As the year nears closing, we collectively wonder what will happen in our industry in 2015.
Today we asked our sales managers, Stacey Max and Veronica Raehse, for their sales market predictions.
Stacey Max says:
“The number of sales exclusive listings that BOND agents have put on the market in 2014 was consistent with the number of new exclusives that we had the previous year. I think this is amazing considering that the total inventory in the city has decreased by about 18%. My prediction for 2015 is that our sales agents will continue to rack up the exclusive listings and the sales transactions that are almost guaranteed to follow.
While I’ve said this before, I do feel that market pressures will continue to influence the sellers, who have been waiting to finally put their properties on the market. Prices are strong, but appreciation and buyer activity has slowed a little since the Spring, and with the threat of increasing interest rates and increased competition from other sellers, more home sellers will decide to make the move. Our impeccably-trained BOND agents will be here to help them!”
Veronica Raehse chimes in:
“I think there will be different segments of the market that will have different stories for 2015. The middle market will continue to be strong; it’s the segment of our industry that is the last to slow down and the first to rebound. New construction that is geared towards high-end that is on the market, currently combined the additional product coming on in 2015, are going to be an interesting to watch. The buyer of this product is taking their time viewing and analyzing since they will have the luxury of more product to compare. I think real estate agents are struggling to find business, and middle market buyers are struggling to find something to buy. Keeping your eye on prime Manhattan is a lost cause for some, so the push to go “further out” in territory will continue. Watch Upper Manhattan, Bushwick, Riverdale, Greenpoint, LIC, Sunnyside, Jackson Heights all start to evolve.
Interest rates will finally start to rise–how much and how fast will have an impact. Increased rates and the calculation of debt-to-income ratios will make it more difficult for buyers currently on the edge of not being able to afford to purchase.
I think the Baby Boomer’s will continue to spend some of their wealth in cash purchases for their dream home or large gifts so their children can buy. It is a wealthy generation.
I think 2015 is going to be a great year, I think the insane appreciation of prices seen in 2013 and most of 2014 will slow to a more normal pace, I think we will see some increase in product.”