Stores Closed, Store, Closed, City, Grunge, CloudyThe pandemic has not only hit New York City businesses hard but it is significantly impacting the real estate market. According to Mansion Global, New York City home sales fell by 50% in July on a year-to-year basis.

The pandemic seems to be having more than just a slowdown effect, but as reported on Counsellors blog, there is clearly an exodus out of densely populated urban areas.

According to the recent report, total residential sales came to $2.67 billion in July 2020. This represents a significant drop from the 5.3 billion reported in July 2019.

Believe it or not, though, it does show an improvement from June 2020, when the city reported only $2 billion in home sales.

It appears that this represents the bottom, potentially, in the real estate market for New York City, when in May $1.54 billion in home sales were reported.

The lock-down clearly had a significant impact upon New York City’s real estate market. During the lockdown, home tours were banned from mid-March until mid-June, crushing potential transactions in the city that has a healthy dependence upon property transactions.

According to the report, 2,568 homes were sold in July 2020. This compares with the 4,078 homes that were sold in July 2019.

Skyscraper, Houses, City, America, House FacadeRENTALS in New York City

Rental Payments Closing the Gap

According to the National Multifamily Housing Council, its rental payment tracker reported that 86.9% of renting households have paid rent as of August 13th. This represents a 10% Improvement over the prior week ended August 6th, when only 79.3% of rental households had made rent payment.

How strong an indicator is this? Well just consider that in August of 2019 for the same period, the payment ratio was just 2% more.

This indicates that a significant recession has possibly even been avoided by the actions taken by governments and by businesses to minimize the impact of the COVID-19 pandemic.

Additionally, the report indicated that even New York City, as a region, was able to show some stability with 79.8% of households making rental payments as of August 13th.

 

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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