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Private Lenders: Evolving Market Means a Renewed Lending Focus in 2021

With the economy in an unprecedented state of flux, it’s essential for private lenders to concentrate and migrate to markets that offer the highest potential return on investment. Real estate investors are seeking private financing across a wide range of investments including fix and flip loans, long term rentals in SFR and multi-family, ground-up construction as well as commercial and industrial loans. It is essential for private lenders to be active nationwide covering a diversified portfolio with flexible and accessible funding options. Here’s an overview of what market conditions to keep an eye out for that indicate growth in the coming year.

Traits to Look For

Federal Reserve Bank President Raphael Bostic stated recently, “Every city has its unique narrative as to why it got to where it got. I don’t think there is a general formula that if you hit each point at a certain level you guarantee an outcome.”Bostic’s insight highlights the need to analyze basic market data and trends. Moreover, the below criteria are a guideline to housing markets that may see increased demand for private lending.

  • Educated Employee Base: Areas that have an above-average percentage of workers with advanced education experience tend to be more stable. This resonates with a lower foreclosure rate and reduced risk of mortgage payment delinquencies.
  • Corporate Headquarters: These hubs of business activity and projected expansion offer significant return on investment with a lower risk profile compared to more isolated areas
  • Youthful Workforce: A younger employee population is positively correlated with robust private lending activity. Millennial workers tend to migrate to areas where there are employment opportunities and high accessibility to desirable amenities. These drawing factors lend themselves to increased real estate valuation. As such,this suggests that increased demand for private lending for projects in these areas.

We’re Here to Help

Regardless of where you plan to lend, the private lending attorneys at Andelsman Law are here to assist you in the coming year and beyond. We have the requisite experience and know-how to offer you the personal attention and flexible solutions you need to compete in this competitive industry. Contact us today to learn about how we can assist you.

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Advice and Rental Assistance Programs Available to Landlords

On December 28, 2020, the New York Senate Special Session was held to consider the COVID-19 Emergency Eviction and Foreclosure Prevention Act. The bill is the most robust to date in terms of extending eviction moratoriums and is intended to keep New York tenants and property owners in their homes if they are experiencing economic challenges due to the coronavirus pandemic. Any eviction proceedings that have already been initiated within 30 days of the pending legislation will be put on hold for a minimum of 60 days to afford renters and mortgagers the chance to file a declaration of hardship. In essence, this enacts a two-month bar on evictions to make sure state residents have the ability to benefit from the protections offered by the new law. New York Governor Andrew Cuomo signed the bill into law on December 28, 2020. Here’s a closer look at the broad eviction ban for residents of the state.

The legislation, introduced by the Democratic Senate Majority, contains the following provisions:

  • Eviction Moratorium: The bill establishes a Standardized Hardship Declaration Form, which rents can file in court or directly to their landlords to block or halt eviction proceedings until May 1, 2021 if they are financially impacted by COVID-19 in such a way that inhibits their ability to pay their entire rent on time; or if a member of the household has a condition that puts them at increased risk of severe medical conditions if they contract the virus. Renters or homeowners must show that they have lost income; have higher expenses related to health or childcare; have not been able to obtain meaningful employment to do the health crisis; or are unable to pay for moving costs.
  • Foreclosure & Tax Lien Sales Protection: The Act offers protective measures barring foreclosure and tax lien sales against any residential property owner that has less ten or less dwelling units. The owner must file a Standardized Hardship Declaration Form with their mortgage provider, local tax assessor, or with a court in which they present a financial hardship preventing them from meeting their mortgage or property tax installments as a result of reduced income, increased costs or the inability to obtain alternate employment.
  • Bars Negative Credit Reporting & Discrimination in Extending Credit: The Act further protects property owners from credit discrimination if the owner falls behind on mortgage installments on the unit in which they reside or due to the fact that they were granted a stay of mortgage or tax foreclosure proceedings. This provision is limited to single family home residences, co-ops, and owner-occupied multifamily primary residences with one to nine rental units.
  • Automatic Renewal of Senior Citizens’ Homeowner and Disabled Homeowner Exemptions: Under the new legislation, local governments are obligated to renew the annual requirement that eligible recipients recertify their Senior Citizens’ Homeowner Extension (SCHE) and Disabled Homeowner Exemption (DHE) benefits for 2021. Typically, those eligible for these programs would have to file renewal applications on their own in person with the assessor.

