This is Corey Cohen, founder of The Roebling Group – the #1 Google-ranked real estate agency. The Roebling Report is our bi-weekly newsletter that summarizes everything you need to know about New York City real estate.
Prices Set to Cool This Autumn
The average 30-year fixed-rate mortgage currently sits at 7.49%, a dramatic increase from roughly 3% at the start of 2022. This rapid increase in mortgage rates has made it much harder for prospective buyers to find the right home. But, there might finally be a light at the end of the tunnel for buyers.
According to data from Zillow, the share of listings with a price cut climbed to 9.2% in mid-September, the highest level since November 2022.¹ Additionally, August saw a spike in new listings which will help ease supply constraints. These two factors mean that home prices could finally start to ease this fall.
Home prices typically drop in the fall, after the busy spring and summer seasons. But, the next few months might be an especially good time to find a deal on your dream home.
If you’re shopping around for a new home, this anticipated drop in prices could give you more negotiating power to secure a good price. There’s also a good chance that you’ll face less competition from other bidders.
Florida Rises to Country’s 2nd Most Valuable RE Market
Florida has usurped New York as the country's second-most valuable residential real estate market, after California. This announcement comes after Tampa, Miami, and Jacksonville have all ranked as some of the fastest-growing cities in the U.S.¹
The total value of Florida’s residential real estate market is now estimated at $3.8 trillion, up from about $2 trillion in 2019. This tremendous growth was jump-started during the pandemic when the Sunshine State became America’s fastest-growing state for the first time since 1957.
However, New Yorkers shouldn’t fret about getting outranked by Florida. The New York real estate market is still more valuable than the GDP of every single country except India, Germany, Japan, China, and the United States. According to Zillow, the average New York home is valued at $733,845.
Additionally, New York City still reigns supreme as the world’s most valuable city, according to a 2020 report by Real Estate Weekly.
The Future of Trump’s NY Real Estate Empire
Former President Donald Trump is facing an ongoing lawsuit accusing him of fraud. In particular, he’s being accused of inflating the values of his real estate holdings.¹ Due to this suit, Donald Trump is at risk of losing control over some of his most iconic New York holdings.
Trump properties at risk include:
Trump Tower: Headquarters for the Trump Organization that’s located on Fifth Ave in Manhattan
40 Wall Street: A 72-story neo-Gothic tower in the heart of New York's financial district.
Seven Springs Estate: A 212-acre estate stretches across the towns of Bedford, Armonk, and Chappaqua in New York's Westchester Country
Although it’s not entirely clear, the Trump Organization could also be forced to give up any properties owned by New York-based LLCs, even if the properties are outside of New York. This would include Trump’s famous 17-acre Mar-a-Lago resort based in Palm Beach, Florida.
Former President Trump has denied any wrongdoing so far and is expected to appeal any decisions that are made.
¹https://www.bbc.com/news/world-us-canada-66949606 Rapid-Fire Headlines
WeWork announces that it will skip $95 million in interest payments as it seeks to negotiate with lenders. This reaffirms suspicions that the coworking company doesn’t have the financial capacity to continue operations.
A new real estate law has been introduced that’s named after singer Katy Perry. The Protecting Elder Realty for Retirement Years Act (PERRY) aims to protect the elderly during real estate transactions.
Some of the world’s largest fashion brands are expanding their brick-and-mortar footprint. Among others, French luxury brands Van Cleef & Arpels and Hermès have announced new flagship stores on Madison Ave.
America’s universities have been snatching up unused office space. 49 four-year private schools and 16 four-year public institutions have bought office buildings since 2018.
New NYC real estate regulations could benefit rental landlords and hotels but harm Airbnb hosts. NYC’s new Airbnb laws went into effect on September 5th after a state judge tossed out a lawsuit by Airbnb.
Have a question about buying or selling real estate in NYC? Please feel free to call me at 646.939.7375.
Best,
Corey Cohen
Founder
The Roebling Group
ccohen@roeblinggroup.com
646.939.7375
@mrcoreycohen
