The high-end market may be hurting in New York City, but for those who want to pay less for a home, there is still competition.
On CNBC’s Squawk Box, Douglas Elliman chairman Howard Lorber said that it may take several years for New York City to recover — as many of its attractions remain closed — but his firm has still seen bidding wars for homes under $2 million.
In August, most new contracts signed for condos in Manhattan were between $1 million and $4 million, according to a report from Elliman.
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Lorber also sounded off on the city’s recovery from what he called a “temporary coma.” He didn’t buy reports of a permanent exodus from New York City, even as the Manhattan vacancy rate reached a 14-year high in July.
Broadway will remain closed until next year and more than 300 restaurants have sued the state for $2 billion due to restrictions on indoor dining. Lorber, however, is still optimistic about New York City, and said there is “plenty of value” in New York City.
New York City “hasn’t died,” he said. “I think New York is always going to be the place people want to be.”
Outside of New York City, Lorber said those who seek second homes or permanent relocation continue to see opportunities. Elliman has done significantly more business in Aspen, where Lorber said prices are on the rise with limited inventory. South Florida has also seen substantial price increases, especially for single-family homes, while there has been less demand for condos.
“It seems like people are gravitating toward single-family homes right now,” Lorber said. “It’s a combination of factors. But there’s plenty of good real estate for sale at reasonable prices surrounding New York City.”
[CNBC] — Georgia Kromrei