Top 10 Spring Cleaning Checklist Items to Prepare for Listing Your Home in the Spring Market

Spring is the perfect time to list your home on the market, as the warmer weather and longer days tend to bring out more buyers. However, before you can list your home, you need to make sure it's clean, organized, and ready to show off. In this blog post, we'll outline the top 10 spring cleaning checklist items you should do to prepare to list your home during the spring market.

Declutter and Organize

One of the most important things you can do when preparing to sell your home is to declutter and organize. We cannot stress this enough! Buyers want to see a clean and spacious home, so make sure to remove any excess items, such as old magazines, books, and clothes. This will also make your move easier when it comes time to pack.

Deep Clean

Spring is the perfect time to refresh your home with a deep cleaning. Scrub the floors, walls, and baseboards, and do not forget to clean the windows, blinds, and curtains. If you don't have time to do it yourself, consider hiring a professional cleaning service.

Repair and Replace

Walk through your home and make a list of any repairs that need to be done. This could include fixing leaky faucets, replacing broken tiles, and patching holes in the walls. Also, consider replacing any outdated fixtures or appliances, such as light fixtures or kitchen appliances.

Paint

A fresh coat of paint can do wonders for a home, and it is a relatively inexpensive way to update the look of your home. Stick to neutral colors, such as beige or light gray, as they appeal to a wider range of buyers.

Enhance Curb Appeal

The outside of your home is the first thing buyers will see, so it's important to make a good impression. Make sure your lawn is mowed, trim any overgrown bushes, and add some colorful flowers to the front of your home. Also, consider power washing the exterior of your home to remove any dirt or grime.

First impressions are important when listing your home, and curb appeal is important for both listing photography and when prospective Buyers arrive

Clean Carpets and Floors

Dirty carpets and floors can be a major turnoff to buyers. Consider renting a carpet cleaner or hiring a professional service to deep clean your carpets. If your floors are looking dull, consider refinishing or replacing them.

Stage Your Home

Staging your home can make a big difference in how it looks to potential buyers. Remove any personal items, such as family photos, and add some neutral decor, such as throw pillows and vases. Also, make sure each room has a clear purpose and is arranged in a way that makes sense.

Buyers can have a hard time envisioning themselves in a home if all the rooms are empty. Staging brings the property to life in a relatable way.

Staging your home helps Buyers visualize the various rooms of the house

Check the Lighting

Good lighting can make a home feel warm and welcoming. Make sure all of your light fixtures are working, and consider adding some additional lighting to darker rooms. Also, consider replacing any outdated or unattractive fixtures.

Check the HVAC System

Buyers want to know that the HVAC system is in good working order, so make sure to have it checked by a professional. Also, replace any dirty air filters and consider adding some air fresheners to keep your home smelling fresh.

Get a Home Inspection

Before you list your home, consider getting a home inspection. This will give you a better idea of any repairs that need to be done, and can also help you price your home correctly.

In conclusion, preparing to sell your home in the spring market takes some work, but it's worth it to get your home in top condition.

One of the benefits of partnering with The Victoria Shtainer Team is the comprehensive, exclusive program we are able to offer our Sellers – Compass Concierge. If the above list sounds daunting, Compass Concierge helps take the burden off your shoulders without the need to front money for repairs needed to get the most value out of bringing your home to market.

By following these 10 spring cleaning checklist items, you'll be well on your way to listing your home and getting it sold quickly.

5 Signs It’s Time To Sell Your Home

Making a decision to sell your home isn't always easy. However, sometimes it's just necessary. Many different circumstances can affect your decision to move. Sometimes unexpected life events happen, or you get new opportunities. Other times, you just find yourself craving a change of scenery. Simply put, not every house you live in is meant to be your forever home, and that's perfectly okay. Knowing how to recognize signs that it's time to sell your home is vital for making the best decision. Keep on reading and find out what the most common ones are.

1. You're planning to expand your family

Outgrowing your living space is one of the most common signs it is time to sell your home. While welcoming new members to the family is always joyful, it comes with certain changes. Kids bring so much happiness to our everyday life, but they need space (in fact, a lot of it). For most people, starter homes can usually comfortably house two to three people. Often, your first place will not be able to give you everything your family needs for a comfortable life.

