Home buyers in these markets may see significant changes soon.
Transcript:
CONWAY GITTENS: And talk to me about the trends that you’re seeing in the real estate market. During COVID, everybody was moving to a place where they wanted to live because they could work from home. Now things have changed a little bit. Talk to me about what the new normal is. Where are people moving. Where are people buying it. Talk to me about, urban versus suburban. Talk to me about the dynamics that are happening.
RYAN SERHANT: At the end of 2020. When we started Serhant, we started a company. We started on September 15, 2020, and I remember doing interviews when people said, are you crazy. You’re starting a real estate company in New York City. The city is dead. It’s over was not true, OK. But I called them and I said, what we’re going to experience now is you’re going to experience an influx of COVID buyers leaving urban areas and buying elsewhere, which is exactly what we saw, whether it was in New Jersey, Connecticut, Florida, et cetera. Then we’re going to experience COVID Sellers who years later, which is what’s happening now, saying, OK, that impulse purchase I made in 2021 or in 2020, amazing house. I miss my friends. I missed the school my kids went to. I’ve had another kid I want to grow up on the same block that I was at. My parents are still there in that market. I got called back to the office. Damn it. I got to go back and be in the conversation at the office versus trying to build my business on Zoom. And so I think you’re going to see a resurgence back. Two cities. I think that’s going to be probably the biggest thing we talk about at this time next year. Cities like New York City are going to be stronger than they’ve ever been before. You’re going to see still a unique kind of transplant from, let’s say, a market like California, where buyers are saying what, I can go live in New York, I can go live in Miami, I can work from home from there, or it’ll cost me the same amount of money to live in New York City or South Florida and fly back to California a couple of times a month to keep the same job than it would to actually afford housing prices in California. We’re seeing that now, too. And so I think you’re going to see a lot of unique trends come to light by this time next year.
CONWAY GITTENS: And are there like secondary markets like that benefit like a runoff market, so to speak?
RYAN SERHANT: Yeah, we are. I mean, if I talk about locally, we’re selling a project right now in Williamsburg, in South Williamsburg, it’s called Williamsburg wharf. I think we’ve raised prices 10 times. Might be more than that because the demand we have is so strong from people in Manhattan and an international buyer base where we’re saying pre-covid. I would have looked at Manhattan today. I’m looking at Williamsburg and I’m looking at Williamsburg wharf and I’m looking at quality developers in that project. Is the Naftali group. Really looking at quality construction, quality design and paying for quality. Our average price point there is well over $2,000 a foot for South Williamsburg, which if you had told me that five years ago, I would have said I agree because I was working on it back then. But I’m sure a lot of people would have said, no way, impossible. And we’re raising prices every day. We’re seeing a lot of markets across New Jersey, Connecticut, Rhode Island, Delaware, all over Florida. Still stay really strong because there’s just a significant lack of supply. We need millions of homes created, which I think with the incoming administration. One of the things they talked about that I thought was interesting anyway earlier this year was who is the biggest land owner in the United States. It’s the federal government. You want to solve the housing crisis. It’s not giving people more money to then go increase prices all day. It’s been saying, hey, maybe we should take some of this federally owned land and in the state owned land and use it to build more houses, to provide more supply, which will then bring down pricing, which if you combine that with lowered interest rates, we start having a very different conversation about housing affordability.
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