As we round the corner coming into the second quarter of 2023, the events in the financial market that began with the collapse of Silicon Valley Bank, will undoubtedly impact both buyers and sellers in NYC and beyond. The question is "how"?
With the Fed still raising rates, mortgage rates have continued their decline, although borrowing requirements are becoming noticeably more stringent in the anticipation of the government imposing tighter regulations. That said, well-qualified buyers who are financing at a relatively low loan to value margin and cash buyers will find a window of opportunity in a schizophrenic market where some properties are getting multiple bids while others languish. Those properties with the most action are high quality product that are properly priced in the context of their market segment.
Pending home sales rose by 6.5% last month in the Northeast, while the same stat for the West was a 2.4% decline. While the NYC markets in Manhattan and Brooklyn saw signed contracts up month over month from February to March in every market segment, and the NYC and Hudson Valley markets are brimming with activity, the markets are still less competitive than they were a year or two ago.
In more good news, on the New York City front, the violent crime rate is 26% lower in NYC than in Miami, and 30% lower than in Dallas and Los Angeles, and contrary to proclamations of its death not long ago, Manhattan's population actually grew in 2022.
Speaking of good news, it's more important than ever that we share good news and positivity with each other. A recent CNBC article confirmed one of my long-held beliefs: if you want to raise successful kids, start showing optimism! Educational psychologist and parenting expert Michele Borba explains that "if pessimism builds, and it becomes personal, permanent, or pervasive, it robs our kids of hope." With kids, and with your fellow human beings, your attitude is contagious. Optimism helps us all handle life's ups and downs. With optimism, we see challenges not as insurmountable problems we should give up on, but as obstacles to overcome. Optimism in kids has been shown to be one of the biggest predictors of success, and if it's so for kids, it's the case for all of us.
My parting words for you for now are to join me in making every effort to reflect rather than react, be kind, DO GOOD in your world, and last but not least, HAVE FUN.
"DO GOOD AND HAVE FUN" acknowledgment: Rhinebeck Rotary & Louis Turpin. Speaking of Rotary, as an incoming Club president, I encourage you to check out Rotary!).
I love hearing from you, so reach out to me with questions, comments, or just to touch base, any time.
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