While moving to a bigger house before you even have a baby is not absolutely necessary, it is good practice. Moving with small children can be stressful. In order to make a seamless transition, it is better to plan ahead. Also, if you're moving for family reasons, be mindful of school districts when choosing your new home. This will allow you to select the best possible option, both space and lifestyle-wise.

Babies need space to play and learn as they grow

2. The market is favorable

The real estate market is very dynamic, and it is constantly fluctuating. Before making any decisions, the first thing on your list should be doing market research. While timing the market is never recommended, if you find that selling your house could be profitable at the moment because of neighborhood popularity, overall market strength, etc., it may be worth considering. There are a few signs that the market is in your favor as a seller. The first and most obvious one is the increase in price per square foot. Apart from that, low time on market is also a good sign.

Being familiar with the average house prices in your area is important for pricing your home appropriately. However, keep in mind that your selling price depends on many other things. For instance, the amenities your home has are a crucial factor. Entertainment rooms or smart systems will help drive the cost of your home up, making the sale more profitable. The general state of your house is also crucial. If any minor repairs are waiting, consider tackling them before putting your home up for sale.

An increase in real estate selling prices is one of the main signs it's time to sell your home

3. You want (or need) to relocate

Sometimes, the town or city you live in just does not do it for you anymore. Becoming bored with your surroundings is among the main signs it is time to sell your home and relocate. This whole process is much easier nowadays than it was in the past. Even long-distance moves can be a piece of cake if you decide to rely on an expert team to help you. Just make sure you plan everything, so there are no unpleasant surprises.

 Professional opportunities are also one of the main reasons people choose to move to a different place. Having a job lined up for you is a great incentive to relocate. If you do not have plans to return to your current city, selling your home before leaving is a good idea. This will give you some extra money in the new city, which is always handy.

4. Your house does not fit your lifestyle anymore

Your living space should be a reflection of who you are and what you do in everyday life. After all, it is where you should feel the most comfortable. However, the fact is everyone's life habits fluctuate over time. Circumstances constantly change, whether expanding your family or something smaller like picking up new hobbies. If your current house is not fit for your current lifestyle, it might be time to move on.

Sometimes it's hard to recognize which lifestyle change is 'big enough' to require moving houses. A good example is your little ones growing older, developing different habits, and requiring more space. On the other hand, if your children have left home, it might feel a bit too big and empty. This is a good sign that it might be time to downsize. Also, if you need room for amenities like an art studio, you might need to look for a bigger place and sell your old one.

5. You're financially ready for the move

Whether you're entering the real estate market as a buyer or a seller, financing is one of the key aspects. Being financially stable is crucial, especially if you want to upsize and upgrade from your current home. Think about how things like unpaid debt or loans affect your financial position. Apart from that, you should consider the effect of selling your home on your finances.

As the value of real estate keeps increasing, chances are that you could profit from selling your home. If you still have some money left over after selling your home and paying off your previous mortgage, it means you have equity in your home. This is usually a good sign, making selling your home a financially sound decision. Plus, it gives you some extra capital for buying your new place.

Selling your home can sometimes be challenging, especially if you're not entirely sure that you want to sell. That's why getting into the right mindset for the whole process is important. Apart from being emotionally ready, you should also pick the right moment to do it. Knowing how to recognize signs that it's time to sell your home is crucial and will significantly help you. It will also ensure that you make an excellent financial decision besides a lifestyle change. This is vital for the overall successful selling-and-buying process

Benefits of Investing in a New York Luxury Home

New York City is a cultural and financial powerhouse, attracting people from all over the world. The city's strong job market, diverse population, and vibrant energy make it an ideal luxury real estate investment destination. Owning a luxury home in New York City is not only a status symbol but also a smart investment. But what makes investing in a New York luxury home a good idea? As experts in New York luxury real estate, we’ve rounded up some of the top benefits of choosing New York for your next high-end investment. 

Why Is Investing in a New York Luxury Home a Good Idea?

New York City has long been regarded as one of the world's most exciting and dynamic cities, with its iconic skyscrapers, bustling streets, and world-famous attractions. But what makes New York City truly special is its status as a global finance, culture, and innovation hub. The city has some of the most influential businesses and institutions, such as the New York Stock Exchange, the United Nations, and more recently, is an emerging tech hub. It's also a cultural melting pot, with people from all over the world coming to live, work, and play.

