It is no secret that Covid-19 has had a profound impact on all business ventures across the globe, and while some might be smiling on the way to the bank, many have experienced the worst possible scenario. Many have even closed shop while others are hanging by a thread. Like many other businesses, the housing market in Albany, New York, has also felt the pandemic’s effect. If you are in the market for a new home, you are probably wondering how exactly the pandemic has affected the New York housing market.
Migration to the Suburbs
Living in the midst of the masses has proven to be a risky endeavor with the Covid-19 virus thriving in populated places. This has prompted people to migrate from the highly populated capital district of New York to the less occupied suburbs. New Yorkers are retreating to areas such as the following to keep safe from the dreaded virus:
- Upper Montclair
- Greenville
- Bronxville
- Chappaqua
- Jericho
- Great Neck Gardens
- Ridgewood
- Kensington
- Great Neck Plaza
- Syosset
Since the virus outbreak, some New York suburbs have seen a sudden surge in the number of people moving in. New Jersey, Connecticut, Westchester County, and Long Island are some of the city suburbs that have welcomed hordes of migrating New Yorkers. According to Miller Samuel, a real estate dealer, the suburbs have recorded a 44% increase in house sales compared to last year.
A Huge Drop in City House Sales
With the safety exodus to the suburbs, the city homes are almost empty. New Yorkers are opting to spend big on the spacious yet less populated suburb homes rather than dwell in the virus prone townhouses. Consequently, according to Miller Samuel, the city center, especially Manhattan, has seen a 56% decrease in the number of houses sold. Townhouses have lost the pre-covid-19 colossal demand.
A Heightened Demand for Suburb Homes
The New York suburbs have seen a rooftop demand for homes with town folks looking to escape the Covid-prone city center and acquire enough space to support the work from home arrangement. Consequently, the competition for the available properties is quite stiff, and of course, real estate entities are reaping big time. Around July, a $ 285,000 three-bedroom home in East Orange had around 97 showings with 24 offers and was eventually grabbed for 21% more than the initial market price.
In another case in Long Island, around six people made an offer for a $ 499,000 house in Valley Stream without an onsite visit; they based their trust on just a live Facebook live video.
A Sudden Increase in Value of Suburb Properties
The high demand for suburban homes has, of course, come along with an increase in the value of these properties. Most of the available properties have not only attracted the attention of many New Yorkers but have also seen their prices shoot up. With one home attracting several suitors, the only way to kill the competition is to increase the contracting prices.
Heightening of the Housing Market Inequality
Covid-19 came along with countless unappealing economic repercussions that have directly or indirectly impacted the housing market not only in New York but also all across the country. Million have lost their jobs and can no longer access safe and stable housing. Even worse, the exodus to the suburbs is limited to those economically better placed in society. The rest of the population has little to show, but months of unpaid rents that they are not sure how they will pay.
Take-Aways
The current housing market in New York is an absolute circus that many might find hard to keep up with. While prices in the suburbs are increasing, the low interest rates still make it a bargain. There couldn’t be a better time to invest in a new-build home. Amedore Homes has various developments in the Albany area. Contact us today if you’d like more information on the home building process!