Category Archive: Market Trends

The Major Unknowns in the NYC Real Estate Market During COVID-19

Team Leader. Russ Putterman, video chatted with Noah Rosenblatt of Urban Digs at the end of March to discuss the state of the NYC marketplace as well as the unknowns through the ongoing COVID-19 pandemic. Urban Digs is a real estate service provider that helps brokers to find comps, past sales and recent market analytics in NYC neighborhoods. We’ve compiled some of the findings from this discussion that are important to know as we face the current stay-at-home order in NYC. 

What is currently happening with the market and is anyone buying?

  • Prior to the current situation, NYC seemed to be on trend to come out of a buyer’s market – This is certainly not what was expected for the spring market. As it relates to the Manhattan real estate market, there is a lot less activity happening right now. The extent of activity includes digital activities such as signing online listing agreements, holding virtual open houses and video conferencing with clients but albeit, much slower. There are certainly people that are very serious in selling and buying for various reasons and those are the connections who are primarily engaged with this slow market at the moment. 

Is there a noticable dislocation?

  • We have many deals going into contract that were already in negotiation before it got to this level. Just like any market there is supply and demand – depending on location, there will be people willing to continue with transactions – especially when there is a big buyer’s market going on. 

What should buyers and sellers expect over the next couple of months?

  • We will likely see more people pause on moving if it is not essential. For buyers who have immediate interest, we recommend taking a look in a couple of weeks as we continue to digest the constantly shifting updates throughout the nation. Assuming things settle out over time, we will have inventory to look at then and there will be more liquidity in the market. 

How is the Focus Team running in a paused environment?

  • Our team is in constant communication and continuously does team activities through video chat. No matter the market factors, it’s still important to set goals and block time throughout the day to organize priorities. We are being very mindful about the transactions that are coming in during this time and planning remote closings and calls with our clients. 

 

To view the full podcast with additional market trends, click here. Our team is available to answer any questions as we continue to navigate these trying times. 

 

Stay ahead of the curve as we emerge from this together.

Talking Manhattan – The Buyer’s Market

How much leverage do buyers have in the current market?

Our very own team leader, Russ Putterman, met with Noah Rosenblatt of Urban Digs back in October to discuss the state of the NYC marketplace. Urban Digs is a real estate service provider that helps brokers to find comps, past sales and recent market analytics in NYC neighborhoods. Insights that were taken away from this discussion include:

  • We are in a buyer’s market – The market is moving in a cyclical approach. However, buyers have more leverage at the moment. Homes are not selling like they did in 2008, but if the property is priced properly, it will move. The real estate market is not slowing the stock market down which can sometimes be the case.
  • Some other factors that have recently influenced a buyer’s market include:
    • There is currently a lot of inventory
    • The dollar getting stronger and this had made a notable impact on foreign investment
    • There is still uncertainty around taxes since plans may not be confirmed until springtime.
  • What does buyer behavior look like today vs. a couple of years ago? Buyers are actively looking and have interest in purchasing homes. However, the pool is getting smaller. People are not bidding as aggressively. A couple of year ago, an open house could have consisted of 50-60 people where now a large pool seems to be in the range of 15-20 people. Back in early 2010s sellers were often getting there ask where now, where now sellers are having to come down on ask. This is currently a tough market for “aspirational sellers” and the sense of urgency from buyers has faded away.
  • Is this market an investment opportunity for buyers – There is most leverage in new development.

The fully aired Urban Digs episode can be found here.

Connect with Focus Today!

If you are interested in learning more about buying in NYC or Long Island, contact us today and we will connect you with one of our Specialists. If you’d also like to learn more about the buying process in NYC, download our Buyer’s Guide today!

2018 Market Trends and What to Expect for 2019

Real Estate Carpool: Episode 1

On December 20th, the Focus Team conducted their first ever Real Estate Carpool. Our team lead (Russell Putterman) and LI Expansion Partner (Matt Lenner) answered burning questions on the 2018 real estate market, trends to expect for 2019 and much more. Here are our biggest takeaways from the carpool:

Carpool Real Estate
  • It is a buyer’s market in both the suburbs and the city
    • Matt identified that it used to be a seller’s market in Long Island, but has shifted to a buyer’s market – especially for the luxury segment. It is important to have an up-to-date home to ensure that prices are not dictated by buyers.
    • NYC is also seeing similar trends for the luxury market and foreign investments have decreased over the years. Price points are also lower, which is giving buyers more leverage. Mortgage contingencies are actually becoming more popular on buy-side deals as well.

If you are looking to buy, download our NYC Buyer’s Guide for more info >>

  • Fed rates have raised yet again
    • The market and consumers saw this coming and we are still at a historically all-time low – even at 5%. The team is surprised to see the feds raise the rate again, but anticipates for this to level out over time.
  • What was 2018 like for the Focus Team and projections for 2019?
    • The Long Island team had 60 transactions and are expecting to see upward trends for the 2019 period.
    • The NYC team saw similar numbers to the year before even with major market shifts. The team implemented many systems for automation and growth throughout the year.

The Focus Team approach affords our clients a concierge experience through our expertise in specialized roles to provide an unparalleled level of service throughout the buying, selling and leasing process. To learn more about our team or to book an appointment with us today, contact us.

To view the full episode, you can view below and please let us know if you would like to see any other topics in future videos: