Weekend Update

Overall the market seems to be settling in, behaving with a certain degree of normalcy. The current state of the rental market is slow, which is what one would expect at this time of the year. Deals are still happening but at a much slower pace and with less urgency than the summer (which was very busy). The sales market has continued to hum along, but not at the pace we saw during the late spring, summer selling activity. I signed two contracts over the last two weeks, had a client change their mind on a rental deal a few days ago and have an application in on a two bedroom rental in the West Village as of yesterday.

A customer that signed a contract a little over two years ago got a little surprise last week. Let me tell you this has been a roller coaster ride since Lehman went under. This particular sponsor has been re-negotiating with contract holders in order to keep them on board. Our customer (I have a limited interest in this deal with my ex biz partner) wanted to have an appraisal to see where he stood with current value of the home. I think to his surprise it appraised at the ask ($3,000,000), who knew? It seems appraisers are being much more thorough with their due diligence when pricing homes, so I am not suspect of his findings. I guess that’s good news….

I am currently working with about 5 buyers providing various levels of service, two of them are hard core buyers, they want to own…now. These two have reasonable price expectations coupled with a realistic idea of what they can expect based on their budgets. They are very frustrated! The well priced properties that they like and in some case have made offers on, they are being outbid on. Or in some cases they are being told by the listing broker that their finances are not adequate. I know it is an old cliché, but what would pass as quite well off in most of the US, barely can buy you a decent one bedroom in this city. It’s frustrating for my clients and the way some of these listing brokers come off, it’s quite demoralizing. As one client put it, “This witch talked to me like I was a moron, I have two graduate degrees for God’s sake!” I think more brokers need training in compassionate speaking, as I like to say I don’t need REBNY to tell me how to act, I answer to a higher power- “The five principle of mindfulness” lol. Don’t say things that can do harm to others, I am far from perfect but take this seriously.

I have been bearish for so long and waiting for the other shoe to drop it’s hard getting accustomed to a certain amount of normalcy. I have personally been very critical/suspicious of the economic policies that have been enacted (but hey what do I know?) based on critical analysis by some of the experts. Although the adjectives to describe what is going on and the number of times they have changed is quite amusing. Will the other shoe drop? Wish I knew, but get ready for the new normal because the way business gets done (especially in the real estate game) is changing.