Investing in a New York luxury home is a wise investment that can bring you significant returns.

Moreover, New York City is a city of opportunities, especially for those looking to invest in luxury real estate. With a range of high-end properties available across the city, owning a luxury home in New York City is not only a chance to live in one of the most desirable locations in the world but also a smart investment that can provide significant returns. But before hiring moving services to help with any moving task and moving to NYC, let's find out why investing in a New York luxury home is a good idea in 2023.

New York Luxury Real Estate Market Trends

The luxury real estate market in New York City is a niche market that caters to a small but highly active buyer pool. This exclusive market offers a wide variety of options, ranging from luxury condos with state-of-the-art amenities to towering penthouses and from contemporary townhouses to vintage brownstones. Unlike the regular market, luxury residential real estate in New York City operates differently, with top-tier real estate remaining a must-have for the city's elite.

Despite the impact of climbing mortgage rates and persistent inflation on the overall real estate market, the luxury segment continues to thrive. According to Compass data published by Variety, there has been a 35.6% increase in luxury home sales in Manhattan alone through August of 2022 when compared to the same period in 2021 and pre-pandemic luxury sales in 2019. This indicates that the luxury market in New York City remains robust and shows no signs of slowing down. But having the recession in mind and current global events, what can we expect in 2023?

What to Expect in 2023?

A recent study by Luxury Portfolio International conducted among 200 member brokers aimed to shed light on what luxury residential real estate professionals believe is in store for the New York luxury real estate market in 2023. The report titled the Business of Luxury Real Estate surveyed brokerages, their principles, and top-producing agents. The study discovered that 95% of respondents reported being optimistic about the overall market in the next 12 months.

However, signs of a shift towards a buyers' market are starting to appear due to larger inventories, increased days-on-market, and price reductions in some markets. According to the study, updated amenities, prime location, and size are currently the most common factors that sell luxury homes. But despite rising interest rates, experts expect that luxury real estate buyers will remain in the market. In fact, 76% of likely homebuyers admit that they buy high-quality products even in times of personal financial uncertainty. That's one of the main reasons most professionals surveyed believe that the market will stabilize in 2023.

Location, Location, Location

One of the biggest advantages of investing in a luxury home in New York City is its prime location. New York City is home to some of the most desirable neighborhoods globally, such as the Upper East Side, Tribeca, and Chelsea. Plus, there are plenty of coveted neighborhoods for luxury real estate in New York. These neighborhoods offer a wide range of cultural experiences, such as the Metropolitan Museum of Art, Broadway shows, and world-renowned restaurants.

From state-of-the-art condos to stunning high-end penthouses, there are plenty of luxury properties to choose from in New York.

The expert team from Pack & Go Movers advises that the city's central location also means that residents have access to some of the country's best schools, hospitals, and businesses. On top of that, real estate experts suggest that, apart from the prime location, investing in a luxury home in New York City offers the potential for significant returns. According to recent data, the median price for Manhattan homes remains at $1.1 million. This is a 10.2% increase from 2019, which is expected to continue.

Luxurious Amenities

Luxury homes in New York City come with a wide range of amenities that are hard to find elsewhere. Private elevators, panoramic views, state-of-the-art fitness centers, and spas are just a few examples. Luxury buildings often offer round-the-clock doorman service, concierge service, and valet parking, adding an exclusive touch to everyday life.

Luxury homes in New York City are located in close proximity to high-end amenities, such as designer boutiques and Michelin-starred restaurants, adding to the city's glamorous lifestyle. Living in a luxury home in New York City ensures a high-end lifestyle without ever having to leave the neighborhood.

Long-Term Investment

Investing in a luxury home in New York City can be a wise long-term investment. The city's real estate market has proven to be resilient, even during times of economic uncertainty. According to a report by StreetEasy, New York City's luxury home market has seen steady growth over the past decade, with the average price per square foot increasing by 44% from 2010 to 2020. The report also notes that luxury homes in New York City are more resistant to price fluctuations than lower-priced homes, making them a stable investment in the long run.

Investing in a New York luxury home is a smart investment that can pay off significantly in time.

So Will You Be Investing in a New York Luxury Home?

