Fall 2020 Brooklyn Real Estate Market
We hope you and your loved ones are doing well as this strange summer comes to a close and we press forward into fall, where the only things certain this year are uncertainty and adaptability.
For those who plan to call our beautiful borough home, opportunity awaits.
Post-shutdown, Brooklyn experienced the pent-up demand we anticipated and serious buyers flocked to renovated properties at reasonable price points that offered extra living space, outdoor havens and multiple bathrooms, more often in boutique buildings and stand-alone houses enabling safe social distancing.
There has been significant movement within both the sales and rental markets. Some Manhattanites are seeking respite in Brooklyn, while other New Yorkers are heading for the ‘burbs and beyond. By and large, properties have been trading at or slightly below their asking prices, though Brownstone Brooklyn has experienced bidding wars, particularly for housing stock below the $2M mark. Properties above the $4.5M mark are having a harder time attracting buyers unless they are offered at a significant discount. Mortgage rates remain at historic lows allowing buyers to leverage their investing power.
Should we experience a resurgence of the virus this fall, we may see another dip in the market, but we expect it to be less significant than the first given that the shutdown was unprecedented, yet financial and mortgage markets stabilized and rebounded relatively quickly. The initial shock of the pandemic has softened and we are better positioned to handle a second wave. There is hope on the horizon for medical advancements, whether it be the development of a viable vaccine or the enhancement of antivirals and lab-created monoclonal antibodies to better treat people infected with Covid-19. For these reasons, we foresee a steadier state of the market moving forward—the upcoming election notwithstanding, which is another factor triggering uncertainty.
Buyers are generally shying away from properties that need work. Most people want a new home to make life easier these days. But for developers it’s an opportune time to buy property to build or renovate over the next year or two and launch in brighter days to come.
To ensure everyone’s continued good health, our team wears masks, regularly sanitizes our hands and surroundings, practices safe social distancing and gets tested for Covid-19 at regular intervals. If you don’t feel comfortable attending an in-person viewing, virtual 3D tours are available for most of our listings.
As always, we welcome the opportunity to offer you confidential advice and support on your real estate endeavors—contact us for more info.
