Covid-19 has dealt a blow to New York’s luxury real estate market that is worse than the 2008 financial crisis and the 9/11 terrorist attacks.
The virus plowed into a market that was already scuffling, and industry pros now say that to encourage deals they may have to provide additional discounts that will sink prices even further, according to the Wall Street Journal.
Luxury properties sold in the second quarter showed an 11-percent price drop, the Journal noted, citing Douglas Elliman. New listings were also down, by 21 percent, while new listings priced at $4 million and over fell by about 35 percent, according to the Elliman data.
But besides having to adjust to virtual showings and the general drop in interest among potential high rise condo buyers — many of whom have opted for the Hamptons and Cape Cod outside the city — Manhattan agents also have to be mindful of the toll the virus has taken.
“Calling people now, it could be like calling them after shiva or after a funeral,” Ran Korolik, a Victor Group partner, told the Journal. “You don’t know who died or how people were affected by the situation. Maybe their client didn’t take a salary this year.” [WSJ] — Sasha Jones