In conclusion, investing in a New York luxury home is a wise decision that offers numerous benefits. Apart from being a status symbol, owning a luxury home in NYC provides a safe and profitable investment that can provide substantial returns in the long run. Despite a brief slowdown caused by the pandemic, the NY luxury real estate market has remained robust, with a notable increase in sales in 2022. And as the market is expected to stabilize in 2023, investing in a New York luxury property remains a smart decision for anyone looking to build their real estate portfolio. So wait no more and reach out to a top expert in New York luxury real estate. Whether you're looking to make a long-term investment or to live in the city's most prestigious neighborhoods, a luxury home in New York City is an excellent investment opportunity that is worth at least discussing with a pro.

Mortgage Rates 2022: How High are Mortgage Rates? [INFOGRAPHIC]

The housing market in 2022 has certainly been characterized by higher mortgage rates as the Fed continues to increase its benchmark Federal Funds rate in an effort to combat inflation. With the Fed making its third 75 basis-point increase at its recent September policy meeting, what does that mean for mortgage rates?

It is important to note that the Fed does not control or set mortgage rates, however, it greatly influences them via monetary policy. Mortgage Rates typically tend to track the 10-year Treasury yield, so when yields rise, mortgage rates tend to go up as well.

 Are Mortgage Rates High Today?

While mortgage rates are currently the highest they have been since approximately 2008, the average rate for 30-year fixed mortgage according to Freddie Mac’s historical data shows that rates have been much higher than they currently are as well. Rates were in excess of 10% for most of the 1980s.

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 Today’s Average 30-year Fixed Rate: 6.43%

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via bankrate

While nobody wants to pay higher rates as it can erode home purchasing power, it is not all bad news. Interest Rates are still relatively low compared to historical standards. There are always benefits to homeownership and the predictability in monthly costs that a fixed-rate mortgage provides compared to renting.

Additionally, higher rates have impacted demanded which means there is less competition at certain price points and property types compared to the height of the busy 2021 market. This means that serious Buyers can still find opportunity and value in the market as the regain some of their negotiating power.

Features to Look for in Luxury Homes for Families

What is a luxury home? Or, in other words, what makes a home feel luxurious? Is it a home with facilities that make the owner feel pampered or indulged? When the word luxury is mentioned, large pools, indoor gyms, game rooms, backyard tennis courts, and home theaters come to mind. But what are the most desired features to look for in luxury homes for families?

An Open Floor Plan

The open floor plan concept has become so popular in luxury homes because it emphasizes the size of the home and is a compliment to the modern lifestyle many luxury buyers lead today. Instead of many smaller, copped-up rooms with an open floor concept, you get a huge living area that feels rich. Furthermore, having larger, open spaces in your home will make entertaining groups of people much more effortless. Having the right amount of space, whether in your kitchen, dining room, living room, or outdoor space, provides a more comfortable party or get-together. Plus, it gives you increased flexibility when it comes to designing your spaces. You can create a quiet corner in your living room, just for your indoor plants, that feels more like an indoor garden.

Plenty of Outdoor Space

When considering features to look for in luxury homes for families, the second thing that comes to mind is outdoor space. If you are a family with kids, you probably want your kids to have more than enough space to run around and enjoy their time outside. Since the pandemic, outdoor space has become an incredibly desired amenity. A large yard with enough space for a pool, a garden, an outdoor kitchen with a grill, and a shady relaxation spot is a must. Moreover, if your kids are still little, consider leaving space in the backyard for a jungle gym or swing set.

When looking at luxury houses, the amount of outdoor space is very important.

Smart Technology

Technology has advanced to levels that most of us cannot even comprehend in the last several years. As a result, it is no surprise that smart houses are becoming more popular. Smart homes were one of the top luxury home trends last year, and it does not appear that things have changed much since then. As technology advances, smart appliances are becoming an increasingly crucial feature for luxury home buyers. Smart home technology may be integrated into any home, starting with a smart thermostat, fridge, home security system, doorbell, and even an electronic home personal assistant.

Extensive Storage Space is a Must in Luxury Homes for Families

For some people, a walk-in closet is a true sign of wealth, for families, having thoughtful and functional storage throughout the entire home is also a must. According to experts at benhur.com, huge storing options such as walk-in closets have always been a popular sign of wealth among the general public. In part, this could be due to the number of reality shows that feature huge walk-in closets filled with expensive things.

We have never heard a Buyer say they regret having a large walk-in closet in their primary suite….sometimes even two!