What Does this Mean for Landlords?

Keep in mind that a landlord who has a pending eviction case filed prior to the 30 days before the Act’s effective date will be prevented for at least 60 days, or, in certain instances, until May 1, 2021. Now that the law has taken effect, it may be too late to attempt to get your case processed unless the case is deemed a nuisance holdover. Following the expiration of the eviction moratorium in May 2021, it is largely dependent on the success of the vaccine and the percentage of the population that have received it. The long-term negative financial effect of outstanding rent balances for landlords has prompted several New York organizations that represent property owners voicing their disapproval of the new Act—as Jay Martin, executive director of the landlord organization Community Housing Improvement Program, described the legislation was effectively “kicking the can down the road” and not addressing the root causes of COVID-19’s collective impact on the industry.

Government Rental Assistance Programs for Landlords

There are several Federal and State programs that may be utilized to pay the arrears of tenants who have been affected by COVID-19.

The Federal Emergency Rental Assistance program makes available $25 billion to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic. Eligible households may receive up to 12 months of assistance, plus an additional 3 months if the grantee determines the extra months are needed to ensure housing stability and grantee funds are available.  The payment of existing housing-related arrears that could result in eviction of an eligible household is prioritized.  Assistance must be provided to reduce an eligible household’s rental arrears before the household may receive assistance for future rent payments.  Once a household’s rental arrears are reduced, grantees may only commit to providing future assistance for up to three months at a time. Households may reapply for additional assistance at the end of the three-month period if needed and the overall time limit for assistance is not exceeded.

An application for rental assistance may be submitted by either an eligible household or by a landlord on behalf of that eligible household.  

Interested in learning more? Reach out the Law Offices of Lawrence Andelsman, P.C., a New York based Law Firm representing Private Lenders, Developers and Investors nationwide.

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Connecticut Real Estate Market

The collective impact of COVID-19 is in a constant state of flux—with the public and private sectors scrambling to adjust for this unprecedented event and implement measures to ensure the continued sustainability of daily operations. This is certainly the case when it comes to the Connecticut real estate market, with ongoing developments taking place concurrently from both a governmental and private real estate market perspective. With all of these changes, it can be challenging to stay up to speed when it comes to how certain changes will impact you and your business. Not to worry, here’s a brief overview of the latest key updates across the state of Connecticut so you can plan accordingly.

Tax Deferrals Offer Relief

Connecticut Governor Ned Lamont signed off on Executive Order No. 9R in mid-December permitting taxpayers to defer their second installment of real estate, personal property and supplemental motor vehicle taxes. The legislative action is intended to provide much-needed assistance to taxpayers seeking tax deferral as a result of widespread furloughs, layoffs, business closures or similar circumstances associated with the coronavirus pandemic that has led to financial stress for countless Americans. However, it depends on the individual town in which you reside as to whether the deferment will be interest free—which is the case in Suffield, South Windsor and Bloomfield—or at a reduced interest rate—3% or less to be exact in both Berlin and Enfield. It is also determined on a town-by-town basis whether or not you have to apply for deferment or if everyone is eligible for the deferment. To reference your specific location, a statewide index of municipalities in which blanket deferment or low-interest rates is accessible on the Office of Policy Management website.

At the pinnacle of the coronavirus pandemic in April 2020, Governor Lamont implemented Executive Order No. 7S, which mandated that municipalities had to either defer July 1 tax payments for three months with no interest from the time they were due or reduce the interest rate by 1.5% to 0.25% monthly. Per the latest executive order, the deferment and reduced interest initiatives are only applicable to new charges that were due starting January 2021 and does not provide amnesty for preexisting delinquencies. In places where taxpayers must apply for deferment, the household must prove a reduction in income of at least 20%, whereas a business must prove that its anticipated revenue will drop at least %30 over the course of the deferment period. For landlords, they must provide documentation proving that their properties will suffer a significant revenue decrease attributable to COVID-19 and are required to offer rent forbearance to tenants that is equal to the delayed tax and utility payments they receive.

