January 2022: What It’s Worth
Happy New Year! As we move into the third year of the pandemic, instead of New Year’s resolutions, let’s just try to be kinder to ourselves and others. Let’s do more of what we love and less of what doesn’t inspire us. And in case you were wondering what’s going on with this stop-and-go real estate market, we have a prediction: 2022 will find us the balance we all need. Read on!
The Story: Algorithms vs. Emotions - A Balancing Act
The Jump Off
Most sellers feel their home is worth more than their neighbor’s. Driven by emotion, their feelings were often validated by checking the Zestimate, a market estimate computed by Zillow’s proprietary formula. So confident was Zillow in this algorithm that it entered the world of house-flipping, only to sell countless properties at a loss. Real estate is an emotional transaction driven by supply and demand. And often, it is the buyers’ emotions that matter most. Formulas can’t always account for that.
The last two years have really driven this point home. In NYC, where backyards aren’t commonplace, the pandemic has set an even higher premium on outdoor spaces, and the price-per-square-foot calculation doesn’t always hold true. Townhome prices are expected to keep soaring as urban buyers seek out space and privacy. And as domestic creature comforts continue to be important in the WFH world, Millennials and Boomers alike will be bidding on amenity-driven properties.
The Wrap Up
While last year the suburban home market was on fire as desperate buyers bid on greener pastures, NYC has been catching up. Rents are on the rise (though they haven’t yet surpassed the pre-pandemic rates) and the city is settling into a less panicked version of itself. Monetary constraints and inventory will dictate pricing in 2022 more than in the recent past. We predict that this year’s algorithms and emotions will come more into balance with price levels reflecting seasonal patterns of supply and demand.
The Cheat Sheet
New year, new look! Whether you’re looking to sell or just freshening up the place, here are some great ways to declutter your home. Ready for a full-on redesign? Pandemic living has influenced interior design trends, with a move toward more stimulating maximalist décor and a focus on how spaces make us feel nurtured and sustained as we continue to spend more and more time in them. And though a wallpapered boho-luxe great room might not be for everyone, there are definitely some great takeaways for 2022.
The Gabriele Moment
Looking back over the last two years, it’s been a crazy ride. Even when the world stopped, we didn’t. When it felt like the sky was falling, we were there for our people, pushing the boundaries of our comfort zones, leaving the safety of our homes to help over 100 clients buy and sell real estate during the pandemic. We are grateful for the trust that you have put in us to help you navigate the market. One thing’s for sure, we New Yorkers just keep bouncing back. We’re ready to keep going and look forward to helping you get what you want in 2022.