A walk-in closet is an excellent way to both store and showcase your luxury belongings.

If the Kardashian-style “boutique” closet in the master bedroom is not for you, you will never regret having large closets in all bedrooms and common high-traffic areas such as the foyer and off the garage.
Game & Theater Rooms

When it comes to opulent living for the entire family, gaming and movie rooms have been popular for decades. For years now, an in-home theater and game room have become standard features in most million-dollar homes. Moreover, wealthy property owners are attempting to push this trend even further by installing amenities like indoor basketball courts and expensive sports bar setups with televisions and indoor bars. The main objective is to create an environment where a homeowner of this luxury property never needs to leave the comforts of their own home because everything they need is within their reach.

A Home Gym

Having to drive to go to the gym filled with other people? The focus on home gyms has skyrocket since the pandemic for a number of reasons including convenience and privacy. Home gyms at their pinnacle would have plenty of space for equipment, machines, and weights, as well as additional amenities like built-in wireless speakers and TVs. Like a cherry on top, luxury homes should also have a private sauna and an indoor pool as places to relax after a hard workout.

Home Office

In the years since the pandemic started, millennial homeowners popularized home offices among the general population, not just the wealthy. However, a beautifully decorated and well–organized home office is another feature you should look for in a luxury home for your family.

In recent years, home offices have become an essential part of luxury homes.

Final Thoughts

When it comes to luxury homes, everyone has their own preferences, however, we covered some of the most popular and requested features that luxury buyers look for in family homes.

In a competitive market, it is important to partner with professionals across the entire home buying process from purchase to moving. That starts with working with real estate agents that are knowledgeable about the neighborhoods in which you are interested. When it is time to move into your new home, we highly recommend higher professionals to help take some of the burden off of this typically stressful process. If you are moving within the NYC area, get all the help you need and hire reputable local movers to take care of and transport your belongings.

Key Trends to Watch in NYC Real Estate During the Second Half of 2022

The NYC Luxury Real Estate Market enters the second half of the year after a strong first half of 2022

We are officially halfway through 2022! The NYC market experienced additional records during the first half of 2022. As we enter the back half, market dynamics have begun to shift. While markets grapple with record high inflation and rising interest rates, signed contract activity has slowed and we have also seen an uptick in inventory. In the sales market, leverage is beginning to shift toward Buyers while the Rental market continues to remain highly competitive and hot.

The New York market has had a stellar past few years, but we have not seen the lofty price appreciation levels of 20%+ that some markets around the country experienced. Coming out of Covid, we saw elevated activity metrics, given the low amount of transactions that occurred throughout most of 2020. Additionally, inventory shortages are not new to the New York market.

 Heading into the back half, the shift in pace and market dynamics can likely be viewed as a return to normal from the frenzied pace observed throughout 2021 and the beginning of 2022. Mixed economic signals have deterred some luxury buyers, but there are many that are still motivated by a deal. It is important to remember that most transactions in the Manhattan luxury market are cash transactions, so a softening of the market surfaces opportunities for these buyers.

Buyers flocked to luxury properties during the first half of 2022. Pricing will be key as we enter the back half.

 Key Trends to Watch in the Second Half of 2022:

• Consumer Sentiment: likely to remain uncertain until we see positive economic data as well as a turnaround in equity markets

• Price Sensitivity: record high inflation that has raised prices across nearly every sector is weighing on consumer psychology…Buyers are motivated by a deal so accurate pricing will be key

• Construction Costs: we do not anticipate that construction costs will drastically drop in the near future, so the opportunity cost of waiting is still something Buyers need to assess.

• Rental Prices: rents rise in both economic booms and recessions so while a slight softening of activity in the white hot NYC rental market is reasonable, we do not expect prices to see a sharp decline.

 In times like these, it is very important to partner with the right real estate professional that truly understands the local market - in New York, that can be as local as down to a specific building! Media headlines can often be misleading and inaccurate in the narrative they are telling - a professional is your best asset heading into the second half of the year!

New York Renters Faced with Steep Lease Renewals

Data shows rents in New York have reached or surpassed pre-pandemic pricing

Rents across New York City have been on a tear, rising passed pandemic lows in some neighborhoods of the city. Rents plunged at the start of the pandemic as uncertainty swept the city and many renters fled to other homes outside the city or relocated. Now, however, rents are surging.

