Market Reports Amid COVID-19
New York City, the current US epicenter of the virus, has been significantly impacted by Covid 19. Open houses and showings were cancelled, taking an inevitable toll on market activity in the last weeks of March. If the anticipated trajectory of the virus holds, we’re at the beginning of this curtailed real estate activity. January sales were close to last year’s, while February had 10% more sales than in 2019. However, March performance marks the downturn of the market.
The first week of March was hopeful with 8% more contracts signed, but this boost did not carry through the remainder of the month. As the severity of the COVID-19 outbreak in the area increased, activity in the market sharply declined. This week alone, contracts plummeted 42% year-over-year, 37% of active listings saw discounts and new inventory was almost nonexistent.
Like the virus, the state of the real estate market remains in uncharted territory. Given the current conditions in New York City and the 30-day extension of national containment guidelines, we anticipate a significantly softer market in Manhattan for at least the next 30 days. Recent stock market performance and the overall stressed economy will certainly be contributing factors in overall activity. We hope that everyone stays safe and healthy and that our report provides useful information during this unprecedented time.