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!

Guide: Celebrate Father's Day in NYC & The Hamptons

Father’s Day is Sunday June 19th this year, and whether you are in New York City or The Hamptons, here are a few ways to celebrate Dad.

Enjoy an NYC Beer Garden

via Grimm Ales Instagram

Many are surprised at the number of beer gardens located throughout the city. Enjoy the June weather and some brews with Dad. Grimm Artisanal Ales in East Williamsburg is a cool spot that mixes up experimental flavors with a unique setting that features graphic art. You’ll also find work of different graffiti artists on their cans. They also have 160 oak barrels for aging sour beer…truly a unique find in NYC!

990 Metropolitan Avenue

Shou Sugi Ban House

via Shou Sugi Ban House Instagram

Give dad the gift and experience of relaxation at The Hamptons go-to wellness destination. The wellness program is inspired by the principles of Wabi-sabi and traditions that value simple beauty and healing properties found within the natural world. Shou Sugi Ban House’s spa and wellness offerings include massages and hydrotherapy.

337 Montauk Highway, Water Mill

Dinner at Kassaki

Via Kassaki Instagram

Enjoy a sushi dinner at this Water Mill spot. Kassaki focuses on Omakase sushi and Kaiseki traditions. A 16 course tasting experience is offered which includes the chef’s choice of three appetizers, 13 pieces of nigiri and a dessert.

670 Montauk Highway, Water Mill

Explore Governor’s Island

via Governor’s Island Instagram

Hop on the ferry to Governor’s Island to enjoy the many activities and exhibits. There are multiple events occurring over Father’s Day weekend including the NYCRuns Father’s Day 5K & 10K, FAD Market Pop-up, and the NYC Lavender Festival.

Merchants Cigar Bar

via Merchant Cigar bar Instagram

What’s more classic than this Upper East Side cigar bar? Treat dad to the special Surf, Turf, and Smoke experience. This will include a choice of a MCB 1996 series cigar, a selection of spirit tastings with choices ranging from scotch to tequila, and a curated dinner.

1125 1st Avenue

The Hamptons Summer 2022 Restaurant Openings

It is time for another Summer season in The Hamptons. Each summer season brings with it highly anticipated new restaurant to Long Island’s East End. This year is no exception with new places popping up from Southampton to Montauk. We’re sharing a few of this season’s most anticipated openings.

Lobster Roll

The iconic Napeague fish shack known by its sign along Montauk Highway is expanding to a new location after 57 years.  Lobster Roll has taken over the old Princess Diner location in Southampton to offer up its cold and hot lobster roll and other favorites including fried clams and crab cakes. 32 Montauk Highway, Southampton

Sant Ambroeus

Spaghetti pomodoro via Sant Ambroeus

The famous Sant Ambroeus pink awnings will be going up on Newtown Lane in East Hampton at the former Babette space. Enjoy all your Milanese favorites will people watching. The East Hampton location is expected to serve breakfast, lunch, and dinner. 66 Newtown Lane, East Hampton

Enchanté

The empty Red Bar Brasserie will finally be home to a new restaurant after sitting empty for nearly 3 years. Heath Freeman, known from the popular East Hampton spot Si Si, has taken it over and is expected to transform it into a French bistro called Enchanté this summer. Gallic classics such as onion soup, escargots, dry-aged duck, and lobster frites will be served. 210 Hampton Road, Southampton

Sunset Harbor

Views at Sunset Harbor via East Hampton Point

The Harbor Grill on Three Mile Harbor may have a new name, but it will still offer some of the best sunsets in town. It’s been renamed Sunset Harbor, of course. The new restaurant’s menu includes selections of seafood such as shrimp scampi topped with fresh crab; mussel cazuela with coconut broth and chorizo. Sushi offerings will include local fish. 313 Three Mile Harbour Hog Creek Road, East Hampton

Little Ruby’s at Ruschmeyers

If you love the Ruby’s locations throughout the city, get ready for the all day Australian café’s pop-up that is coming to Ruschmeyers. Little Ruby’s Montauk will be serving breakfast, lunch, and dinner ,and come 10:30 the kitchen will close and they’ll switch over to table and bottle service. 161 Second House Road, Montauk.