Many renters that entered into leases during lows of 2021 are approaching the end of their leases and are being caught by surprise with the steep renewal rates that are being proposed by landlords.

During the pandemic, Renters that new that would be staying put in the city began apartment shopping, finding spaces that they never thought were possible for themselves. Perhaps that was simply being able to afford to live alone or upgrading to a luxury building with full amenities in a prime location. When vacancy rates were high, landlords were desperate to secure tenants and offering extensive concessions.

The need for rock bottom prices and concessions came to an end as demand increased in New York. Rents in New York rose 33% between January 2021 and January 2022, nearly double the national average according to a study cited by The New York Times.

Rents in city’s most coveted neighborhoods experienced even larger swings, with some areas such as the Upper West Side and Williamsburg now seeing rents some 40% higher and even higher than before the pandemic.

Rents in some neighborhoods of Manhattan such as the Upper West Side have increased some 40%, more than double the national average

With pandemic deals expiring, rents are rising by hundreds of dollars a month. While many Renters who locked in COVID deals on their leases knew the deal was not going to last, many did not expect the extent to which rates would increase after the initial lease period.

The increase in rent, while a sign of the market stabilizing and the city recovering, is a frustrating situation for renters nonetheless.

In data cited by Bloomberg, it notes that tenants paid a median rent of $3,630 in February 2022, the highest for any month in more than a decade

What Should Renters Do?

Renters facing steep increases on lease renewals need to really asses the increased cost. While large rent increases are a hard pill for anyone to swallow, sometimes all the factors of moving can still be more than staying put.

Additionally, inventory is tight so finding a new option could also be challenging. Renters will need to re-adjust their expectations of what they can afford at their price range in today’s market.

Of course, if the proposed renewal price is simply out of your price range, begin your search for a new space as soon as possible. Partnering with a Broker that knows the city and can navigate the complex Rental Market will be a huge asset. Who you work with matters, so ensure you are working with an Agent that is a good fit. Negotiating with Landlords can be challenging so having a skilled negotiator on your side to get you the best deal is a must.

5 Reasons Why This is Not a Housing Bubble

Home prices have experienced significant year-over-year price appreciation, particularly since the lows of the pandemic. In fact, The National Association of Realtors reported that two-thirds of Metro areas reached double-digit appreciation in the fourth quarter of 2021.

Strong price appreciation and stories of homes selling in hours have many consumers worried a housing bubble is beginning to form. We have seen competition increase first-hand in our market, and know that you do not want to be a homebuyer without a Broker in today’s market.

Today’s market is, however, vastly different than the housing market of 15 years ago that lead to the crash of 2007. Here are 5 key reasons why today’s market is not like the previous one.

Stricter Lending Standards:

Lenders are much stricter with loan originations today than compared to 2006/2007. Lenders need to follow strict guidelines in order to qualify a borrow.

That means today’s buyers are highly qualified. Additionally, many lenders were packing up risky loans that masked the true cost of monthly payments or included large balloon payments.

We do not see that occurring today. Riskier products such as Adjustable Rate Mortgages (ARMs) account for only 5% of mortgages today compared to nearly 35% at the peak of 2006.

Foreclosures at Record Lows:

Extremely large numbers of homeowners facing foreclosure was the hallmark of the 2007 crash. Today, we are seeing the opposite with foreclosures at record lows. Homeowners have experienced large equity gains in recent years and many are sitting at a large equity surplus as a result. Additionally, many are not tapping into this equity and pulling it out of their homes like they were a decade ago.

In their Homeowner Equity Report, CoreLogic CEO Frank Martell stated:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

According to the report, only 3% of mortgaged properties were in a negative equity position at the end of Q3 2021, a decrease of 28.9% from the year prior.

Homeowners are equity rich today, with many have a large equity surplus on their property

There is a Supply Shortage, Not Surplus:

Basic market fundamentals say that an excess of supply depresses prices will a shortage of supply will drive prices up. In many areas around the country, we are experiencing a shortage a property which is leading to continued price appreciation.

The inventory picture today is much different than before. There is a healthy demand for homeownership, which is expected to continue for the foreseeable future, coupled with a shortage of supply that is drive appreciation.

