November was a month of travel; meeting with clients in Asia to discuss opportunities in the New York housing market. I was privileged to join an investor summit where family offices reiterated their desire to purchase real estate in the global market. They reminisced on the significant success their families achieved by purchasing in down markets.
Today, price and value are at odds with each other. As interest rates increase, prices fluctuate and value lessens.
I previously addressed concerns about the unknowns in the luxury housing market. As each week goes by, more unknowns are being answered and with these answers, the luxury consumer is capable of strategizing for the future. We now know:
• Mid-term elections have delivered a more divided political environment which may inspire more compromise in Congress - and dealmaking.
• Stocks in some Equity markets continue to approach correction with some down 40% or more from their highs. This is much like some over-inflated real estate pricing that spurred this correction process 18-24 months ago.
• December means bonus season. Some bonuses will be as good or better than last year. This may translate to capital investment in the real estate market.
• Rising interest rates are always a concern. The Fed is keeping an eye on the results these rising rates are having and has signaled a potential easing of future increases.
• More cautious bankers are preventing new inventory. This stimulates the buyer who is on the fence. “Buy today because there may not be a choice tomorrow.”
Q4 has been my busiest quarter this year. The deals became more challenging while the following formula for opportunity continues:
Choice + time + lowered prices + negotiability + more knowns = opportunity.
I can help you with your purchase goals. Please call me to discuss how to make price and value meet to execute a smart purchase.
I look forward to sharing more notes with you in 2019.