New York City’s revived real estate market is seeing strong demand and attractive prices compared to recent history, a leading brokerage told CNBC on Tuesday.
“The story I see in all areas: all segments are in transaction. New York is back and people want to be here, ”said Christopher Kromer, a broker with Brown Harris Stevenssaid on “Power Lunch”.
“We are coming out of a record number of contracts signed in the second quarter, and what drives us is that buyers are seeing value. They sense an opportunity, and there is real hope for an economic boom in September when it opens. “
Kromer said potential buyers can still find reasonable opportunities, after house prices in the city were depressed during the height of the Covid pandemic. “For the most part, if you buy today, it’s probably cheaper than it would have been three or four years ago,” he said.
However, a recent report by Douglas Elliman and Miller Samuel found that the median apartment resale price in Manhattan reached an all-time high in the second quarter. Average selling prices increased 12% in the quarter and topped $ 1.9 million, and there was also a 150% gain in sales in the same period from last year. .
In the second quarter of 2020, Manhattan apartment sales saw their biggest percentage drop in 30 years, with residents fleeing the city during the Covid pandemic and brokers largely unable to show the locations to potential buyers.
Kromer said he believes the recent record median selling price is likely affected by the dynamics of the luxury market. “I think he’s probably tilted with a lot of high end closures. The luxury market has been booming lately with a lot of discounts. “
Recent activity in the luxury market has not erased the city’s high inventory levels created by the pandemic, Kromer said.
“What drives this are more realistic sellers and lower prices,” the broker said. “We are still at near record levels of inventory. So the sellers come down to meet the buyers at their prices. Buyers have options. “
On the other hand, Kromer said markets in outlying New York City neighborhoods, such as Brooklyn, were “much more resilient” during the pandemic than in Manhattan.
“People were looking for value, space, and less dense areas, and you didn’t see the discounts you saw in Manhattan in the outer boroughs,” Kromer said.
A few of Kromer’s own listings in Queens and Brooklyn recently sold above asking price after receiving multiple offers. A two-bedroom co-op in Brooklyn has even sold about 8% to 9% above the price it was selling three years ago, he said.
A single-family home in Queens has been “overwhelmed with interest,” Kromer said. “We had about 50 showings in the first week,” he said, with the price selling about 10% above the asking price.
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