Real Estate Market Update

Despite the chaos associated with the pandemic, the Connecticut real estate market has showed resiliency. With its sprawling, multi-million-dollar homes and pristine lawns, Greenwich, Connecticut has always been a refuge for wealthy hedge fund managers and the Wall Street elite. But the advent of the pandemic, a new influx of affluent New York City residents has flooded the town looking for more space and suburban security. Accordingly, Greenwich—which is less than an hour away from the heart of New York City—has experienced a dramatic uptick in property transactions, with brokerage firm Douglas Eliman reporting that the median home price is approximately $2.1 million, up 18% from this time in 2019. Even when the new real estate tax became effective in July that tacked on a 2.25% tax on the percentage of residential property sales totaling over $2.5 million, buyers at the top of the tax bracket appeared to be unfazed as the sales rate remained consistent over the summer and early fall months. Sales weren’t the only metric that experienced significant growth, with a strong demand for rental properties arising as the coronavirus continued to spread. Between March and August, there were over 60 residences in Greenwich that rented for over $20,000 per month, compared to under 20 going for the same rate last year.

Connecticut suburbs like Greenwich with car-dependent, luxury houses were largely stagnant when it came to sales activity during the financial crisis. Potential buyers at that time were focusing on walkability, wanting to be able to be within relative arms-reach of all daily essentials. But now in a pandemic setting, the priorities for buyers have shifted dramatically, with the emphasis now more on privacy and square footage. Real estate investors can expect this trend to continue well into the future with the rapid implementation of telework protocol and other risk mitigation factors that have considerably altered the ways in which people conceptualize their homes as joint residential and work/educational spaces.

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State of the Florida Private Lending Market

Since the onset of Covid-19, only a handful of commercial banks are still lending on mid-size construction projects in South Florida. As the pandemic swept the nation, South Florida lenders slowed or halted construction financing. This further staunched a development wave that had already begun to ebb. COVID’s impact on brick-and-mortar retail and hospitality brought a full stop to plans for many new shopping centers and hotels; the shift to remote working left banks and other firms wary of new office projects. In this reactionary market, commercial lenders have implemented stringent requirements and stress tests, which have made lenders acutely aware of their need to manage risks. An expected result is the wide opportunities for private lenders, family offices and private funds in the real estate lending space.

Private Lenders are focusing on experience, particularly with borrowers that have been through market cycles to show that they have behavioral performance, or acted accordingly to whatever obligations that they had on financing circumstances. Borrowers that come with a lot of experience generally know how to anticipate the risks that are inherent in development. Private lenders are able to understand that borrowers that know how to protect themselves as the investor automatically protect the lender at the same time.

The soaring South Florida housing market has been well documented. While starts on multifamily condo and rental projects were down significantly in the third quarter — with 2,055 units in 2020 down almost 38% from 2019 — they’ve picked up since October, according to Ned Murray, associate director of FIU’s Jorge M. Pérez Metropolitan Center. Construction starts already are set to be up about 30% in the fourth quarter of 2020 over the same period in 2019. More than half are in the city of Miami.

In the SFR market, sales volume and prices soared in October of 2020 as both grew by double digits across South Florida’s housing market, according to the Florida Realtors. Additionally, single-family home sales increased 24.4% to 4,800 in the region when compared to the same month year of year. The median sales price grew 17.8% to $424,250. Statewide, there was plenty of demand as well. Sales of single-family homes were up 26.9% while the median sales price increased 15.6% to $305,000.

As mentioned in our previous article that discusses the opportunities in the Florida Fix and Flip Market, investors are flocking to the Florida fix and flip space to take advantage of the astronomical demand. Private lenders have recognized the opportunity and have expanded and will continue to expand into the Florida market in the upcoming months.

If you are in need of an experienced real estate or private lending attorney to help you navigate your next transaction, the attorneys at the Law Offices of Lawrence Andelsman P.C. are here to help. Reach out to us today to see how we can partner together on your next loan. We are here to help guide you in the right direction.

