The coronavirus has dealt an unprecedented blow to Manhattan's real estate market in recent history, and the prospects for a near-term recovery remain uncertain. The number of apartment contracts signed in June, the latest indicator of buyers' appetite, fell 76% from the same period last year.

City-wide residential transactions declined 43% year over year, from 11,413 to 6,534 sales, as all five boroughs recorded a decrease in the number of transactions. The average New York home selling price in the second quarter of 2020 was $ 975,806, down 13% year-over-year.

“This dramatic decline is an SOS for federal, state and municipal officials. The report confirms how vulnerable the residential real estate market is as it recovers from the devastating impact of the coronavirus pandemic, ”said REBNY President James Whelan. “As we seek to restart New York's economic engine, it is critical that we receive federal assistance and focus on smart policies that create jobs and encourage private sector investment that will generate much-needed tax revenue.

Citywide, transactions declined in each of the condominium, co-op and one to three PMQ categories. City-wide condominium transactions fell 57% to 1,248 units; city-wide cooperative transactions declined 60% to 1,321 units; and transactions of one-to-three family homes across the city fell 24% to 3,965 units.

The real estate industry, which serves as a fundamental engine of New York City's economic engine, accounted for more than half (53%) of the city's total annual tax revenue in the past fiscal year. The industry employs hundreds of thousands of New Yorkers, from construction workers to brokers, and generates essential income for New York City to maintain salaries for first responders, fund infrastructure upgrades, and provide services audiences such as schools, libraries and parks.

Other key findings from the Q2 2020 Quarterly Residential Sales Report include:

- City-wide condominium sales volume fell 64% year over year to $ 2 billion.
- City-wide co-op sales volume declined 65% year over year to $ 957.7 million.
- The city's 1-to-3 family home sales volume declined 25% year over year to $ 3.4 billion.
- Manhattan posted the largest year-over-year decline of the five boroughs, both in total sales volume and transaction volume, at 66% and 62% respectively.
- REBNY reports 9,320 active listings and 3,231 contract listings in Q2 2020 in Manhattan and Brooklyn, which is a 9% increase and a 32% decrease from Q1 2020.

There could be more lasting changes in the months to come. The share of cash buyers has fallen to 41%, from an average of around 50% in recent years, Miller said. This could have major implications for the luxury market, which had been supported by investment buyers who typically bought without financing.

The market could return to a semblance of normal by the first quarter of 2021, said Garrett Derderian, managing director of GS Data Services, a real estate analysis company. But that will depend not only on whether the city experiences another wave of infections, but also whether the state decides to raise income taxes to fill budget deficits linked to the pandemic.