NYC’s Real Estate Sales Picked Up In January As Market Slowly Warms
SOURCE: The Real Estate Board of New York
As the coronavirus pandemic rages on, New York City capital markets are showing signs of life as sales volumes continued to rebound in January.
According to the Real Estate Board of New York’s monthly sales report, home sales of over $ 6 billion were completed last month, up 21% since December and 38% year over year. It is the second highest month of sales since the pandemic last March, which practically freezes the commercial market for the typically busy spring months.
“It is critical that elected officials continue to focus on continuing this dynamic by providing additional federal assistance, ensuring successful vaccinations and rapid testing efforts, and demonstrating leadership with actions that encourage job creation, private sector investment and a promote a good quality of life for all residents. ” REBNY President James Whelan said in a statement.
The sales added $ 207 million in property tax revenue to the city’s coffers, a 6% decrease from last year but a 17% increase since December.
“As New York City continues to face major challenges, tax revenues generated by the resurgence of real estate market activity will be central to the city’s economic recovery and funding of basic government services that millions of New Yorkers rely on,” said Whelan.
Overall, pandemic-era sales peaked at over $ 6.2 billion in November and fell to $ 5 billion in December, according to REBNY.
Investment sales rose much more steeply than residential property sales compared to the previous month. Commercial sales rose 49% from $ 1.9 billion to $ 2.8 billion between December and January. Home sales rose only 5% between the two months, from $ 3 billion to $ 3.2 billion.
However, the sales volume of residential real estate increased significantly faster than that of commercial real estate compared to January 2020. Residential property sales increased 77% year over year, while commercial property sales increased 11% over the same period.
In March, before the pandemic hit the market, sales were $ 6.9 billion. The market bottomed in May, hitting $ 1.8 billion before rising more slowly in the summer and fall.