You may have found a New York property that looks good fundamentally and financially. But as a rough 2020 comes to a close, you wonder if now is the right time to buy. What are the up and downsides of today's New York real estate market?
Some things look good to very good for the New York real estate market. At the pandemic's onset, the stock market dropped by nearly a third but then recovered that loss and then some. New York real estate took a similar course. Lockdowns and isolation hit certain sectors, especially restaurants and retail, hard. Remarkably, though, deals and closings continued through the worst of it. With vaccines nearing, the real estate market is way past pandemic panic, even beyond pessimism. It's in a hopeful stance. The real estate market, momentarily shaken, now has a solid floor. Fundamentals haven't changed. New York City remains an extraordinarily desirable, unique place to work, do business, and live. Now may be an ideal time to complete that transaction and close.
The wise, though, look at both upside and downside. The pandemic feels as if it changed work and living practices fundamentally, in long-lasting if not permanent ways. We may be mostly back to normal by next summer or the summer after that. But the pandemic may have taught us something about our work and living patterns—including that we may not need so much office and retail property. Distribution centers, yes. Brick-and-mortar stores, perhaps not as much. And the residential density that makes New York City what it is feels less vibrant when physical distancing is the new norm. Suburban and rural flight could be more than a fear-driven reaction. Maybe the evolution is just to spread out.
The pandemic, though, hasn't created a new real estate world. More probably, it has just accelerated some longstanding but by now well-recognized and well-managed real estate trends, including:
- away from commuting toward remote and virtual office work;
- away from brick-and-mortar retail toward online and distribution;
- away from long-term fixed residential toward flexible housing.
In real estate, as in other sectors, keep in mind that every loser creates a winner, every loss a win. The key to sound real estate transactions is to avoid both fear and froth. Know what you want to accomplish in the short, mid, and long term. Then seek sensible property transactions that help you achieve those goals, whether personal or business.
Get the Best Help
As a real estate lawyer serving residential and commercial clients in New York and New Jersey, Melvin Monachan's practice shows him the real estate trends where they count: deal by deal, in the trenches. When you need sound advice, or are ready to make the deal and close, call (347) 389-1682 or go online for an appointment at the Law Offices of Melvin Monachan, PLLC.