Prices are flat and volume through the roof…nuff said! OK, OK, let’s share and elaborate a bit. First here are links to all of the major reports for you to peruse (in alphabetical order and not any order of preference):
Brown Harris Stevens
Corcoran
Halstead
Prudential Douglas Elliman
StreetEasy (remember that StreetEasy is a consumer-centric site…just sayin’)
You can see from the reports that the overall picture clearly shows that prices have dropped year over year by about 20% which makes it no surprise at all that sales volume was up about 80%. Obviously buyers were delighted to see some values return to a market place that had been out of control for the last decade.
My personal sentiment about what the market has done is very much in line with these numbers but StreetEasy’s report is most in line with what I have seen at The Heddings Property Group. Here is a quick summary of the StreetEasy numbers
- Closings were up 13.9% from last quarter and 65.27% from same quarter last year.
- Inventory was up 1.6% from last quarter and DOWN 6% from same quarter last year.
- Signed contracts rose 21.9% from last quarter and 17.6% from same quarter last year.
- Days on the market for condos decreased 10.2% to 136 days from last quarter and 9.8% from last year.
- Days on market for co-ops decreased 7.7% to 125 days from last quarter and 11.4% from last year.
- BROKEN CONTRACTS INCREASED 47.9% from last year which is indicative of just how shakey and difficult transacting business has been in recent months.
I’m pleased to report that although the big 4 firms numbers don’t match exactly that this is the first quarter in recent memory where the message seems to be the same and consistent with reality. What a refreshing thing to see as the industry strives to become more transparent!
That said, if you’re an active buyer or seller in today’s Manhattan real estate market, don’t put all the weight of your decisions into these reports. They are merely a guide of what has already happened and not terribly significant when making decisions TODAY. They are also statistics and we all know that statistics can skew our perception of what has really happened in the market as each micro-market in Manhattan yields very different numbers.
And lastly, where are things now and where are they heading? Hold on a moment while I look into my crystal ball. Oh wait, don”t need that to report what is happening now. Mortgage markets have opened up a bit (not much) to allow more people to get financing and with rates at historical lows for the near term, people are shopping and deals are happening albeit at a slower pace than Q2.
Going forward, it appears that rates will remain low through the end of the year barring any more insanity in the world (could happen any moment of course) and prices should remain stable. 3Q numbers will likely show a drop in sales volume, flat inventory, stable prices and more days on the market. We’ll see in September to see if I’m correct.
If you haven’t already seen this, check out this incredible offer that Prudential Douglas Elliman Managing Director Ilan Bracha is offering to the next broker to procure a signed contract at The Centurion. I’m not generally a fan or believer in broker incentives but rather prefer that incentives be passed on to the buyers.
Having said that, this totally got my attention and brought The Centurion into the forefront of my mind. Now I don’t have anyone to take there and I wouldn’t sell it unless it was a perfect fit for my buyer but I paid little attention to the building prior to this offer and now it is on my radar. I imagine it is on a lot of agent’s radar now! Well done Ilan!!! Exactly the type of creative marketing that is necessary in today’s marketplace to help a property stand out among the rest.
.jpg)
Today’s exciting news via our press release. We were also featured today in The Real Deal.
CONTACT: Jennefer Witter
The Boreland Group Inc.
718.543.1503
FOR IMMEDIATE RELEASE
THE HEDDINGS PROPERTY GROUP DECLARES INDEPENDENCE
Firm is New York’s Newest Residential Real Estate Brokerage House
NEW YORK, June 29, 2010 – Just in time for Independence Day, The Heddings Property Group LLC (www.heddingsproperty.com), a leading New York City boutique brokerage team, today announced that it is now a fully formed, independently-operated residential real estate firm. Led by respected real estate industry veteran and top-producing agent Douglas Heddings, who boasts nearly 20 years of experience at the city’s top firms, The Heddings Property Group provides big city knowledge with high-touch, one-on-one customer service.