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COVID-19 Creates Opportunity for Your Dream Investment in New York

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.

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COVID-19 Migration Creates Unique Fix-and-Flip Opportunity in Florida

Real estate markets do not react favorably to uncertainty. With the presidential election looming and the continued COVID-19 pandemic impacting the economy, there is a substantial amount of continued uncertainty in the cards for the foreseeable future. It is clear that both urban and suburban markets will see wide ranging and disparate instability as a result.

With Mortgage rates at historic lows the demand for housing is at the highest levels in the last 25 years. This demand has caused a shortage of housing inventory in highly desirable suburbs and non-urban areas. Developers and builders nationwide have focused on these opportunities with new projects and investments.

Invitation Homes, one of the nation’s largest rental-home development companies recently announced plans to invest over $1 billion on acquiring SFR units in key markets primarily located in Florida and Texas. Further, a recent report on U.S. home flipping statistics compiled by ATTOM Data Solutions indicates that while the use of the fix-and-flip investment strategy declined from 7.5% to 6.7% of all home sales on a nationwide basis, the gross profits of these flips spiked nearly 8% higher from the first quarter to the second quarter of 2020—which is over a 10% annual increase from 2019.

Florida has the fourth highest population in the US. The recent market trends have seen a boom in the fix and flip market in Florida. Before the pandemic, increased migration was trending upward based upon factors including the absence of state taxes, lower population density, great weather and more wide-open space. The health and financial concerns from the pandemic have only made Florida more attractive for those seeking to flee urban areas throughout the country. Clearly, Florida fix and flips and multi-family investors will profit from an array of trends impacting migration.

Across the United States, homebuyers are moving to locations that offer lower tax markets and increased employment opportunities. With Florida governor Ron DeSantis lifting restrictions on the Sunshine State’s restaurants and other businesses, there has been an unfettered return to business as usual which appeared to synch with earlier predictions by real estate experts that Florida would prove the fastest to emerge from the COVID-19 crisis. 

At the Law Offices of Lawrence Andelsman P.C., our expert attorneys will guide you and provide you with the direction and counsel needed in the commercial and private lending space. We offer a wide vary of services that include nationwide closing and settlement, commercial and private lender representation, review and negotiation of master loan purchase agreements and filing and structuring legal business entities. To learn more about how our attorneys can help you with your next fix and flip deal, reach out today! 

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Expanding Your Reach Outside the New York Market

Tips for Hard Money Lenders

More than ever there are abundant expansion opportunities for hard money lenders outside New York City and the Boroughs. Due to the significantly decreased demand, the shutdown of the NYC economy, severe legislative restrictions on property owners, and general mass exodus out of the City, real estate investors are targeting locations all over the country as an alternative. Here are a few general pieces of advice for hard money lenders looking to expand their business operations outside of New York City.

Educate your team on desirable locations and trends in investment and development outside the NYC area. Initially concentrate on a single location and seek to tailor your lending services to accommodate the local lending needs in that given area. Research the general competition and availability of private money in those areas and target those areas with fewer hard money players. The tri-state area is extremely competitive with an abundance of lenders, this is not the case in many areas throughout the country. Utilize your established network to gain contacts in the targeted areas.

In addition, pivot your business approach and develop direct contacts with local brokers, investors, attorneys, and real estate professionals through LinkedIn. Through these communications, you will quickly learn the lending demand in these markets. Bringing knowledge plus established speed and efficiency to markets not accustomed to such could be eye-opening and create immediate opportunities.

If you are looking to expand your lending business into new areas, reach out to Andelsman Law today. We specialize in helping leaders grow their businesses nationwide utilizing our expansive nationwide network of real estate professionals, investors, lenders, and capital providers.

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Expanding Your Reach Outside the New York Market: Tips for Hard Money Lenders

More than ever there are abundant expansion opportunities for hard money lenders outside New York City and the Boroughs. Due to the significantly decreased demand, the shutdown of the NYC economy, severe legislative restrictions on property owners and general mass exodus out of the City, real estate investors are targeting locations all over the country as an alternative. Here are a few general pieces of advice for hard money lenders looking to expand their business operations outside of New York City.

