My last newsletter had nothing to do with real estate, because there was little to say. Now, while we still do not know what the future holds, we have more information about our current situation and can, in NYC at least, see a path forward. Real estate is "essential," but in-person showings are severely restricted. Apartments are still selling and renting, but both supply and demand have declined (for the moment). We are part of the second wave of reopening, so once what that means becomes clearer I will, of course, update you.
I won't predict the future because the possibilities aren't just varied, they're paradoxical -- they actively contradict each other, because they depend on still unknown variables (i.e. federal stimulus, medical advances, city/state policies, reopening timeline) as well as human behavior. Will NYC be different after this? Of course. But change isn't necessarily bad or good; it's just change. Buying is a long-term play, and we've never been able to predict what the city will look like 5-10 years in the future. This crisis simply puts that into stark relief -- we don't know what we don't know, and it's impossible to time the market.
I do have one prediction: the most important consideration for the foreseeable future is risk tolerance. I have new buyers who view this as an opportunity to enter the market and are rearing to go. I have others who are pushing their timelines back, including some stuck abroad. I have renters moving to the city trying to take advantage of lower rents, while others are nervous about signing a new lease. It's interesting to have clients in so many positions, but it reinforces the idea that we can't predict much.
In the rental market, a lot of people are asking me about rent freezes. Gov. Cuomo has yet to make any decisions, and we may not get guidance until closer to when housing court is set to reopen in mid-June. The bottom line? If your income hasn't changed, your rent probably hasn't either. Landlords have expenses as well. If you have had a reduction in income, have been laid off/furloughed or are afraid you will lose your job soon, start by talking to your landlord. The best time to deal with a problem is when it's still minor.
If you are free today at 5pm EST, I'll be doing a short talk on Instagram Live walking through the buying process including new lending standards, contract contingencies, and showing limitations related to COVID-19. Join if you can, or email me if you want a recording, and scroll down for more of what's happening -- real estate and otherwise -- right now in NYC.
