Well, we are now in the last quarter of what I think and believe to be the most tumultuous, divisive, sad, tragic, crazy, and most insanely ridiculous year and moment in time in our country’s 244-year history. For several reasons, I will not elaborate on all my personal reasons and thoughts about why this is and why it shouldn’t have been, so I can stay apolitical political and non-partisan. Maybe after the election that is coming up where I am the chair of the Russell Gardens election location, I just might reveal how I feel and have felt all along.
As far as the pulse of the market, it’s still zooming ahead strong as heck for homes due to 3.7 months’ availability right now (normally it’s six to seven months), the lowest on record, and still the lowest interest rates in 50-plus years. However, there are segments of our market that are a bit softer like the condo and coop area. The reason for that weakness is the majority of the current expatriates (400,000 plus and counting) who have fled Manhattan and other major cities to destinations east, north, south, and west is they are more interested and inclined to purchase homes than the condos and coops that they resided in. They’ve already had their experiences with the population density and congestion issues of city life. The Covid-19 pandemic has “broken the camel’s back” and was the final and last straw. Their mindset has drastically been altered and now they yearn for more greener pastures in the burbs, providing more space, privacy, quiet, and relaxing surroundings, and just a much safer, healthier, and happier environment.
And extremely important and most critical in their decision-making are the quality and highly ranked schools, which are paid for and included in their real estate taxes without the extra cost of those expensive private entities in the cities. So everything looks “peachy keen” now, right? But I still wouldn’t throw caution out the window or to the wind, but I would be very cognizant of everyday events and happenings around the globe. As I see it, some sudden recent moves in the stock market could be a precursor to what the future might hold and as they say “October can sometimes be a very challenging and unsettling month before a presidential election/ So be very careful.
I do see some potential storm clouds on the horizon, but I am not saying that I am a perfect predictor of future events, or 100 percent (maybe 99.9 percent, lol) accurate or close to the famous prognostication if you believe in Nostradamus. But my crystal ball says to be careful and cautious about why, how, what, and where you will be purchasing whether it be a home, HOA, Condo, Coop, investment property, or even a residential rental.
Do your homework by analyzing the most current statistics as well as the multitude of variables, including your budget and mortgage costs, which are the most crucial items to consider right off the bat. Also examine the monthly costs, R.O.I. (return on investment), location, school district and potential rental income in this catastrophic and deadly Covid-19 pandemic environment that we are currently experiencing. Also consider the cost of repairs, potential environmental issues, and make the right decision to engage, interview and hire a knowledgeable, professional Broker to handle all the details. Then and only then will you be more properly prepared to move ahead (or sometimes I say “go to war” and to have the necessary knowledge and important and critical tools to determine what makes sense or not with the purchase of your home, HOA, condo, co-op, and even rental or commercial properties.
The future can be extremely bright or dismal and slippery and it will primarily depend upon which side of the fence you are currently situated and what your priorities are at the moment and will be going forward. Everyone really does have choices, but the benefits and spoils will always go to those who learn what to do by hiring the best Real Estate Broker that you can find to undertake the job and who will take the proper steps down the correct and right path and who does the right thing, is candid, straightforward, truthful, transparent, logical and pragmatic and doesn’t take shortcuts. By studying Real Estate Brokers as well as other professionals in their specific fields of expertise and endeavors there is a certain pattern of behavior and by observing, listening, then learning, absorbing, practicing, and applying and doing the required and important homework, you will most always minimize your downside and maximize your upside.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 39 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). For a “FREE” 15 minute consultation, a value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com Also, email or snail mail (regular mail) him with your ideas or suggestions on future columns with your name, email and cell number and he will call or email you back.