I
n a departure from the typical slowdown in real estate sales before a presidential election, the New York metropolitan area is experiencing a "pre-election bump." This phenomenon has been observed by top developers Miki Naftali and Alex Witkoff, who attribute it to a growing sentiment among buyers that now is the time to secure prime real estate assets amidst potential regulatory or economic changes post-election.

    Naftali's The Henry on the Upper West Side and 255 East 77th Street on the Upper East Side have seen significant sales, while The Witkoff Group's One High Line in West Chelsea has seen twice the sales activity in October compared to the summer. Naftali believes that the current market is driven by factors such as increased demand, promising mortgage rates, and the continued appeal of New York City.

    The developers expect mortgage rates to cool significantly over the next two years, making it a good time for buyers to purchase. However, with the 30-year fixed rate rising to 6.72% last week, buyers are moving quickly to secure properties ahead of the election. Naftali and Witkoff agree that the market's current upswing is driven by factors beyond electoral outcomes alone.

    The developers also believe that the real estate landscape in New York prioritizes long-term stability over short-term policy changes. They expect either candidate to focus on getting the economy better and making sure everyone in America does well, rather than implementing policies that would significantly impact the luxury real estate sector. Buyers and sellers in Manhattan will likely stick to fundamentals such as school zones, job opportunities, entertainment, and quality of life factors.

    Naftali criticized Harris' first-time homebuyer credit, stating that it wouldn't make a significant difference in top markets like New York and Miami. He also praised Trump's background in real estate, saying he understands the challenges of being a developer and the importance of government involvement in creating new apartments to meet growing demand.