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.

Courtesy of Real Simple

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.

Courtesy of Martha Stewart Living

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New York State of Mind

In January, the New York Department of Finance reported that, for the first time in history, the total property value for New York City has risen over the trillion-dollar mark. Manhattan’s surging market combined with an incredible construction pace in Brooklyn and Queens brought total market value of taxable property to $1.072 trillion, a more than 10 percent increase for the 2017 fiscal year.

These types of numbers do and will encourage the average seller of an averaged priced property in Manhattan (which happens to be about $1.75 million, by the way) to price his or her apartment as if they were solely responsible for launching property values over the trillion-dollar mark. Sellers must, instead, do themselves a favor, and unburden themselves from this temptation. More and more, the pendulum seems to be swinging to the buyer side as the market adjusts itself after a rough start to the year.

I had Barry Weidenbaum, partner at real estate law firm Weidenbaum & Harari, in to speak to the team recently, and he shared what he is seeing in the market. His outlook is, of course, very different from a real estate professional's point of view, but a real estate attorney's perspectives is valuable and can shed light on an ever-changing market, enabling us to adjust quickly and nimbly, before the market does it without us. He stated that, while in 2015 the NON-mortgage contingency was commonplace in deals, the mortgage contingency is being found in deal contracts more and more as 2016 unfolds. Sellers accepting mortgage contingency could be the begging signs of a shift in the market from seller to buyer. Of course, no one knows for sure, but we are all noticing a slower super-luxury market, which is now starting to affect the luxury market (properties valued at over $3 million). The $1 to $3 million category is still strong, but you better price your two-bedroom correctly in the market.

I visited an owner last week who put his two-bedroom co-op on the market in Lenox Hill matching the lowest priced listing on the market at the time, rather than trying to price the home too high. The bulk of the 40-plus two-bedroom, two-bathroom homes at the time were priced between $1.5 million and $1.6 million, but by positioning his property at such a compelling number — knowing that his layout, finishes and overall quality were on par with his $1.5 to $1.6 million competitors — he knew the market would have a huge reaction to his listing. And it did: He received seven offers the first weekend, and by the time the second open house was finished, he had 11 more offers — three more than expected. From these 14 to 15 offers, the seller brought pendulum back to his side of the market. He accepted a NON-contingent offer over the $1.55-million mark, and he controlled his own destiny.

The lesson? Stay ahead of the market and make the market react to you. It’s the best way to move property in the current market. And, if you're a buyer, remember, there are 39 other properties in Lenox Hill that aren't receiving much interest and have nervous owners ready to strike a contingent deal with you.