Educate your team on desirable locations and trends in investment and development outside the NYC area. Initially concentrate on a single location and seek to tailor your lending services to accommodate the local lending needs in that given area. Research the general competition and availability of private money in those areas and target those areas with fewer hard money players. The tri-state area is extremely competitive with an abundance of lenders, this is not the case in many areas throughout the country.  Utilize your established network to gain contacts in the targeted areas.

In addition, pivot your business approach and develop direct contacts with local brokers, investors, attorneys and real estate professionals through LinkedIn. Through these communications you will quickly learn the lending demand in these markets. Bringing knowledge plus established speed and efficiency to markets not accustomed such could be eye opening and create immediate opportunities.

If you are looking to expand your lending business into new areas, reach out to Andelsman Law today. We specialize in helping lenders grow their businesses nationwide utilizing our expansive nationwide network of real estate professionals, investors, lenders and capital providers.

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How Real Estate Professionals Can Get Ahead During This Time

 

 

 

 

 

With no foreseeable end in sight when it comes to the ongoing pandemic, many real estate investors are pondering whether the timing is right to add properties to their portfolio given what is and will likely continue to be a very unpredictable market.
Real estate investors are likely to find more good deals on homes than under previous normal conditions. there are a multitude of very motivated sellers out there that are eager to prevent their property from lingering on the market. But how do investors account for the risks that rental property landlords face in the current coronavirus era?
As you analyze the market and determine whether to invest in real estate while the coronavirus pandemic is still continuing, it’s important to take into account the following opportunities and their associated risks carefully, and then conduct your own specifically tailored personal risk-benefit analysis to choose your next move.

Opportunities Abound for Real Estate Investors

Initial reports garnered from data compiled by the National Association of Realtors (NAR) indicates that a significant majority of buyers have exited the market as compared to sellers. By the end of March 2020, approximately 48% of real estate agents claimed they had buyers withdrawing, whereas only 16% of sellers claimed they had chosen to take their listings off the market due to COVID-19.
This means that the housing sector is already experiencing the tenuous balance between supply and demand shift considerably in the favor of those looking to acquire real estate. With dissipating demand and a relatively stable supply base, great deals can be found in virtually every locale with the right motivated real estate investment mindset.
There are some home sellers with the financial base who can afford to wait out this challenging period. However, the vast majority are experiencing an urgent need to sell due to the fact that they cannot make multiple mortgage payments on vacant homes. These individuals need to sell now, even if it means drastically lowering their initial asking price.
These types of extra-motivated sellers create an invaluable opportunity for real estate investors. Motivated property owners have always comprised the majority of great off-market transactions, and in the near future, many sellers will find themselves with no other alternative but to accept reduced offers due to the relative lack of home-buying demand in most local markets. That makes this an ideal time for real estate investors to go after distressed sales and be aggressive during the negotiation phase of transactions.

Understanding the Risks

Notwithstanding the obvious upside, real estate investors and rental property landlords will experience very real risks and challenges in the current market environment caused by the coronavirus. Prior to shelling out hundreds of thousands of dollars or more on an investment home, ensure that you fully comprehend the wide-ranging impacts of the coronavirus pandemic on the real estate investment industry.
One of the main risk factors is the comparable lack of exit options. Put simply, you don’t want to find yourself in the same predicament as the aforementioned extra-motivated sellers. The last place you want to find yourself from an investment perspective is being forced to sell during the coronavirus. This risk is particularly evident for house flippers, as well as for any rental investors who typically garner capital by selling off properties from their portfolio to fund future projects. Landlords will also face the dual risk of eviction challenges and increased default rates. With unemployment skyrocketing many renters simply will not be able to afford rental payments and several states and cities have accordingly placed temporary suspensions on eviction proceedings while others have closed civil courts—preventing landlords from conducting a rent hearing which is a required step in the eviction process.