“We are not simply another New York City boutique real estate firm,” states Heddings. “We are seasoned professionals who are continually driven by a quest to put our buyers’ and sellers’ interests first, and to excel by capitalizing on technology and staying above the curve in every possible way. In spite of this trying economic climate, we think there is a real need for the level of service and honest, time-tested real estate knowledge that we provide to our clients.”
A critical part of The Heddings Property Group’s difference is its brokers. Heddings prides himself on creating a collaborative, supportive team environment, where integrity, expertise, character and a positive attitude are all valued and rewarded. “In fact, I hand pick each agent to ensure that they are a fit with our team and that they share our commitment to superior customer service for buyers, sellers and investors. Plus, all of our agents receive commission for each deal that closes, a unique compensation structure that aligns the entire team with the same agenda as the customer: complete satisfaction.”
Prior to launching the independent brokerage, Heddings led successful teams at top-ranking residential real estate firms Rutenberg Realty and Prudential Douglas Elliman and worked at Halstead Property, specializing in the sale and leasing of Manhattan residences.
Paul Purcell, co-founder of Rutenberg Realty, says of the company’s founding, “I have known Doug for 15 years and we are excited for him and his team. He has always wanted to build a firm of his own and we, at Rutenberg, were thrilled to be able to help him in the transition. I think we gave Doug the confidence that enabled him to take that first step toward independence.”
As one of Manhattan’s first broker bloggers and a pioneer of using professionally filmed videos to market properties, Heddings values innovation. The Heddings Property Group brokers employ cutting-edge technology to market properties and better service clients, including the use of a listings syndication service, which uploads comprehensive information about a property — including professional high resolution photographs, floor plans, quality video footage and a detailed description of a home — and disseminates it to more than 30 real estate-related websites across the globe and in 32 languages. The syndication also welcomes any of the almost 30,000 licensed agents in the New York metropolitan area to list The Heddings Property Group’s exclusive properties, in an effort to procure the best buyer for a home. This additional exposure for sellers goes above and beyond that of the marketing efforts provided by more conventional brokerages.
Another technologically advanced service offered by Heddings and his team are Internet banner ads specifically targeted to a property’s demographic, including placement on prominent sites that appeal to high net worth individuals such as FOXNews.com and MSNBC.com. This strategic marketing results in traffic of 60,000 to 80,000 impressions a week and hundreds of clicks from potential buyers per property on a given week.
“Our philosophy, when we exclusively market a property, is that the home belongs to the seller and thus is not our proprietary information. It is our job to use everything available to us to reach the broadest spectrum of potential buyers,” explains Heddings, who notes that this “customer first” mentality extends to how he and his agents work closely with licensed agents at other firms, not just those attached to specific trade organizations. “Our willingness to put the customers’ needs above the commission and openness to trying new tools to achieve that mission has led to us being a beta tester for the latest technology. For instance, we were the first to offer buyfolio.com, a listings sharing service that allows brokers and buyers to better communicate with one another, to our clients, and are now able to market sophisticated presentations to sellers right on our iPads. We were also the only real estate firm to disable analytics from our Virtual Office Web (VOW), a multiple listings tool, giving prospective buyers complete anonymity regarding their property searches.”
Heddings adds, “We are able to create the most ingenious, creative solutions for our clients in their home buying, investing or selling experience. This flexibility is an asset in an ever-changing market.”
The group has always enjoyed referrals and repeat business. One reason is that Heddings and his agents make themselves readily available to their clients. Another is that they will tell their clients what they need to hear as opposed to what they want to hear. “Sugar-coating doesn’t work,” says Heddings. “We have to give them realistic expectations of what works in this market and for their particular situation. Our counsel is based on real-world and real-time experience. And they appreciate our honesty and tactful frankness.”
Smart marketing and pricing are also hallmarks of The Heddings Property Group experience. The team knows how to reach qualified buyers and pricing to sell, its brokers can move a listing in a timely, efficient manner with minimal stress to the seller. Best of all, Heddings is apprised of each and every deal, giving team members the autonomy to carry through and “seal the deal” with a client, or step in as needed.
