{March 2019} The Flip-Flop Buyer and Seller
Spring is finally in the air! The first quarter of 2019 marks a noticeable improvement in traffic and sentiment for the NYC real estate market. My fellow-agents rate 2018 as the worst year since 2007. Activity levels were so low that some agents took the entire month of December off last year. This year, with rates heading lower and equity markets heading higher, we are seeing much more activities in the first 3 months of 2019. However, all these activities do not necessarily translate into done deals. Conversations in the office reveal that only 40-60% of the contracts sent out are getting signed. Back when the market is strong in 2014 and 15, almost all contracts sent out are signed. This is happening because buyers still have many options and do not commit to their decisions. The question of whether the market is going lower lingers in the background. On the flip side, many sellers are also unsure whether they need to/should sell at these lower prices and they too, change their minds.
The NYC real estate market was the tale of two cities in October. Total transaction volume ticked higher, even though rates moved higher and sentiment was tense. Most of our new clients were understandably quiet. But quite a few of our repeat clients, the real estate veterans, were busy putting deals together.