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Why Fear Is Stopping You From Buying In a Buyer's Market... |
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Some incredible news came out last week that there were over 800 price drops on NYC apartment listings since labor day. 800! That's the most in almost 12 years. One of the main reasons for that includes a large supply of inventory already on the market with more new developments reaching completion what seems like weekly here in the city. Sellers are anxious to sell and we're seeing prices at around the levels they were in 2012 as they have begun to correct after the purchase boom following the housing crash. Remember the Baron Rothschild saying, "If there is blood in the streets... time to buy." 800 price drops is pretty indicative for such a statement. Here are some of the concerns I've heard from buyers as to what has been holding them back, even in a market that is completely made for them: 1. "We are at the tail end of an economic cycle, one of the longest in history..." 2. "Interest rates are rising and that will dampen home pricing and equities..." 3. "The political environment creates uncertainty..." 4. "Home prices have risen too high, too fast..." 5. "Our debt levels at record highs are unsustainable..." Here are some thoughts on those fears: 1. Economic cycles are a reality, and a recession of sorts is inevitable at some point. How deep that recession may be is an unknown and it may be a more mild recession. This economic growth cycle started off very slow and has only accelerated more recently after the massive tax cuts. It could continue for some time. 2. We know that while interest rates are rising, they really are NORMALIZING to more realistic levels. Higher interest rates may slow the markets a bit and soften pricing escalation a bit too, but they are also good for investment income returns for individuals and large funds....that fuel localized entitlement accounts. 3. Political instability is nothing new. Life goes on regardless. Better to start living it ASAP than wait for 'perfect times': They don't exist and never have. These days our glorious new 24 hour a day media machine broadcasts EVERYTHING, preferably with a more salacious slant to garner attention. 4. Any price that rises too fast too far is bound to scale back at some point which is why we are seeing 2012 levels for pricing. We should also not forget how far pricing dipped in certain areas during the great recession and how far they had to rise .....simply to recover. 5. A fear of huge debts is higher taxes or higher inflation, or both. Inflation has reared its head although it never really went away entirely. Over time prices just keep going up, up, up. And real estate is one of the best hedges against inflation. When buyers see downward pricing in areas, some pause. Wait-and-see mode is comfortable. Some panic. Some ignore it. Some pretend it does not exist. Few people want to buy anything on sale when its 10% off.....human nature always hopes and waits for the 40% off sale. Usually they buy the 40% off sweater that is a size shmedium and doesn't fit great. As wages and material costs rise, building a home will continue to cost more. Never lose sight of replacement cost either. |
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Featured News |
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Manhattan Real Estate Is Now In A Year Long Correction The average price of a Manhattan apartment fell 4 percent during the quarter, to $1.93 million, while the median price fell 5 percent to $1.1 million. Great news for buyers. |
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The 10 Most Hyped New Buildings in NYC Read this article and be the coolest person at your next party talking about all the fancy shmancy new buildings around town! |
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Home Sellers Slash Prices Nationwide, NYC Real Estate Prices Drop There were over 800 price drops in NYC since Labor Day, the most in the last 12 years. It's like I said at the top, if you're looking to buy, now is the time! |
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Compass Raises Funds to a $4.4 Billion Valuation I would be remiss if I didn't share all the exciting news happening at Compass as the company just completed a Series F Funding Round of $400 million. I'd like to think its because I joined the firm that Softbank invested so much. |
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The New Status Symbol: Rugs in Unconventional Shapes I mean, who doesn't want an oblong, heptagonal rug in the middle of their apartment made of scratchy, uncomfortable material? |
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Couple Shocked to Find They Just Bought Infamous MS-13 House I promise if someone gets murdered in the house I'm showing you, I'll tell you about it... before we go. |
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Exclusive Featured Listings |
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Welcome home to your renovated converted 2-bedroom on the Upper East Side! This home features an exceptional living room space fit for entertaining and dining also with a converted second bedroom nursery. The modern bathroom boasts Carrera marble, stone flooring and Duravit and Hans Grohe fixtures. This high-end kitchen comes equipped with granite countertops, custom cabinetry and backsplash, and stainless steel appliances. In addition, there are custom built-in radiator covers providing additional storage, custom doors and hardware throughout, California Closet interiors, Lutron lighting system, recessed lighting, refinished dark wood floors, and baseboard molding. The apartment also boasts ample amount of closet storage. |
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Spotify Playlist: Acoustic Jams |
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Puppy of the Week! |
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Meet Zoey! She's fluffy, a snuggle monster and the worst guard dog of all time. She also likes scarfs, laying in the grass and belly rubs (I mean who doesn't). I met her parents Natalie and Colby through a random online rental posting. We worked together to find them a spot in TriBeCa, we hit it off and then I got invited to their wedding and now they can't get rid of me. Zoey is also instagram famous, follow her on all of her adventures @misszoeycatania |
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