Strong Job Market:

Coming out of the pandemic, the United States economy is much stronger than it was over a decade ago. We are currently in one of the strongest labor markets – any job seeker knows that the time to find a new gig is now.

Employers are looking to hire workers, and they are paying them. Wages have also been rising – the buying power of many households is significantly higher today compared to 2006.

A strong job market with rising wages is the backdrop for consumers to have the ability to pay for home purchases they finance.

Today’s job market is strong with Employers looking to hire workers. Wages are also on the rise

Interest Rates are Rising, but Still Low:

Yes, interest rates are on the rise and Mortgage Rates have gone up recently as a result. Even with the recent upward move in rates, 30-year mortgages are around 4%. In 2006 Mortgage Rates were over 6%.

By that mark, rates are still low making homes more affordable for Buyers today compared to over a decade ago. Coupled with rising wages referenced above, purchasing power is stronger today.

Additionally, one benefit of rising rates is that they function as a check on demand. For those concerned about a bubble, this is a positive as demand translates to pricing influence as mentioned previously. Rising Rates may help to keep prices from running away. On the flip side, it is worth noting that rates would have to rising by a very large amount to halt Buyer demand and cause prices to collapse.

How Millennials are Changing the Luxury Real Estate Market

Some people associate Millennials with incompetency and inertia, imagining that most people born between 1985-1996 are not business-savvy enough to impact the economy significantly. The reality is, the stigma that culture placed around Millennials could not be further from the truth, and Millennials have become one of the most influential and important demographic segments within the housing market.

Millennials are far from being superficial, naive real estate buyers hunting for the most Instagrammable Manhattan view out there. In actuality, the Millennials' purchasing habits and real estate preferences greatly impact the industry, and have been becoming more and more a key influence is more of this generation looks to become homeowners. Millennials are changing the luxury real estate market as we speak.

Naturally, if you want to sell or buy a luxury property, you want to know which home features people pay extra for. It is always better to introduce home updates that will appeal to serious buyers if you decide to move out. And Millennials have positioned themselves as buyers who are willing to invest in real estate. So much so they are de facto dictating the luxury real estate market trends. In fact, 38% of home buyers belong to this demographic group.

Millennials prefer their starter home to be a luxury property

The dominant rhetoric in recent years has labelled Millennials as hesitant to leave their parent’s homes. However, it is not the case that Millennials do not want or cannot afford their own homes. The latter has especially been bolstered by COVID as many Millennials were able to temporarily live with their parents, saving significant money for down payments. Because of the impact of witnessing the Great Financial Crisis, Millennials have taken, perhaps, a more cautious approach to buying, waiting longer to invest in their first property. This demographic group has strong buying power thanks to high incomes from salaries in industries such as Tech and Finance, particularly in the large, coastal metro areas around the country.

As a result, Millennials do not shy away from having their first purchase be a luxury home. This tendency makes them a true force of nature in the world of luxury real estate. The slight delay of their dominance in real estate has enabled them to invest in properties or rent luxury homes in some of the best areas of metropolises, such as New York. Of course, some NYC neighbourhoods are more welcoming to the Millennial's lifestyles and living preferences.

Millennials’ backgrounds and attitudes are changing the luxury real estate market

It is not just the choice of neighborhoods that affects the change in the luxury real estate market. As a generation, Millennials tend to be better educated, have better earnings, and inherit more than people in the past. All of this makes for a demographic group that has strong buyer power, and is investing its assets into luxury homes that are more functional and more energy-efficient.

Furthermore, Millennials grew up amid the technological revolution that has changed how the world works. As a result, the technical savviness of Millennials also dictates how luxury homes will be furnished, making the concept of smart homes synonymous with luxury homes.

Today, smart home features are a must in luxury homes.

Millennials increasingly work from their homes

The Covid-19 pandemic has influenced luxury real estate trends and predictions in upscale locations such as New York and the way most Millennials do business. So, a recent switch to remote working allows many Millennials to work from their home office. And what's better than basing your home office in a luxury home that is your “vision board” in real life - in a fantastic location at that.

Millennial homebuyers prefer to buy luxury homes with home offices.

Given this trend, luxury homes in sunnier, suburban, and remote locations surrounded by nature and other stimulating perks are in demand. In addition, Millennials are moving to luxury estates in more affordable cities as they no longer have to commute to work. However, it is not just luxury real estate that is catching up to these changes. According to  Tik Tok Moving and Storage, moving companies are also enhancing their range of offers and services, thus enabling their clients to prepare and execute a long-distance move in the shortest amount of time possible. 