Though The Heddings Property Group plans to remain a boutique firm, with no more than 15 agents per office, growth is still definitely on the horizon. “I am interviewing potential new agents and will open additional office locations in Lower Manhattan and the Hamptons before 2010 is through,” Heddings notes.
Knowledgeable about regional and national real estate, Heddings is often called upon by the media for his expertise. He is regularly quoted in The New York Times, The Wall Street Journal, The New York Post and New York Magazine, as well as The Real Deal and Brokers Weekly. He has also appeared on New York 1 News, NBC’s Today Show, Fox Business Live and Inman News, and has been a guest speaker at Inman’s Real Estate Connect conference and GreenPearl events.
About The Heddings Property Group LLC
The Heddings Property Group LLC firm is based in Manhattan and provides quality real estate services to buyers, sellers and investors alike. Founded by real estate veteran Douglas Heddings, a top-ranking broker with nearly 20 years of real estate expertise, the boutique firm functions independently, affording its clients creativity and ingenuity in marketing and syndicating property listings for the best experience possible. To learn more about The Heddings Property Group, visit www.heddingsproperty.com or follow Heddings’ award-winning blog www.truegotham.com.
I’m going to share an anecdote here that I believe illustrates precisely what a broker should and shouldn’t do when working with a buyer and/or seller of residential real estate.
First the players:
Broker: Yours truly
Buyers: My best friends (let’s call them Biff and Buffy to protect their anonymity)
Sellers: The same aforementioned Biff and Buffy as they are attempting the very challenging yet possible simultaneous purchase and sale.
Biff and Buffy are best friends of mine (our children are best friends too) and approached me about 6 weeks ago to determine whether they should move to a more desirable apartment. Their current home is beautiful but they were looking for something a bit larger with some extraordinary qualities like stunning views, outdoor space, or an extra bedroom (we got the views and the outdoor space).
Now typically, I refer friends and family to a member of my team in an effort to both preserve my relationship with them as well as keeping their financial situation confidential. I have found that many friends and family aren’t keen on full disclosure of their finances during the transaction process. That said, I decided that i would handle the sale of their property (no financial disclosure needed there) and another member of my team would assist them with the purchase. Not a bad idea in theory but (FIRST MISTAKE) I found myself unable to detach from the buy side transaction as they are such dear friends.
Collectively we decided that Biff and Buffy should look at a few properties to determine if indeed there was anything out there that would urge them to leave their already beautiful home. Of course they fell in love with something their first week looking (SECOND MISTAKE-not managing expectations if this should happen). At that moment, we needed to strategize on how to best sell their current home so that they could possibly proceed with the purchase of their new love which they viewed on a Sunday. (DID IT RIGHT) On that Thursday, we put their home on the market of course with professional photos, floor plan and a global marketing plan that insured that the broadest population of buyers saw the home. We received 6 offers after only 3 days on the market and one open house.
So despite the fact that we had 6 offers and accepted one of many bids over the asking price, (DID IT RIGHT)I still wasn’t comfortable having my friends bid on the other property without a signed contract on theirs. Well the stars were aligned and we received a signed contract back for their place that Friday and submitted a bid for the new home the following Monday. Everything happened so quickly that (ANOTHER MISTAKE…oh my, sloppy) communication throughout this expeditious process broke down on my side. My intentions were always good but I really needed to communicate better precisely what was happening with both transactions as they were happening. I was so set on making sure that my friends got what they wanted and I made assumptions about what they already knew about buying and selling a home.
After a tedious and stressful negotiation in which I was very much involved (DID IT RIGHT)over the contract for their purchase, terms were agreed upon, and a contract was signed.
This morning I received an email from Buffy asking me about transfer taxes on their sale. Holy cow!!!! I forgot to inform them about all of their closing costs (MY FINAL MISTAKE…at least in this transaction I hope!)
So as you can see, my desire to do everything in my power to make sure that my friends got what they wanted resulted in some sloppy brokering on my part. That said, they are now happily in contract on both the sale of their home as well as the purchase of a gorgeous and grand 2BR condo with a massive terrace and views!
