Thoughts on the nj/ny market right now?

Question

Hello everyone

Just wanted to catch people's opinions on the real estate market for nj/ny/nyc area? It looks like many changes are happening in nyc and i wanted to get some feedback. Thanks :)

Jason Lee · Answer

Median re-sale price in Manhattan was down 6.5% YOY in Q2.

Jessica Perrizo · Answer

In my experience in the city and in Brooklyn, there has been a surge in listings after the lockdown lifted from pent up supply and people relocating. There is also a surge in pent up demand though in select areas. Both boroughs have many micro markets and each one is behaving differently. Much of Brooklyn, for instance, is getting multiple offers quickly. Manhattan is a different energy but our team has properties selling there too. The rental market is tough but not dormant either.

I agree with Scott in that the top of the luxury market is an entirely different arena.

Scott Wolf · Answer

@Kusmayadi Djunaidi, thanks for the "data".  So you think because of one 5-unit luxury condo (a sector that was already being hammered pre-covid), everyone else is selling at 50% discount.  Great insight, and wonderful anecdotal evidence regarding your friends.

I recently got the listing for the Brooklyn Bridge, since NYC is basically dead, I can sell it to you for a 50% discount. PM me if interested.

Jacqueline Maloney · Answer

My brother is a broker in Manhattan and my Dad is a property manager. They are seeing rental prices drop between 18-20% in the buildings they service. There was an alarming number of vacancies earlier in the summer with a lot of people choosing not to renew their leases, but they are able to mostly fill the properties at the reduced prices.

I am an agent in Monmouth and Ocean counties and similar to what others have posted we are seeing inventory fly off and bidding wars. My broker is expecting the market to slow come winter when the mortgage moratorium eventually expire.

Bonnie Sterling · Answer

True, the market was very good prior to Covid19. Nice to hear that it's holding out

Tom T. · Answer

@Kusmayadi Djunaidi  I sell real estate in Monmouth County NJ and have seen a recent increase in houses selling above ask.  I don’t see anyone in my area cutting prices by 50% or even anything close to that number.

Dan Mcguire · Answer

As an investor and realtor on Long Island the market is crazy. Homes are selling with multiple offers over asking.

Kusmayadi Djunaidi · Answer

I agree with Max though. People are going to buy outside of NYC (I'm talking Manhattan) because of the ability of working from home now. And start buying outside of the city. I even heard from my friends that they are looking in Long Island because they can spend less money than buying in the city and have a lot more space. That is why Long Island and the area just outside the city will see their property prices increasing with a lot of demand from the city dwellers.

Kusmayadi Djunaidi · Answer

Hi Scott, you can take a look at one of the news. https://www.wsj.com/articles/covid-19-new-york-real-estate-11597939146There are more news online that you can read.

Also, some of my acquaintance and friends that own several properties in New York seeing their property have 30% less tenant.

Scott Wolf · Answer

You have any data to support this 50% price reductions?

Thoughts on the nj/ny market right now?

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