Editor’s note: This article was first published in October 2021 and reflects market conditions at that time.
The New York housing market changed dramatically during the COVID-19 pandemic. First people left the city. Then they came back. Both moves pushed prices up.
The move out of the city
Early in the pandemic, many residents left the crowded metropolitan area. With social distancing in place and more people working from home than ever, buyers wanted quieter towns, more space and a neighborhood feel.
Much of that demand landed in upstate New York and in Westchester County. With more buyers than available homes, those areas became very competitive.
Homes sold in days
In the most sought-after areas, homes were staying on the market for a week or less, and some sold within 24 hours of being listed. Bidding wars pushed some sale prices as much as $100,000 above asking.
Location drove a lot of this. Even properties that still needed work sold at higher prices, because buyers wanted to be in those areas and were willing to pay a premium, sometimes in cash.
New York City recovered too
By late 2021, with vaccination rates rising and mortgage rates still low, the city’s own market was booming. People were returning, some offices had reopened, and discounted apartments were filling quickly. According to reports at the time, more Manhattan apartments sold in the third quarter of 2021 than in any quarter in more than 30 years. For sellers, that meant fewer requests for discounts and the return of bidding wars.
For investors
A fast-moving market rewards buyers who have financing ready. Sachem Lending lends in Westchester, Putnam and Dutchess counties. See our New York hard money loans page, or read about what’s needed to secure a hard money loan.
