Coronavirus has negatively affected the real estate market as a whole, but some cities have been hit harder than others—with New York City being one of them. In particular, the luxury housing market here has suffered quite a bit. So if you're eyeing high-end property in NYC, here's what you need to know before you try to buy a home.
Only a Handful of Luxury Homes Sold in April
Real estate professionals who sell high-end homes in New York City shared their sales numbers from last month, and they're pretty bleak. For instance, one brokerage asserted that over the last four weeks, just two Manhattan homes worth over $4 million were sold per week.
The last time the brokerage saw only two homes sold per week was August 2009. Professionals at that brokerage said they expect this pattern to continue, with very few luxury homes being sold for $4 million and up—unless sellers get desperate and drastically drop prices so buyers can get amazing deals.
Of course, the main reason for the luxury real estate crisis right now is the sudden job loss and stock market lows due to the coronavirus. But there have been some other factors exacerbating the problem. First, Governor Cuomo shut down non-essential businesses in March—and real estate was determined to be one of those businesses. This changed in April, allowing real estate deals to continue after all, but the brief shutdown still hurt the luxury real estate market.
On top of that, this market had already seen a surprisingly high inventory of luxury homes as of 2019, before coronavirus wreaked havoc on everything. One reason for this was likely the higher mansion tax on houses worth over $1 million, as well as other recent tax changes affecting expensive homes. So now due to the slowdown in sales, many sellers haven't even bothered listing their luxury homes anymore. And more affordable housing is getting harder to find as real estate slows down in general at this time.
Why You Should Hire a Real Estate Attorney Before You Buy in NYC
It might not be the best time for most people to buy in NYC, but sometimes you don't have a choice. If you need to buy a home soon, you can likely still find what you need in New York. It just might take more time than usual, and you'll need a real estate attorney on your side now more than ever.
An NYC real estate lawyer can help in various ways. For instance, he or she can review offers before you sign, inspect all documents, and ensure the title is clear. If it's not, your lawyer can work on fixing any title issues, as well as prepare deeds, negotiate a new price when necessary, and more. So whether you're looking for luxury real estate in NYC or need to find an affordable home quickly, you'll benefit from hiring a real estate attorney. Contact one today to set up an initial consultation to discuss your legal needs.