The Real Estate Board of New York (REBNY) recently released their monthly sales report for March and April 2020. What they are reporting in the report is a “dramatic” decrease in transaction activity for both investment sales and residential sales for March and April 2020 as Governor Cuomo announced a state of emergency in early March.
REBNY is tracking all revenue by each asset class as tax revenue is based on it. Their conclusion was that the entire industry is suffering and the statistics are “alarming”. Year over year, total investment and residential sales volume are down 60%. The tax revenue generated from these sales to City and State treasury is down 48% from April 2019 to April 2020 and a whopping 64% from March 2020 to the month being reported. The real estate sector is very important to the health of the overall New York economy as it is noted that real estate related taxes made up 53% of NYC tax revenue, generating a total of $31.9 billion in taxes.
With respect to investment sales, total consideration declined 71% ($580,086,523 in April 2020) from the same time last year ($1,994,489,728 in April 2019). Total consideration declined 85% from March 2020 ($3,895,859,813) to April 2020. Total transactions for the period dropped 61% from April 2019 to April 2020. Month to month there was a decline of 59%. Overall tax revenue dropped 71% year over year and 85% from March 2020 to April 2020.
Residential sales saw sales volume consideration drop 54% from April 2019 ($3,950,657,362) to April 2020 ($1,827,166,069). The monthly change was 40% as March saw consideration come in at $3,051,838,719. Total residential transactions declined 57% year over year and declined 46% from the last month. Overall tax revenue on residential sales dropped 30% from April 2019 to April 2020 and dropped 34% from March to April 2020.
BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.