To say 2020 has been unprecedented would be a dramatic understatement. COVID-19 has created a shift in all aspects of American culture, especially in the real estate market. We are witnessing historical changes on both a global and domestic scale, including the significant socioeconomic impacts the virus has had on New York City. Prior to COVID-19, New York City elicited mass appeal in terms of both tourists and those looking to migrate to the city for the abundant employment and educational opportunities the metropolis had to offer. The idea of living and working in the city that never sleeps is what makes this locality an epicenter for real estate transactional activity. In the present COVID era, things have changed drastically–with a large majority of the populous working from home, avoiding public transit and spending more time outdoors. This collective societal revolution prompted by the viral outbreak has left formerly content urbanites tired of being crammed in their over-priced New York City apartments as the realization has begun to sink in that they no longer have to tolerate these conditions just to be closer to the office or classroom.
Surprisingly, there are thousands of square feet of available land in the immediate vicinity of New York City, yet it seems to have taken an international pandemic for people to notice. The real estate sector has grown exponentially in the suburbs of New York—particularly in the up-and-coming markets popping up in Rockland County, Westchester, the North and South Shore of Long Island, and across New Jersey. The transactional activity is absolutely off the charts and has exceeded virtually all of the industry’s top insider’s initial projections. Families and individuals who have considered eventually selling their properties and moving into their dream homes–whether that means upsizing, downsizing, or relocating–are deciding that the current market conditions have created the ideal opportunity to do so. People are fleeing the city both to escape the viral hotspots and have more room to spread out and enjoy their newfound time at home. For people considering selling on Long Island, real estate experts advise that it is the strongest market from both a buyer’s and seller’s perspective in nearly half a century.
Though the pandemic has caused economic turmoil, there is a distinct upside for participants in the real estate industry. People are making their dreams a reality. With the additional profit to be gained from this all-time-high, now is the time to invest in fix and flip opportunities. On Long Island alone, the sale price of homes has increased from 9.3% to13% over the past year alone. Additionally, the number of homes on the market rose by 55% in Suffolk County and 65% in Nassau County.
Another key factor that has provided motivation for the recent uptick in home sales are the lowest interest rates in nearly 50 years. Extremely affordable rates for conventional mortgages are being approved for individuals with a solid credit score and acceptable debt-to-income ratios. Accordingly, the timing is right for savvy real estate investors to make their move on discounted bargain properties and utilize this easily-accessible funding to expand and diversify their property portfolios. Buying in the current market environment will only set you up for increased profit margins in the future as the real estate industry is showing little signs of slowing down anytime soon.
This data highlights the wide scale migration of people away from the confines of the city. It is impossible to drive through any of the suburban hot spots without seeing a house with a “for sale” sign or “under contract” sign in the yard on any street—and when you find your dream investment property, Andelsman Law is here to represent you.