What is the market going to do? Hey everybody. Matthew Bizarro here, Broker/Owner of the Bizzarro Agency and for today we have my main man, junior agent, Francis joining us to bring you the May Market Report.
Diving into the data, I’m going to show you two very important charts and this shows the difference in the effects of what COVID19 has done to the real estate market in upper Manhattan.
So what we have in front of you is deal count. This is how many homes (condos, co-ops, townhouses) were sold per quarter. We’re going to look at the first two quarters cause that’s what’s the most relevant right now (obviously may right in the thick of the second quarter).
So first quarter deal count for home sold was how much? 245. Ionically, the count for the first quarter in 2020 is also 245.
So our first quarter kept pace with last year perfectly. Now here’s where we’re going to see the difference. Last year’s 2019 second quarter, how many properties were sold? 320. Now COVID19 steps in and where are we at?
Halfway through almost may in the second quarter. Where do we sit with the property sold? 39.
So we have gone from a quarter that’s going to have last year, 320 homes sold to right now being halfway through and only having 39. You want to talk about putting on the brakes? That’s what COVID19 has done to our market.
The last chart I want to share with you is a very important one. It’s the listing count chart and this shows the amount of homes, co-ops, condos and townhouses that are on the market right now and if you take a look at this, you’re going to see all a lot of inventory in Harlem.
There’s 209 homes for sale in Harlem. Everyone looks at that and says, “Whoa! Shy is that so high? Why is that so much higher than everywhere else?”
East Harlem, Morningside, Washington Heights, Hamilton Heights, and Hudson Heights, all have around 50 properties each and Inwood and Fort George have a little bit less.
But they say, “why is there so much inventory in Harlem?” Well, that’s because of all the new construction and new developments. There’s a lot of condo inventory for sale, so if you happen to be a condo buyer, now is the time. With the amount of supply that is out there, you can go in and get some great deals.
Interestingly enough, new construction aside, the rest of the market is very low. Supply right now is super low. We’re talking less than 500 homes for sale in all of upper Manhattan. It hasn’t been this low in over 20 years.
We’re starting to get nicer weather. We’re starting to get more antsy. People are home. People are sitting around realizing this isn’t enough space for me. “I really hate my apartment.” or “I only dealt with this neighborhood or this building cause I was never home!” and now they’re home. So there’s a lot of beginnings of the plannings and the next chapter in their life and that always involves a new home.
If you are thinking about selling your home, you may want to take a look at this data. With incredibly low inventory, your listing will be competing with far less properties right now in this market.
Same if you’re a buyer. Yes, you have less choice right now, but you also may be shopping with less people and have less competition to get some homes that are good deals.