buy a house in New York City, Localize is a great way to find good opportunities. By utilizing our insights, you can find housing with great future potential such as spaces near highly rated school districts or even apartments with current big price drops. For instance, Manhattan currently has the most apartments with price drops compared to the rest of the other boroughs. Houses to buy in Manhattan NYC would be ones with the biggest price drops, those in high rated school districts, and ones in highly sought after neighborhoods. Brooklyn comes in second with the most listings with price drops, then Queens, Bronx, and lastly Staten Island. Here are just a few opportunity listings you can take advantage of now:
Neighborhood: Ditmas Park, Brooklyn
Space: 2 beds, 1 bath
This Brooklyn apartment space is a great opportunity as it has a price drop of 11.33%. Additionally, according to Localize’s insights, it is considered a low price as its asking price is 19% lower than other similar properties in Ditmas Park. It is also located near Brooklyn College Campus and the neighborhood has slightly below average crime rates.
Neighborhood: Nolita, Manhattan
Space: 2 beds, 1 bath
This condo in Nolita, Manhattan is potentially a great buy as currently it has a price drop of 8.7%. The space has plenty of bright natural light and is located near plenty of transportation transit and bus lines. Additionally, the nearby schools are high-rated in terms of citywide school quality measures and it ranks very high for its supportive environment.
Neighborhood: Pelham Bay, Bronx
Space: 3 beds, 3 baths, 1,166 sqft
This single-family home in the Bronx has a low asking price as not only is it around $100k lower than Localize’s estimating price, but also lower than similar properties in the area by at least $30k. Additionally, there are 1,597 sq ft of unused development rights that can be used to build additional floors to the building or even sold as air rights. The neighborhood the house is located also has slightly below average crime rates.
Neighborhood: East Midtown, Manhattan
Space: studio, 4 baths, 6,400 sqft
This townhouse in Manhattan can be a great buy as it’s located in popular Midtown Manhattan. Not only is there a price reduction on this space by 12.5%, but there is also 1,632 sq ft of unused development rights. This means you can potentially use the space to build or even sell as air rights. The neighborhood also has below average crime rates and the nearby schools are very high rated on student achievement, leadership, and environment & culture.
Neighborhood: Whitestone, Queens
Space: 4 beds, 1 bath, 994 sqft
This single-family home in Queens can be a great buy as it has a price cut of 3.64%. Additionally, the property has more room to grow since there are 1,003 sq ft of unused development rights. This extra space can be turned into a garage or an additional room to the house, such as a workspace or sun room. The neighborhood the house is located also has below average crime rates and the nearby schools is high rated on citywide school quality measures and it has strong teaching & leadership.
Although the real estate market has taken a hit due to the Coronavirus pandemic, there are still positives to this market. The decline in prices for some housing listings as well as the low mortgage rates can be beneficial to those looking to purchase a home and to invest in property. With just these few examples of great opportunities and even more on Localize, we hope you find your dream home in NYC!