New York City proves that even the pandemic is no match for its real estate market. Despite reports of residents fleeing the city for the suburbs, steady median sale prices and strong co-op sales suggest New Yorkers are staying put for the long-haul. Localize analyzed data from 2019 and 2020 to produce its premiere market report, giving buyers a heads up on what to expect during the coming year.
Check the full report here:
New York City homes kept their value
While the number of sales may have initially dropped during the start of the pandemic, they quickly rebounded. Co-op and condo sales prices remained steady and largely mirrored 2019 levels. By the end of 2020, median sales prices had surpassed 2019 levels in most boroughs.
New Yorkers craved outdoor space
New York homebuyers were keen to hunt for deals as 47% searched for price drops. However, given the city’s shutdown, it’s no surprise that proximity to public parks and outdoor space was also top-of-mind for buyers. Everyone was craving a bit more sunshine and space to spread out. Additionally, the median asking price for homes with private outdoor space was 88% higher than those without.
Breakdown of most searched property attributes:
- 71% searched for natural light
- 47% searched for price drops
- 32% searched for access to parks
- 23% searched for outdoor space
Despite the premium cost for private outdoor space, there are neighborhoods where buyers can get it for under $1M. Those looking for a bargain on homes with private outdoor space should consider Jackson Heights, Queens, where the median asking price was $538K. Brooklyn’s Bushwick neighborhood also came under the million mark with a median asking price of $875K. Those wanting a Manhattan ZIP code will have to shell out much more as Murray Hill came in as the least expensive neighborhood with a median asking price of $1M.
2021 real estate forecast
What does 2021 have in store for NYC real estate? We predict continued growth given current buying trends. As favorable interest rates continue, buyers are able to get more house for their buck, ensuring that NYC still is a good bet. Outdoor space will remain a buyer must-have and we expect an uptick in interest for the neighborhoods below.
Hot 2021 neighborhoods
With most of these neighborhoods located close to the waterfront, they are sure to meet homebuyer demand for proximity to public green space.
- Williamsburg: Going strong as one of Brooklyn’s top neighborhoods, Williamsburg saw a 135% increase in search demand in 2020. Thirty-six percent of listings here are just a five-minute walk from a park and 42% of listings offer private outdoor space.
- Long Island City: The average sale price for homes in LIC came in just under $1M. Twenty-five percent of listings are located within a five-minute walk to a park and 31% of listings offer private outdoor space. Many LIC residents also benefit from water views, with several high- rise condo developments.
- Spuyten Duyvil: An affordable alternative to Riverdale, 39% of listings offer private outdoor space. The area is home to many affordable co-ops and has plenty of green space for both dogs and people to enjoy. It’s a great choice for those looking for Hudson River and Palisades views a mere 30-minute commute to Midtown.
- Lower East Side: The pedestrian-friendly neighborhood saw a roughly 300% increase in search demand in 2020. The LES is also conveniently located near eight-acre John V. Lindsay East River Park while 39% of neighborhood listings offer private outdoor space. The launch of Essex Crossing is expected to bring more than 1,000 new residents to the area.
NYC’s real estate market is here to stay and has rebounded despite an ongoing pandemic. For savvy homebuyers, the city is still a sure bet in 2021. For a deeper look at the city’s real estate trends, check out Localize’s Report.