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Enjoy Summer in Your Dream Home - New Construction in Water Mill

1552 Deerfield Road, Water Mill

This 9300 sq. ft. transitional home (6150 above-ground plus 3150 below) is being crafted by one of the Hamptons' most dynamic build-design teams for July 1, 2022 completion. The nearly 3-acre estate parcel is just past some of the Hamptons most gorgeous open fields and horse farms, with easy access to Water Mill, Bridgehampton, Southampton or Sag Harbor. Midway through construction, there is time to coordinate with the home's expert designer team regarding finishing touches and even custom furnishings if desired.

This newly built home features:

• Kitchen with marble waterfall island, 2’ marble counters and Subzero/Wolf appliances

• Two primary suites

• Completed basement with wellness center

• 42’ heated pool with hot tub

• Pool house

• All-weather tennis court

For more information visit 1552 Deerfield Road

6 Ways to Prepare for a Competitive Home-Buying Season in NYC

In general, the home buying market in New York City can be highly competitive. This is due to the high demand and low supply of properties. And when it comes to luxury real estate, things are no different. Moreover, high-end homes are unique, so they are highly sought after, just like any rare item. It's also important to note that, according to the experts, 2022 will see a rise in both real estate prices and investments. So, here are six ways to prepare for a competitive home-buying season in NYC.

Check your finances

As we all know, buying a home is never cheap. It is particularly so when you're looking for luxury real estate in New York City. Therefore, before you start visiting open houses, you must determine your budget limit.

• Analyze your finances carefully to see what you can afford and how much you’re willing to invest. Take into consideration your savings, income, and expenses.

• It would be best if you also took into account potential additional costs. For example, you might be keen on old architecture, but you have to consider the costs of renovation.

• If you're not ready to invest so much money at once, you can consider mortgages. And in this case, it’s essential to get a pre-approval. This way, you’ll know exactly how much money you can get.

• It's also advisable to look at some of the prices on the luxury real estate market. This way, you’ll know what to expect.

To prepare for a competitive home-buying season in NYC, you first must determine your budget limit.

Prepare for a competitive home-buying season in NYC by hiring the best Agent to Represent You

If you're not a professional realtor, you'll need help tackling the competitive home-buying market in NYC. Real estate professionals can offer you advice and help you find your dream home. Due to their experience and access, an agent can filter the market for your preferences and set up showings for you.

Moreover, it’s good to know that luxury properties are not always publicly put up for sale. And you only hear about some of them through word of mouth. Therefore, having a well-connected team of real estate professionals is essential. So, choose wisely if you don’t want to miss out on your dream home.

While researching professionals, it's also good to look at moving companies. Buying a home might take some time, but it's good to be ready. The professionals at Roadway Moving advise that if you leave it for the last moment, you won’t be able to find the best services and offers. So, do some market research for this as well.

Put together a team of real estate professionals to help in this process.

Determine what you want

Once you've determined your budget and found the right team of professionals, you have to figure out what you want. And don't just say a mansion or a penthouse. You have to be specific. Otherwise, not even the best team of realtors will be able to find the right home for you.

What’s important here is to understand what luxury real estate means for you. Is it the size of the house or the location? The high-quality materials that were used to build it? Or is it the specific amenities? Your definition of a high-end property can even combine all of these aspects. But in any case, you have to put it all down on paper and sleep on it. Don't make rash decisions. After all, this is a significant investment, so it has to be a good fit.

Choose the right location

Before you start your house hunt, it’s good to narrow down the location. Each of the five boroughs of NYC indeed has its unique features. Nevertheless, you have to find the perfect place for you. To do this, you should first explore on your own. Visit each borough to get an idea about the landscape, the community, the social life, the schools, etc. Afterward, consult with your team of real estate professionals. Their experience and inside knowledge can help you make an informed decision.

To prepare for a competitive home-buying season in NYC, you should narrow down the location.

Learn to be patient

Buying a home is a considerable investment, particularly if you're buying luxury real estate. Therefore, you should avoid making any rash decisions. Take your time to analyze your options. If you don’t find the right fit as soon as expected, don’t despair. These things take time. And don't get discouraged if someone else beats you to it. It's essential to be sure before placing an offer.

However, it’s also good not to be too picky and wait too long. Yes, the home you’re buying should satisfy all your needs, but there’s no such thing as a perfect house. So, you should be willing to make some small compromises. Otherwise, you might never find what you’re looking for.

