IT HAS BEEN A ROLLER COASTER RIDE SINCE OCTOBER OF 2018!
The market had slowed down a little bit more than usual during the holiday season, but not just due to the hustle and bustle of the holidays, but also due to the uncertainty of the real estate climate. From October to November, rates rose over 5% for 30-year fixed, which in effect, freaked out many home buyers. This left us with an influx of inventory, longer DOM, and so forth.
Come the beginning of January this year, I was home shopping with clients and one of their fears was the rising interest rates and home prices dropping where they would end up loosing money in the long run versus gaining equity. Shortly after they had made the decision to continue renting, BOOM, the rates dropped as low as 3.98% for a 15-year fixed!
Closing out the fourth quarter of 2018, Manhattan’s number of transactions was the lowest annual sales figure since 2009. In Brooklyn, the numbers albeit lower than 2017, showed a little more resiliency than Manhattan. What could that possibly mean? Simple, there are still great buying opportunities in Brooklyn, if you’re looking to make a good investment. I always maintain buying in Manhattan (at the right price) is almost always a SAFE investment, however I do believe if you’re a savvier buyer, Brooklyn is where it’s at.
Areas are changing! I recently brought a celebrity, who also happens to be a developer, to Brooklyn to show him the potential and he was SHOCKED. Today, I find myself looking for multiple properties as he’s interested in exploring the prospect of developing in BK. While in NYC, I’m working with multiple buyers looking long and hard and for a steal and sellers who aren’t realistic with their numbers.
In short, I do believe there will be a slight slow-down in the market across the board, however, in Brooklyn I feel we still have another 1 1/2 – 2 good years left before we start discussing a stalemate.