We're Not Plummeting Into Pre-Recessionville
All year we’ve been hearing about the housing market bubble getting ready to burst. Pundits have been warning that a recession is coming down the line, and OMG, hold onto your hats! because it’s going to be bad. However, when we look at the numbers more closely — year-over-year, quarter-over-quarter and transaction after transaction — a new perspective emerges. The reality is that, so far this year, the real estate market has not been that scary, doom-and-gloom landscape everyone is screaming about. And it’s certainly not plummeting into pre-recessionville.
In fact, today’s conditions are what agents and housing experts started begging for more than four years ago. What’s happening to the Manhattan housing market now is a correction. When home values increase 1 percent per month or 10 to 12 percent a year, it’s just not sustainable growth. And when sellers get used to that type of growth, then yeah, it's going to feel like co-op and condo Armageddon if they bought back in the heyday of 2014-2015.
If you take a moment to flashback to 2014-2015, you’ll remember real estate brokers constantly warning that the pace of appreciation then was going to kill the New York City housing market. They complained about low inventory levels and that there wasn't enough selection. They bemoaned the constant bidding wars and worried that prices were going up too fast! You heard time and again that the overall market was unsustainable and that it really needed a correction.
Back in the present day, you can take a look at 2019 so far and see that there’s been moderate growth in most segments of the market. It just doesn't always feel that way because things were moving on such a rapid, steep trajectory for so long.
We all need to take a breath here. The Hoffman Team has 78 deals sold and closed or in contract so far this year, and we’re on pace to close over 110 transactions by the end of 2019. The facts are that buyers are taking advantage of the lowest interest rates since the recession, and sellers (when they don’t try to price for a 2014-2015 market) are listing and selling their inventory successfully.
Despite all the bad news in the press, the stresses coming out of Washington, concerns about election-year uncertainty and what seems to be a world spiraling into the abyss — the local economy is strong, and buyers and sellers have been agreeing more often than not on terms and price. This is the correction we asked for, and transactions are still happening.
Local Events & Things To Do
New York Fashion Week
September 6-11
The fashion industry's bi-annual main event returns this month, bringing top models, photographers, and designers to events around the city. Check out the schedule and buy tickets to events open to the public here.
Taste Williamsburg Greenpoint
September 15 (1 to 4 p.m.)
Celebrate North Brooklyn's local flavors at this annual outdoor tasting event. The festival features tastes from over 40 of the neighborhood's best restaurants, bars, breweries, and wineries. Click hereto buy tickets.
The Feast of San Gennaro
September 12-22
The Feast of San Gennaro is a celebration with a festive atmosphere, delicious food and colorful processions. For 11 days, Little Italy is transformed into a red, white and green bash with special guests, live music and a cannoli eating contest. More information here
Brooklyn Book Festival
September 16-22
This annual literary celebration brings together spectacular writers from across the globe for a full week of talks, shopping and even yoga to satisfy the borough’s brainiacs. Events will be taking place all week long, but the main draws are Saturday's Children's Day and Sunday's Festival day. More info here
New York Film Festival
September 27, to October 13
Easily one of the best things to do in the fall, the New York Film Festival stretches back to 1963, when it established a mission of bringing the best work from around the world to Lincoln Center. More information here.
Easily Increase Your Property's Market Value
With Compass Concierge
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Compass will cover all upfront costs, collecting payment for the services rendered at the time of the property's closing. By investing in your home's potential, we aim to provide a swifter, more profitable sale. Read more about Compass Concierge here.
The Hoffman Team Compass Concierge Experience:
We utilized Compass Concierge for our exclusive 201 East 21st Street, Unit 15E in Gramercy Park. After just one open house and 14 days on the market, we were able to sign a contract OVER ASKING and $34,000 over the exclusive listing price! Ask us how we did this....
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