 Learn to negotiate

Just because you're buying luxury real estate doesn't mean you shouldn't get a fair price. Therefore, don't skip the negotiation once you find a home you like. This is where your Real Estate Broker will be a huge asset to you as they are a negotiating expert and know the market prices well. They can advise you on what to submit for the strongest offer to win the property. It's also good to know how much competition you have. If the property is highly sought after, you might not have any other option than to place a higher offer.

Final thoughts

Because of the high demand and low supply, the housing market in New York City can be very competitive. Besides, finding the right home is never easy. So, what can you do to prepare for a competitive home-buying season in NYC? Determine your budget, seek professional help, identify what you want, and narrow down the location. Being specific is key. It's also essential to take your time and not make rash decisions. And in the end, make sure you get a fair price.

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.

Balcony Decor Ideas for Your NYC Apartment

When you live in an urban setting like New York, having your little slice of nature can feel like a far stretch. It does not have to be – more apartments have terraces and private outdoor space than you may expect. Moreover, this is also one of the home features New Yorkers are likely to pay extra for if you ever decide to sell your place.

We are sharing some balcony decor ideas for your NYC apartment so that you can make the most out of your little outdoor oasis. 

Matching your home with your personal lifestyle is what having your own NYC apartment is all about. If you are looking for inspiration on how to do so, here are a few interesting suggestions. 

Incorporate Accent Lighting

One of the perks of having a balcony in New York City is that you can arrange it as your own relaxing oasis. Some New Yorkers even have a secluded reading nook on their balconies where they can enjoy their favorite books in the evenings. And what better way to do this than with lots of lighting to set the mood? All you need to do is get a few strings of fairy lights at a nearby store to transform your balcony into a magical purple, blue, or red oasis. And if you already have a balcony garden, the shadowplay will be extraordinary. 

Plant a Garden

Of course, the most natural way to decorate your NYC balcony is to bring in a lot of plants. There is this minimalistic tendency that has swept NYC balconies where people like to keep furniture at the bare minimum so that they can make way for their plants, pots, and vines. If the air quality in your neighborhood allows it, you can even grow your own food and herbs right there on your terrace. Tomatoes, peppers, and coriander thrive in urban conditions, which means you have no excuse not to green up your balcony.

 Cozy seating 

Ditch the uncomfortable metal chairs to make your balcony as inviting as possible. Treat your outdoor space as an extension of your indoor living space by bringing in some cozy patio furniture. A small sofa and padded armchairs will make your terrace much more enjoyable and cozy.

 If you are just moving into your NYC home, consider reupholstering old furniture pieces you would otherwise throw away. It is much more affordable to relocate these pieces than buy new ones as it is a relatively hassle-free process when you hire professional residential movers to help you out. Also, our advice is to go for a synthetic material instead of natural ones to make the upholstering resistant to the sun and elements it will be exposed to on the balcony. 

For those that want a more traditional outdoor feel, opt for a hammock or swing if your space permits. You will be able to untie the hammock whenever you please in case you ever need the space for something else. 

Add a Small Outdoor Dining Area

A balcony can serve a practical purpose aside from being your favorite spot for unwinding. If your kitchen is connected to the outdoor area in your apartment, you can add a counter or countertop area that can serve as a makeshift bar or table where you can prepare and eat food or drink your morning coffee. So, you can host both unforgettable parties and moonlit dinners on your balcony overlooking New York City. You just need a few barstools, and voila - you have your own little NYC bar right on your terrace. 

Protect your privacy 

After you have finished decorating or repurposing your balcony area, it is time to think about your privacy. Curious gazes from the street might easily interrupt your fresh-air yoga session or morning stretch. So, no matter how much you get along with your neighbors, consider privacy screening.

If you have a green thumb, this is the perfect opportunity to do a little bit of gardening. You can place outdoor plants to keep your balcony out of sight. In addition, your little terrace jungle will also create shade in the summertime. Otherwise, you can opt for something such as bamboo fencing or a small hedge.

We hope you have drawn inspiration from our favorite balcony decor ideas for your NYC apartment. Enjoy beautifying your balcony!

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.

Top Luxury Real Estate Trends to expect in 2022

The US luxury real estate markets are in a state of perpetual change. That is why keeping an eye out for dominant trends can be a genuine make-it-or-break-it factor that will make selling or buying a home so much easier. These changes frequently result from global shifts and events that influence spending behavior. In that sense, the year 2021 was a surprisingly lucrative year for all stakeholders for several reasons. Consequently, there are many top luxury real estate trends to expect in 2022. 

