In the lead-up to the presidential election, New York City’s real estate market is witnessing an unexpected surge, contrary to the typical national trend of a slowdown before elections, according to a report from Fox News Digital. Real estate activities in the New York metropolitan area are experiencing what is termed as a “pre-election bump.” Miki Naftali, Chairman and CEO of the Naftali Group, noted the significant difference compared to four years ago, stating that in 2019 the market remained relatively inactive without a noticeable increase in sales.
Alex Witkoff, co-CEO of The Witkoff Group, also commented on the unusual upsurge in buyer interest and sales momentum. He attributed this to buyers’ awareness of securing desirable real estate amid anticipated regulatory or economic shifts post-election. The Witkoff Group’s One High Line in West Chelsea has notably doubled its sales activity in October compared to the summer.
Naftali explained that during the COVID-19 pandemic, developers hesitated to purchase, design, or develop properties due to economic uncertainties and limited commercial bank lending. As a result, there is now a demand for quality products amidst a scarcity of inventory. Naftali suggested that while the election holds global interest, it is not the sole focus for consumers.
Naftali predicts a decrease in mortgage rates over the next two years, prompting many to believe that now may be the best time to purchase when competition is relatively low. Despite a rise in the 30-year fixed mortgage rate to 6.72%, there is accelerated buyer activity at One High Line ahead of the election.
Betting markets have been favoring former President Donald Trump in the upcoming election, offering him a 58% chance of winning over Vice President Kamala Harris. However, real estate developers appear to be cautious in linking the market’s current upswing directly to electoral outcomes, instead attributing the growth to underlying factors like increased demand and favorable rates.
Developers maintain that buyers are prioritizing fundamental factors such as school zones, job opportunities, and quality of life when deciding on real estate investments. Despite the political landscape, regulatory impacts on luxury developments, such as One High Line, are expected to remain minimal. Naftali and Witkoff emphasized the market’s focus on supply and demand dynamics and the city’s inherent offerings, rather than on federal government actions.
Naftali expressed skepticism about the impact of Harris’ proposed first-time homebuyer credit, arguing it may not significantly influence top markets like New York and Miami, where property prices far exceed the $25,000 credit. He pointed out Trump’s background as a developer in New York, suggesting he possesses a better understanding of real estate dynamics.
Naftali concluded that substantial government involvement would be necessary to address the increasing demand for new apartments across the U.S., and highlighted Trump’s continued engagement in real estate through his family members.
