A leading broker told CNBC on Tuesday that the revitalized New York City real estate market is experiencing robust demand and attractive prices in comparison to recent history. “All portions are transacting, according to the story I’m seeing. On “Power Lunch,” Christopher Kromer, a broker with Brown Harris Stevens, remarked, “New York is back, and people want to be here.”” “We just had a record number of contracts signed in the second quarter, and the reason for that is that purchasers are finding value. They’re feeling an opening, and there’s a great sense of optimism for an economic boom when it opens up in September.” After the city’s real estate prices were dropped during the Covid outbreak, Kromer said potential purchasers can still find decent options. “If you’re buying today, it’s probably cheaper than it would have been three or four years ago,” he said. However, according to a recent analysis by Douglas Elliman and Miller Samuel, the median sales price for Manhattan apartments hit a new high in the second quarter. The average sale price increased by 12% to $1.9 million in the third quarter, with a 150 percent increase in sales compared to the same period previous year. Residents fled the city during the Covid pandemic, and brokers were mainly unable to show prospective purchasers homes in the second quarter of 2020, resulting in the worst percentage decrease in Manhattan apartment sales in 30 years. According to Kromer, the latest record median sales price is certainly influenced by luxury market characteristics. “I believe it is skewed due to a large number of high-end closings. Recently, the luxury sector has been booming, with several reductions.” The city’s high inventory levels caused by the epidemic have not been washed away by current activity in the luxury market, according to Kromer. “More realistic sellers and softer prices are driving this,” the broker explained. “Inventory levels are still near-record highs. As a result, the vendors are lowering their prices to meet the customers. The purchasers have choices.” Kromer, on the other hand, claimed that marketplaces in New York’s outer boroughs, such as Brooklyn, were “far more resilient” than those in Manhattan during the pandemic. “People were seeking for value, space, and less populated regions, and you didn’t see the same reductions in the outlying boroughs as you saw in Manhattan,” Kromer said. After receiving many offers, a handful of Kromer’s own listings in Queens and Brooklyn recently sold above asking price. According to him, one two-bedroom co-op in Brooklyn sold for roughly 8% to 9% more than it had been three years before. Kromer said a single-family home in Queens was “overwhelmed with inquiries.” “Within the first week, we had about 50 showings,” he said, adding that it sold for about 10% more than the asking price./n
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