PODCAST: Miami Real Estate Agent David Siddons Interviews a Top NYC Realtor

Interview Timeline

• Minute 0-4: Introduction of Monica Novo and her relationship with David Siddons
• Minute 4-6: The status of the NYC real estate market before the Corona virus
• Minute 6 onwards: The effects of the Corona virus on the NYC and Miami real estate markets and both agents’ forecasts of the market

Interesting Take Aways from this Interview

The Effect of Covid-19 on the NYC & Miami Real Estate Markets

New York City and Miami recorded a really strong first quarter of 2020. The market had corrected itself from a mediocre 2019 and started getting stronger again with very busy open houses and renewed confidence. Monica took on $15M in new listings in a two-week time span while the David Siddons Group in Miami closed $30M in properties just in January.

Since the start of the Covid-19 Pandemic, NYC is experiencing a serious break in the market. The virus is affecting the real estate market since nobody is allowed to work or to show properties anymore. Of course, NYC realtors are offering virtual tours and videos, but we also have to acknowledge that nobody will buy any property without having seen it in person. So the reality is that despite these virtual tours and videos we are still not going to sell anything right now. On the bright side, people are definitely looking and buyers are moving, but just not at the same pace as in the beginning of the year.

Covid-19 and the Reactions of Buyers/Sellers

Just like in Miami, NYC has not seen many price reductions. Some buyers think this is the time to get deals, but this is not the type of market nor the time to get deals. Sellers are not accepting low ball offers and realtors are still very bullish on the months to come after the virus fades away. What we do see is that some buyers are trying to take advantage of the situation by renegotiating deals. Although this happens, the discounts are limited.

Most sellers (and all of Monica’s) are leaving their property on the market, because they do no see a good reason to take it off-market. Buyers are still looking, and although they cannot make a move, they are looking for properties online. Why would you take the property off- market and miss exposure to those potential buyers?

David and Monica both agree that this is not a financial crisis and this is not the same situation as in 2008. The banks are not collapsing and they are still giving out loans. The interest rates have just been lowered to 0.25%, which is almost free money. Buyers can easily take advantage of this and get almost free financing for a good property. The upper-end of the market, the ones who barely gets affected by economic changes, are still looking for properties and both in NYC and Miami we still see a lot of money coming in.

Although nobody knows exactly what to expect, most sellers are waiting to see how the market will perform after the virus. Both Monica and David believe that the market is just being postponed and once the virus is over those who postponed buying and/or selling will all become active again creating a very strong market.

David mentions he still gets a lot of calls from relocating families from the high-tax states (mostly from NYC) that want to move to Miami. Besides real needs to move, many of these relocation buyers are seeing such a potential benefit from the move that postponing it any longer will costs them hundreds of thousands of dollars.