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The age of Covid-era deals will soon be a thing of the past, as discounts are becoming not only more rare these days but significantly lower as well. As I reported earlier this month, 2021 has shaped up to be a record-breaking year in NYC real estate. Market recovery has been speedier than expected with demand outpacing inventory and bidding wars, above ask and all cash offers becoming all too common in almost all neighborhoods. This activity, needless to say, has impacted the attractive discounts we were seeing earlier this year, when the market was trying to regain its footing.

According to Donna Olshan, President of Olshan Realty, “the average discount on Manhattan properties—from the original asking price to the last asking price—has dropped from 10% to 5%.” While there are still fairly decent deals to be found in certain neighborhoods, discounts altogether will most likely be non-existent by the start of the new year. The dramatic price drops of 2021 that once were, will now be in our history books—a time period that has reminded us of the resiliency of the NYC housing market after a once-in-a-lifetime pandemic (hopefully for several generations) that dramatically halted almost all activity.

It is expected pent-up demand will carry over into the first quarter of 2022. We most likely will see a spike in activity now that fully-vaccinated international travelers will be able to enter the United States beginning November 8 and the dollar remains relatively weak. And while the discounts may not be as attractive as they were earlier this year, buyers are “betting that even modest price discounts make buying in the city a good bet for the longer term.”

History shows that NYC real estate has always been a smart, long-term investment and buyers are keeping that in mind as they snatch up what little inventory remains. With the holidays around the corner, we will see activity slow down in late November, but as always the case, a new batch of inventory will surface at the start of the year. If you’re looking to make a move before year end, please reach out to me as soon as possible. There are important timing considerations you should take into account, particularly sellers.
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Serjik "Serj" Markarian
Licensed Associate R. E. Broker
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My business is proudly built on referrals. Who do you know that I can help find their perfect home?
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