Sponsored Content
You know that gust of wind you feel following a roaring freight train. That’s what we’re all feeling after the New York Knicks NBA Championship. Let’s Go Knicks !!!!
Metaphorically, a similar gust/momentum has sustained the Spring market’s activity deep into its cycle. It’s more typical, at this time of year, to see deal activity begin to contract. However, as you can see from the chart below, the Liquidity Pace, which has given us the best Spring season we’ve seen in years, is up 18% over last year. And think about it, that has been in the face of geopolitics, rising inflation, and, most importantly, a bump in rates of about half a point, from 6% to 6.5%. So demand is strong. 
Although supply is peaking for the year at approximately 6,800 listings, we are down some 8% from a year ago when we had ~7,400. What’s that mean for sellers? It means you have less competition in an active marketplace. This marketplace is efficient enough to identify that if you are not transacting, you are likely mispriced and need to make an adjustment. If you’re a buyer, it means that you have a lot more competition than you think. The fact that demand is as strong as it is, considering all of the obstacles that buyers face in today’s market, means that demand is only going to get stronger with time. And THAT means higher prices.
|
Topic of the Moment “The City Surcharge on Property That Does Not Serve as a Primary Residence“ aka The Pied-a-Terre Tax New York State has enacted a phased Second-Home Annual Tax on certain high-value New York City residential properties that are not primary residences. The tax applies to 1-3 family homes, condominiums, and cooperatives. The tax takes effect in phases. See REBNY’s breakdown describing the key details and timeline here. While this may have a collateral effect on the broader marketplace, it’s to-be-determined. For those properties subject to the tax, there will certainly be a monetary consideration. If you have a pied-a-terre in the $5M+ range this could affect you directly. In order to determine whether you are, or are not, subject to the tax, you will have to reference the Department of Finance website to use THEIR market value metric…which, by the way, has nothing to do with reality. Further to the confusion (for everyone) are the two phases and infinite unique scenarios and questions that they elicit. Although there are no concrete answers yet, if you have any questions and/or would like some assistance in walking through this, do not hesitate to contact me. |
