- Michael Shapot, Esq.
My Glass Remains Half Full
Good riddance to the first six months of 2022. COVID continuation, raging inflation, recession chatter, equity markets in freefall, spiking crime rates and interest rates, political turmoil, war... I choose to look at the bright side and find opportunity in every situation. Here are some tidbits of good news for you to consider: Buyers of residential real estate in Manhattan have more choices. Inventory is rising in all segments of the market. Buyers have less competition. In winter and early spring, multiple bidders were the norm. This is no longer the case.
Sellers don't have to worry about selling their home and becoming homeless because there is no place for them to move. Home prices in NYC are holding firm. Sellers need not panic or sell at a steep discount but do need to be realistic and prepared. The market is less frenetic. Its slower pace enables buyers and sellers alike to more comfortably make smart, strategic and calculated choices. Well priced properties, especially those in move-in condition, continue to sell quickly and at close to top dollar. History teaches us that NYC housing prices never plummet overnight and that corrections are short lived. During inflationary times, real estate is considered a smart place to park cash and a safe long term investment. Consumer confidence remains strong in NYC residential real estate. There is only one NYC, and we're positioned to thrive. Heck, both the Mets and the Yankees are in first place. Go New York, go New York, GO! Workers returning to their offices have strengthened the rental markets, and retail, restaurants and hotels near central business districts are thriving. Rents are rising faster than interest rates. Investors who had been on the sidelines are returning to the market. International buyers cannot be far behind, especially with the easing of international travel restrictions. The Fed's goal of slowing runaway inflation is working. - Gasoline prices seem to have stabilized. - Supply chain problems are easing. There is plenty of toilet paper and antibacterial wipes. Baby formula has returned to supermarket shelves. - Remember when lumber was not available and its cost was spiking? Those days are over; prices are down dramatically. The truly dark days of COVID are behind us. We've grown accustomed to the post-COVID new normal. Perhaps the volatility of the equity markets will level off and prices will soon hit bottom and turn the corner. The S & P 500, while down 20% off its peak, is still more than 10% higher than it was in Jan 2020. Higher mortgage interest rates translate into greater tax deductions. The SALT cap is based on a maximum home loan of $750,000 and will rise with higher interest payments. Consult with your CPA on this one. The job market is strong. For individuals wanting or needing jobs, they are readily available. Banks and management companies should become faster and more efficient in processing loan applications and purchase applications. People thrive in both strong economies and recessions. Where is your opportunity? Carpe diem. Seize the day!