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Hey friends, I want to wish everyone a wonderful wonderful Thanksgiving week. It truly is my favorite holiday... What is better than having a holiday that asks you to be in the moment of just being thankful? Inquiring minds want to know... what am I thankful for? My family and my life and my business. To that end (business) I must say thanks to all of you, my friends, and clients who entrust me with your homes and your home search. It is really an honor to be your trusted advisor! And lastly, I am truly truly thankful for Turkey, I secretly love it soooo much! Can't wait to chow down on some delectable eats!As for the world of real estate... You may have heard (like everywhere!!!) Interest rates continue to keep potential buyers weary, but there have been a few bright spots in economic news. Recently released job numbers were strong, while the October Consumer Price Index saw an increase far below expectations. Could inflation be cooling? It's too soon to tell. But in the meantime, there are still plenty of options for buying and selling in New York City, one of the world's best-performing real estate markets. As a smart man (my friend Ron) said: You buy the property and rent the rate... (you can refi). Also in the newsletter, I have a fun "Meet The Broker" from Jeffrey Saad of LA. In keeping with the theme of the World Cup NYC is getting a new stadium for you soccer/football fans and I give a list of some of the best places to watch the matches... tell me yours! And finally, the Michelin stars came out to play recently and I have a rundown of them... Wishing you a wonderful, relaxing Thanksgiving filled with friends, family and laughter! Ed 917 592 5971 |
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MARKET ROUNDUP |
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Facing Historic Interest Rates, Developers Get Creative |
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With interest rates challenging the market, the developer behind some of New York City's splashiest new buildings is aiming squarely at hesitant buyers by paying down their mortgage rate. Extell Development's "Rate Rewind" program buys down buyers' mortgage interest rate by 2% for the first three years at its One Manhattan Square development on the Lower East Side and at Downtown Brooklyn's Brooklyn Point condo. After seven years on the market, One Manhattan Square has closed 57% of its 814 units, while Brooklyn Point is 66% sold. Extell execs say the strategy is working, with both buildings seeing an uptick in inquiries and appointments. As interest rates are expected to stay well above pandemic lows, other developers are sure to take up creative strategies to invigorate sidelined buyers. |
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...And So Do Buyers |
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Buyers are also wielding innovative strategies to avoid 20-year-high interest rates, including finding creative ways to pay with cash. For some buyers that means taking out loans against other assets, borrowing from family, and opting for seller financing. Alternative financing can have downsides, namely the loss of valuable mortgage interest tax deductions. The rise of all-cash buyers can also negatively impact first-time homebuyers. According to the New York Times, over 27% of all U.S. home purchases in July 2022 were all-cash purchases compared to 17% the year before. During the same period, first-time buyers made up 25% of all buyers, down from the historic average of 40%. Only 3% of first-time buyers bought their homes in cash. |
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Soccer in the City |
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A sizable chunk of the city's real estate will get a major overhaul with the addition of a 23-acre sports hub in Queens, including a 25,000-seat soccer stadium for New York City FC. The winners of the 2021 MLS Cup will enjoy their first permanent home alongside CitiField in a project estimated to cost $780 million. The mixed-use development will include a 250-key hotel, 40,000 square feet of public open space, ground-floor retail and a K-8 school. The site's 2,500 units of 100% affordable homes will be the most significant addition of affordable housing since Co-Op City's launch in the 1970s. The stadium will open in 2027, just a year after New York City and New Jersey host the 2026 FIFA World Cup. Speaking of the World Cup, I absolutely love the tournament. One of the many, many great things about NYC is that you can probably find a bar or restaurant for nearly every nation represented at the Cup, and you can be assured that they will be showing the games! Here are a few great places to watch |
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MEET THE BROKER - LA's JEFFREY SAAD |
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In each Meet the Broker feature, I ask a fellow real estate professional three questions to gauge their outlook on their geographic region. This week, we're getting a feel for Los Angeles with Compass agent Jeffrey Saad. I first "met" Jeffrey when he had an amazing cooking show on The Cooking Channel. He is so fantastic on the show that it is no wonder he is also a top broker! What can't the man do... Let's get to know him and his market! If you are in the hunt in LA let me know and I will make an intro... |
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What area do you focus on? All over Los Angeles, but about 30% of our business is in Bel Air. How is the market doing there? Flips have become flops. If it needs work, buyers are very hesitant and expect a big discount as they are still worried about the cost of construction and the availability of good workers. If it is a "blue chip" house on a "blue chip" street, it sells with multiple offers over asking. In Bel Air, the lack of inventory is still keeping prices solid. As of this writing, there are currently only eight homes available for up to $2 million and another 27 for up to $5 million. That's about 25% below the norm. Roughly 40% of homes have price reductions, and 14% of homes have been re-listed (meaning, that percentage of the inventory is almost irrelevant as they are not motivated sellers). Absorption is still incredible, thus fueling the shortage of inventory. In all of Los Angeles just last week, there were 170 new homes on the market, but 212 sold, depleting the inventory even further. Where do you see value? It is always a great market if the home is priced right. There are plenty of buyers with money. The value is in not hesitating and making an offer. There is now a window where one can negotiate. If you engage, you win; if you wait, you lose. |
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MY NEW YORK CITY - 2022 MICHELIN DINING EDITION |
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The renowned Michelin Guide announced its 2022 restaurants for New York City last month with some notable additions and omissions. While several critics panned Eleven Madison ParK's pivot to plant- based dining last year, the restaurant retained its three-star rating — making it the only restaurant vegan restaurant in the world to hold the honor. That means that New York City's three-star category was unchanged this year, with Per Se, Chef's Table at Brooklyn Fare, Le Bernardin and Masa rounding out the list. Seventeen new restaurants debuted one star, including the LES vegan outpost Dirt Candy and Greenwich Village's Semma, the city's only Michelin-starred Indian restaurant. Two restaurants were elevated from the one-star list to two stars: Saga and Al Coro, an Italian fine dining restaurant that's a mere four months old. Perhaps the biggest news lies in the hot spots and stalwarts that fell off the list this year, including Peter Luger steakhouse, Marea and Carbone. In addition to the famed Michelin Red Guide, the firm also publishes a list of affordable "Bib Gourmand" establishments where patrons can order two courses and a glass of wine before tax or gratuity for $49 - these are often my favorite spots. Still waiting for the Michellin guide of holes in the wall... Be sure to keep Eater's map of 73 Michelin-starred New York restaurants bookmarked for your next fine-dining occasion. |
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