Sustainability is becoming the norm in the world of luxury real estate

Another significant milestone in the world of luxury homes has to be the recent turn to sustainable and environmentally-friendly home features. Sustainable living has finally become a priority for eco-conscious homebuyers who want to reduce their carbon footprint by turning to green energy. And it is no coincidence this is happening right now. As they become older, people born in the Millennial generation tend to be more aware, outspoken, and fervent regarding these noble agendas.

Hence, experts in the luxury real estate market respond to these consumer preferences. As a result, energy-efficient HVAC systems, solar panels, green roofs, Tesla chargers, and other such sustainable home features are becoming a necessity rather than an exception in the world of luxury real estate. Since such technological advances in luxury real estate have the potential to set the bar for other real estate markets, soon enough, we are likely to see similar developments sweeping the industry.

Millennials are changing the luxury real estate market for the better

In sum, Millennials are changing the luxury real estate market mainly toward a more self-conscious, environmentally friendly, and data driven industry. Given the strong purchasing power and cultural impact of this demographic, it is likely that they will continue to shape market trends and dynamics in the near future.

Why You Do Not Want to be the Buyer Walking into an Open House Without a Broker

It comes as no newsflash that the housing market has been incredibly strong, particularly as the Pandemic turned a corner and pent up demand began to be released. Buyers have been lured to the housing market by low interest rates, strong equity market returns, and often times, a desire for a new or larger space thanks to new requirements for what home means from a work and personal perspective.

As activity picked up, so, too, has competition. Buyers are having to submit very competitive, informed offers if they want to win their dream property.  Because of the increase activity and competition, Pandemic pricing has come to an end in Manhattan as prices reached record highs last year. In fact, 2022 has been the busiest start to any year since 2006 for the Manhattan Luxury Market.

With stiff competition in the market, one of the questions that is most top of mind as a Buyer is – how do I remain competitive and get my offer accepted?

Working with a Buyer’s Broker is key to setting yourself up for success as a Buyer in any market, however, it is becoming evermore crucial to work with a Buyer’s Agent in the competitive market environment we are currently experiencing. In today’s market, you do not want to be the Buyer walking into an Open House without a Broker

Why You Need to Work with a Buyer’s Agent in a Competitive Market

In the era of easy access to information, there has been an uptick in individuals that attempt to take on the home buying process solo, without working with an experienced agent. We have always preached Agent not algorithm, however, the competitive market is bringing to light just how important that mindset is.

A real estate agent provides immense personal value that an algorithm cannot

One group of Buyers in particular is losing out on landing their dream properties, Millennials. This younger generation that is typically technologically savvy feels they have access to sufficient information to manage the buying process themselves. Additionally, this group typically tends to be financing their purchase as opposed to being all cash Buyers.

Buyers that attempt to take on the process themselves are quickly realizing there is much more to getting your offer accepted than simply searching Zillow or Streeteasy in your desired price range and attending an open house.

A Buyer’s Agent helps You Get Your Offer Accepted:

• Relationships: Your Broker will bring years of experience to the transaction, and through that experience is deep industry relationships. In real estate, relationships are key, and something an algorithm cannot provide. In a competitive market, your Broker can help get your offer accepted over the competition by leveraging relationships they may have with the listing agent. This can be critical when trying to beat all-cash offers which have become more common.

• Access: Many make the mistake of thinking that their self-service searches on Streeteasy and Zillow provide the full picture of inventory that is available. This is not the case as not all listings are on the market. Your Broker has access to off-market inventory and listings that are not consumer searchable.

• Negotiating Expertise: Your Broker understands the current market and knows what it takes to get your offer accepted and get the deal done. Their negotiating experience helps you prepare and put forward a strong offer from the start, so you can remain competitive if the property is experience Multiples.

A Buyer’s Agent with take a consultative approach to understanding your unique needs in finding a home

Remember: Working with a Buyer’s Broker does not cost you any money! There is only upside. The Commission is paid for by the Seller, so not out of pocket commission expense is paid for by the Buyer to have representation. Of course, once you decide you embark on the home buying journey, it is important to ensure you are working with the right agent.