Has the Coronavirus Had a Major Impact on the Boro Park Real Estate Market?
With the enduring impact of the COVID-19 pandemic weighing heavily on people’s pockets, the effects are seemingly readily apparent as one walks down the street. To the average observer, there are more for sale signs on houses than ever before.
BoroPark24 spoke to stakeholders in the real estate market to get their take on what the situation really is.
Mr. David Levinson from MDL Real Estate explained that in his experience, there actually has been minimal change in consumer habits. He said that there was a minor slowdown in the beginning due to the government imposed ban on in-person showings but now that live viewing of apartments is allowed once again, the market is returning to normal. Mr. Levinson said that “no major impact as of yet in my opinion.”
Eretz Realty’s Naftali Handler related that he has actually seen an uptick in the market and an increase in inquiries and sales. Not only has there been increased interest in the properties available, he said that he is actually seeing buyers willing to pay higher prices than before the pandemic with a few of his clients increasing their bids. Mr. Handler said that, “There is a tremendous jump. People really want to buy after Corona.”
Mr. Handler continued to explain that one of the main reasons that there has been such an increase in sales is because mortgage rates are currently very low so anyone who had the cash on hand for a down payment prior to coronavirus is eager to capitalize on the low rates.
According to Freddie Mac, a large lending bank, 30-year fixed-rate mortgages hit a new low this past week of 3.07% which is very encouraging to those looking to buy a home.
The impact is seen in the numbers as well.
According to available New York City Department of Finance data, there were 149 residential sales in Boro Park across the months of March, April, and May. June data has not yet been released. The average price of the homes sold was $666,113.
The impact of coronavirus has had other interesting impacts on the residential real estate market. There has been a new interest in virtual showings in which people can view a home over Zoom or FaceTime without ever stepping foot on the property to see it.
All in all, despite the seeming large number of homes listed for sale, things are still looking up in the Boro Park real estate market
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