Trends from 2021 that will influence luxury real estate in 2022

In 2021, the Covid-19 pandemic affected the global economy in that many people sought ways to invest capital in foolproof equity. Namely, luxury real estate saw significant buying activity since the appearance of the virus in 2020. This resulted in a widespread reduction of luxury real estate inventory in the US, given the increased demand for properties that provide space for work, play, and relaxation all at once. In addition to this, big-time wealth growth stemming from cryptocurrency gave way to increases in stock markets, housing prices, and widespread investments all across the board. 

Demand for large and comfortable luxury real estate has been on the rise since 2020. The trend is likely to continue into 2022.

 Interestingly, the heightened purchasing activity that started in 2020 did not subside in 2021, but the areas of interest changed. In 2020, buyers moved to rural and suburban areas due to restrictive lockdowns and other preventive measures. In contrast, 2021 marked a comeback to urban real estate markets and major commuter towns. 

Based on this, it is highly likely that 2022 will also be a big year for luxury real estate in New York City and other centers of major economic activity and trade. On the other hand, luxury real estate in the countryside should also retain its appeal in 2022. Let’s take a closer look at the luxury real estate trends we can expect in 2022.

Low inventory

In September 2021, 36% more luxury homes were sold than listed for sale. Only one month later, this figure jumped to a staggering 55%. This indicates that luxury properties are in high demand. Industry experts predict this trend is unlikely to change in 2022. As a result, the coming year will be a year of very competitive, high stakes, and high priced luxury properties. 

A more competitive luxury real estate market

As we mentioned, the inventory of luxury real estate properties has diminished due to growing demand. As a result, interest in luxury real estate has never been more pronounced. Interestingly, this is seen even in real estate markets dealing with ‘specialty’ properties such as properties in private communities, spacious and well-preserved historical properties, properties outside city centers, and even second properties. 

Low inventory due to high demand equals lots of competition in the world of luxury properties.

Furthermore, the pandemic has also influenced building activity, thus impacting the luxury property supply chain. Mandatory lockdowns and infections have slowed down construction due to the unavailability of skilled workers and comprehensive hygienic regulations. What’s more, this has affected the time and costs of constructing new luxury homes. With postponed construction timelines, soaring cost estimates, and pronounced competition, it will be much more challenging to acquire a luxury home in 2022.

As a solution to these problems, some homebuyers interested in buying luxury real estate decide to remodel their current homes while they’re searching for their new luxury home. Aside from increasing the market value of their old home, this decision allows them to prepare for moving into their new home. So, until you close the sale, you can take care of your designer furniture by renting a storage unit that will help you manage the remodel and relocation.

Relocations across the country will continue well into 2022

As the government urged people to stay at home whenever possible, many families began to see the benefits of owning larger properties offering a range of features. However, finding spacious properties in larger cities has always been formidable. 

In light of this, most homebuyers express interest in luxury properties in up-and-coming areas far from urban centers. In fact, the majority of purchases of luxury real estate are likely to come from residents of major US cities such as LA, Miami, and New York City as they are willing to pay extra for luxury home features. Not to mention that buying in less saturated real estate markets allows the buyer to get more square footage in addition to luxurious features. 
The migration from large cities to the country subsided in 2021, but in terms of large luxury properties, it is likely to continue well into 2022. Of course, until you manage to score the luxury property of adequate size and price, there are ways to compensate for the lack of space. Renting a storage unit and other storage solutions offered by the likes of nycministorage.com can help you solve your problems before and after you relocate.

The pricing of luxury real estate is likely to increase in 2022

The price thresholds should skyrocket in 2022 as current luxury inventory cannot satisfy demand. Median prices at which luxury properties were being sold in October 2021 increased by 23% for single-family homes and 14% for attached homes compared to 2020.

Although this may not seem like a significant change, consider that the statistics for homes sold in the price range from $1-5 million showed a 68.9% increase in the first ten months of 2021 in comparison to 2019. As a result, the pricing thresholds for luxury real estate increased all across the country.

Accordingly, it is not unreasonable to expect the continuation of this trend in 2022 precisely because of factors such as low inventory of luxury homes and other luxury real estate trends to expect in 2022.