n the beginning of the year, Brooklyn real estate looked very promising. As one of the hottest markets in the nation, Brooklyn was seeing record high pricing and a huge amount of buyer interest. However, the news of the COVID-19 outbreak has started to put a damper on Brooklyn real estate trends.
At first, experts assumed that the pandemic would only affect industries like restaurant and retail properties, since people still need homes even in a pandemic. Though there was a decrease in the number of sales, most people were still willing to pay high prices for a Brooklyn property.
However, as economic anxiety has spread to most families and businesses, there has been a corresponding decline in how much people are willing to pay for housing. Analysis of Brooklyn’s listing prices shows a slight dip in March and a steep drop off in April that forecasts a further decline. Though this drop will not be drastic, people can expect a decline of around 3 percent on housing values.
This drop in prices seems to be happening because many real estate agents are struggling to move their properties. Many buyers who are worried about their finances have pulled out of deals or asked for a longer closing time.
Though online listings and virtual tours can still generate some interest, the pandemic is making it hard to manage many of the steps of closing on a property. Many condo and co-op boards are refusing to meet with tenants or allow appraisers and contractors onto properties. It is also harder to get records and financial documents when most offices are minimally staffed and most employees are working from home.
With at least a month more of stay at home orders in place, most Brooklyn real estate deals will still struggle to succeed. This may lead to further drops in pricing as sellers become increasingly desperate to offload properties. Ultimately, the slight dip in prices and sales volume does not seem likely to stick around though.
With Brooklyn real estate remaining desirable, things are predicted to pick back up once the nation recovers. Those who are willing to be patient may find that it is still possible to sell and buy promising Brooklyn properties.