Mitigating the Risks

How can real estate investors proactively shield themselves from these risks in order to seize the unique opportunity presented by the COVID-19 impact on the industry? First, they should consider prioritizing investments in jurisdictions that have implemented ordinances that favor landlords. Having the option to evict in the event of a default is a lifesaver for real estate investors so it can pay off down the road to direct your investments to areas that allow for that method of financial relief.
It will also pay off to maintain adequate cash reserves as investors with deep pockets will inevitably come out ahead in this environment. Those will little liquidity will find themselves both unable to participate in the market dip and financially strapped when they face rent defaults or extended periods of vacancy. To avoid this, be sure to set aside enough cash to cover several months of unpaid rent for each investment property in your portfolio and keep an eye on your emergency fund as you may well need to rely on it in the coming months where things are still largely unpredictable.
At Andelsman Law, our attorneys are committed to advising and representing real estate professionals in a wide variety of real estate transactions. If you would like help navigating your next deal, we would love to partner with you.

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New York Market Shows Early Signs of Recovery

After several trying months, the New York City real estate sector is rebounding. Following the city’s phase 2 reopening phase, data sourced by UrbanDigs indicated that contract activity ramped up 41%, hitting a new peak since the nationwide shutdown in March in response to the COVID-19 pandemic. The numbers also showed the volume of new listings also jumped 57%, which is the highest mark since the first week of March.

While the total number of listings has decreased by 36% since this time in 2019, brokers are optimistic the downward trend in the city’s real estate market will be short-lived. Real estate professionals fully expect that the pent-up demand resulting from months of mandated quarantined will translate into increased transactions in the near future.

Market data compiled by GS Data Services indicates that the median listing price is approximately $1.39 million, which is 5% greater than the previous year, whereas the average price-per-foot fell a mere 3% to $1,560. Real estate professionals say this data suggests that the recovery process is well underway on the listing side and is exhibiting the V-shape trend that was expected earlier in 2020.

Other major metropolitan real estate markets are showing similar activity—particularly in Miami, which has experienced a significant jump  in property trades since the preceding year, as a large number of Northeastern residents—especially those residing in the greatly-impacted tri-state locality—opted to move to Florida in search of more favorable housing costs.

Between June 1 and June 27, a total of 217 contracts have been executed in Manhattan alone, which is 71% less than this time a year ago per GS Data Services reports. This should be unsurprising, however, considering that the city only reopened for in-person property showings mid-way through the month. Aggregated market data shows that prices have not decreased as drastically as some might have expected in light of the coronavirus. Some within the industry had speculated that listing prices would plummet anywhere between 10% and 20% according to Garrett Derderian, the CEO of GS Data Services, but those conditions simply have not materialized. Conversely, there may be a promising aspect for the significant majority of the Manhattan market as employees could potentially seek to be less reliant on public transportation options and walk for their work commute. This could ramp up demand for a significant majority of the Manhattan market and equate to increased property prices in certain neighborhood and price brackets. The same principle is applicable for central Brooklyn and adjacent communities.

If prices do eventually decrease, it will most likely be in July after there is more development in the market. Another condition that brokers find encouraging is that buyers looking for real estate appear to be fully committed to the process. Due to the short-term market uncertainty as the virus continues to spread at exponential rates, the typical profile of the buyer is one who is interested in the near-future potential and is planning on investing in the long term.

While these early indicators all point towards the market is on its way to recovery, it is undeniable that the process for showcasing and purchasing property has been altered as a result of COVID-19. Potential buyers have to jump through multiple hoops including scheduling a viewing 24 hours in advance, wearing personal protective equipment, sign off on a myriad of paperwork accepting the health risks they’re assuming and avoid coming into contact with any surfaces while viewing the property, with the seller’s agent having to open all the doors and cabinets. Regardless, industry professionals feel that New Yorkers are eager to move on with live post-COVID 19 and expect there to be a continued rampant growth in transactions in the upcoming months. Are you in the market to purchase real estate? Having an experienced legal team with a proven track record is essential for a successful transaction. At Andelsman Law, our team will assist you through all stages of the process and are committed to remaining accessible and providing you with the best possible experience. Contact us today via email (info@andelsmanlaw.com) or phone (516) 625-9200 to find out more about how we can assist you.