Brooklyn Market 2019
Calling all real estate sales people 2019 is the year of great change! Or Is it? As we continue to monitor market changes and factors, we are seeing some not so old trends crop up along with a few new ones. But what exactly are these trends an indication of? Here is a Amuse-bouche sized treat into 2019 and beyond!
Amazon Brings Movement and Market Change to LIC – The behemoth of all giants has now solidified their reign by moving into Long Island City better known as Queens Bridge to the locals (Born and raised Queens girl right here!). Expect to see changes like never before as the landscape of what was a quietly shifting enclave of history and multinational commerce quickly becomes the tech hub of the new Millennial and Gen Y constituency. With great promise of paying all of its employees a salary of $150 ,000 we can expect that the need for units both for sale and rent will exceed past demand. This is a fantastic opportunity to hone in on this upcoming change and begin strategy on how to be the go-to agent for this incredibly hot sliver of Northwest Queens. According to multiple sources such as the “’ The Real Deal “and “Curbed we can expect that the rental market will see the most uptick in interest as the “tech bros” as apply titled in “Brick Underground “will not have enough income to purchase the high end and luxury units that have been filling the metal ivory towers of what is known as downtown LIC. This will mean a few things to keep in mind: 1. HQ 2 Employees will be looking for comparable rentals in and around LIC in neighborhoods such as Sunnyside, Greenpoint, Astoria and Midtown east to name a few. 2. What were once of the out the way areas to rent and buy will now become the best optional go-to’s for these newly minted worker bees who are looking for fast commutes and spacious digs. This magnanimous opportunity will bring success to those who are able to see the positive in this change and are strong enough to navigate the increased demand and competition in the years to come. Sounds like closing checks and rental commissions for sure!
Interest Rates OH My! The Fed strikes again! Like a Jedi Warrior Janet Yellen has navigated the likes of now two presidencies as both chair and vice chairwoman of the federal reserve. As the economy has re emerged from what some believe is the worst economic collapse since the depression, we have seen great bounds in all areas of business and commerce. However, none sticks out more than real estate, which has year over year since 2010 seen tremendous growth in all sectors from commercial to residential. Adding fuel to this fire has been the incredible low rates that made funding available for those that have purchase power to jump into the game and claim their stake. But all things that start must have an end or at least a market correction which is what we will see in 2019 with an on slot of upcoming rate hikes. According to bankrate.com the Fed intends to raise the rate in 2019 a projected two more times, which will likely bring the total interest rate to 3% as projected by the Fed. This raise means a few things in a market that is normalizing and showing signs of potential future vitality: 1. Borrowing will be more expensive than it was a year prior 2: Debt will eat more income for many which takes away from their ability to buy 3: Living expenses will eat more than 30% of monthly net salaries. What does this mean for you the agent? Bottom line: Buyers will be much more cautious about their purchases as they look to maximize on whatever they are able to now afford and with this in mind you can expect for concessions and negations to be more intense than ever before. As for your sellers they can expect to make price adjustments sooner than later and for their homes to sit pretty a but longer than desired as the buyers will be carefully handpicking the most cautious risk they can take. But always remember where there is rain the sun will soon follow as this will also be a golden opportunity to hack the challenges that will sharpen your salesman/woman chops and also spark the need to greater understand of market news and education – with the added benefit of even turning some prospective purchasers into renters!
For the love of rentals Speaking of rentals get ready for amazing rental market growth! NYC continues to incur demand in all five boroughs as the outliers become the new hot spot for those looking for a deal in this competitive market. With average one-bedroom rental prices around $2900 and two bedroom around $3500 areas that seemed far less trendy are now the potential Godsend to those looking for a break. The quintessential downtown Brooklyn and Manhattan rentals that were once on the tip of most people’s lips will now be accompanied by the request to see units that are further inland as people look to manage the continued metropolitan rent dilemma. With over 20,000 units coming to the market due to the completion of mega building projects from Hudson Yards in Manhattan to Hunts Point in Queens and much more we will see a variety of options for the on slot of new renters that will be entering the market.
Show Love It’s the South Brooklyn Way : Newsflash ! There are more areas in Brooklyn besides Downtown , Williamsburg and Dumbo ! With a borough that can be considered the size of some mid-western states there is so much culture and life that breeds here in brotherly Brooklyn . As a fellow Bensonhurst / Bay Ridge office native I can tell you first hand that this is a very unique place to work each day . In 2019 we can look forward to the spot light be shown on such on areas such as Dyker Heights, which can be known for its fantastic holiday light displays and Coney Island which hosts an annual Polar Bear Plunge , along with Bay Ridge that never has a dull moment with its constant week and weekend events including the RaggaMuffin Parade and Santa Crawl. Outside of all the fun and splendor these happenin’ hoods provide price points that give options to buyers looking for culture with a dash of residential quiet along with a hint of metropolitan flare. Additionally, even investors looking for a solid purchase with strong potential cash flow could possibly find what they are looking for in this uniquely trendy neighborhood. Don’t sleep on South Brooklyn Friends !
AMAZON HQ2 IS ALREADY PUSHING LONG ISLAND CITY HOME PRICES HIGHER
In-text: (Curbed NY, 2019)
Your Bibliography: Curbed NY. (2019). Amazon HQ2 is already pushing Long Island City home prices higher. [online] Available at: https://ny.curbed.com/2018/12/18/18146208/long-island-city-market-report-amazon-hq2 [Accessed 3 Jan. 2019].
Kevin-r. (2018, December 14). Amazon is in no rush to add workers in LIC and Arlington. Retrieved from https://therealdeal.com/2018/12/13/amazon-is-in-no-rush-to-add-workers-in-lic-and-arlington/
Tech bros won’t buy all the condos and other housing predictions for 2019. (2018, November 29). Retrieved from https://www.brickunderground.com/live/streeteasy-nyc-2019-housing-market-predictions