0.25 Percent and Rising
In the middle of last month, the Fed decided to raise the interbank rate a quarter percent, which effectively increased a borrower's interest rate to 4 percent or higher in most cases. The topic on everyone's mind is how will this affect or derail the strong real estate market that's been underway since COVID recovery started back in October 2020. Short term, there seems to be little negative reverberation among buyers, meaning they aren't yet looking to exit the market or reduce their purchase power. If anything, it's been a frenzy to put their chosen properties into contract and lock in a rate before they climb any higher. But how will sustained rate increases throughout 2022 affect the market as a whole? That remains to be seen. Frankly, it's the number one question moving through Manhattan/Brooklyn real estate circles today.
The Fed is set to meet next on May 3rd, again on June 14th, and then four more times before the end of the year. Rate increases are likely to ensue after those meetings — the talk is another quarter-point each meeting. This will definitely have a psychological effect on buyers while also taking a bite out of their purchasing power.
The market "bulge" in New York City is listings priced at a million dollars and under. That is the general nuts and bolts of the overall market in New York City. This segment is also directly affected by mortgage rates, whether it's a first-time homebuyer or buyer’s looking to expand and grow into a larger home. They will be looking at financing options that get them into the homes they want, need and can afford. The last word — afford — being the most important when talking about rate increases.
So this summer, all eyes are on those next Fed meeting dates when they will decide whether to raise rates to potentially stave off out-of-control inflation due to COVID, geopolitical unrest and war. Stay tuned!
Local Events
Whitney Biennial 2022 Exhibit: Quiet as It's Kept
Introduced in 1932, the Whitney Biennial is one of the longest-running exhibits in Manhattan. Starting April 6th, come see over 3,000 influential artists and ideas come to life in the Biennial's 80th edition. This is one of the museum's signature events and one you will not want to miss.
To purchase tickets or learn more about the exhibit, click HERE.
New York International Auto Show
From April 15th-24th, you can enjoy the best that the automobile industry has to offer in the heart of the Big Apple! New York's international auto show will not only include a variety of luxury cars, but also one of the largest electric test track ever created.
To learn more about the auto show and ticket offerings, click HERE.
News & Lifestyle Tips
COMPASS is #1
We are pleased to share that as of the end of 2021, Compass is now the LARGEST brokerage in the United States in terms of closed sales volume (RealTrends 3/16/22).
In less than 10 years, we went from nothing — not existing — to #1.
We can confidently say our referral network is officially the best in the United States. Almost anywhere a buyer is considering moving, Compass has a highly talented, high integrity, well-respected and hardworking agent to refer you to.
We are proud to be a part of the largest brokerage in the U.S. – where we can best support YOU! Powered by the Compass network and technology, we have access to the top agents nationwide to help you with all of your real estate needs.
12 Recipe Ideas for Spring Produce
Spring is just around the corner, and with the warmer weather comes a slew of tasty spring produce ready to add some freshness to your meals. Here are a myriad of recipes that really give mangoes, peas, and more spring fruits and vegetables a chance to shine.
Open Floor Plan: In or Out?
Over the past few months, we've been noticing the rise in rooms—not just designated areas of a larger space, but sectioned-off spaces complete with four walls. So, what gives? Is the open floor plan on its way out? Admittedly, it depends on who you ask.