The moral of the story: Don’t ASSUME (you know what they say about that!) that your clients whether buyers or sellers are familiar with any aspect of the transaction. Always:
- Manage expectations throughout the process (my clients weren’t familiar with 10% contract deposit due at contract signing)
- Let your clients know the buying and selling process and what is happening every step of the way
- Discuss closing costs giving a estimate of what they will be.
- Ask your clients continuously if they have any questions about the process.
- And if you’re every sloppy like this, learn from your mistakes…I know I have!!!
So in the end we GOT IT RIGHT and everyone is very happy despite a communication breakdown!
I met Joe several years ago. He is truly a pillar of the national real estate community and a forward thinking contributor of some major changes and innovations in an industry that so desperately needed transparency and a shake down.
I just learned tonight that he was recently diagnosed with a brain tumor. Life is so incredibly fragile. Please pray for Joe and his family and consider a donation no matter how small to help with medical expenses.
Here is the blog entry from friend and fellow blogger Jay Thompson aka The Phoneix Real Estate Guy from May 10th:
This is going to be one of the most difficult posts I’ve ever written…
Many reading this know Joe Ferrara. If you haven’t had the honor of meeting Joe in person, then you are missing out on knowing one of the finest human beings to ever walk the face of the planet.
Joe is one of the co-founders of the Sellsius Blog, a site chocked full of goodness for real estate agents, brokers, buyers and sellers. He, along with his partner at the time Rudy Bachraty, also were the geniuses behind Blog Tour USA. In the summer of 2007, Joe and Rudy wrapped an RV and set off across the country stopping in many locations and bringing real estate bloggers together. They defined social media before social media was cool.
I don’t think it is an exaggeration to say the Joe Ferrara is one of the people who is primarily responsible for bringing the “re.net” together. His contributions to real estate, and literally hundreds of real estate practitioners, knows no boundaries. Joe is an extraordinary speaker, teacher, author, and friend.
And Joe Ferrara is very sick.
He’s been recently diagnosed with a very aggressive malignant brain tumor. I’m not a doctor, and I haven’t been able to speak to Joe since the diagnosis, but he is having a rough time right now and is currently in an Intensive Care Unit in a Pennsylvania area hospital.
Joe’s good friend Scott Forcino has been in contact with Joe’s wife Sandra, who is understandably over-whelmed right now. Sandra has granted permission to get the word out about Joe’s condition, and has graciously allowed us to try to raise some funds for Joe’s medical expenses, which are probably bordering on the absurd.
I have set up a PayPal account to accept donations for Joe’s expenses. You can donate by clicking on the donate button at the top of the sidebar on the right. PayPal is a secure site, you do not have to have a PayPal account, and you can donate via credit card, or “eCheck” (electronic draw from your checking account). If you have a funded PayPal account, you can also use that.
If you have a blog or website and would like to add the donate button to it, just copy/paste the code in this text file.
I’m in the process of setting up a site to collect donations at joe-ferrara.com (site is not active yet, but will be shortly). In addition, there is a “Friends of Joe Ferrara” Group that has been started on Facebook.
Please help spread the word. I realize times are tough for many, but they are tougher for Joe and his family. Any amount you can donate would help. If it fits your beliefs, a quick note to the man upstairs sure wouldn’t hurt.
Hang tough Joe, you have a LOT of friends out there that care deeply for you.
The ramifications of the debacle in Greece and a wild day on Wall Street yesterday have yet to be seen but word across the real estate industry seems to be that the Spring market has heated up…for now. Now although I’m not a fan of these types of one sided articles that appear to look through rose colored glasses, this one is so positive that I had to share if you haven’t read it already. Here’s the dangerous headline from Jason Sheftell at The Daily News: Real estate’s on a roll! Experts dish on why housing is a hot market again.
It all started a few weeks ago. First came the return of Tiger Woods, then the volcano eruption, then the sudden return of the real estate market. All over the five boroughs, reports started flying in about astronomical sales figures, bidding wars, and houses selling after just two days on the market. At first, I didn’t believe it. A spring rebound? The federal tax deadline?…
So why is this dangerous? Because it isn’t the case across all sectors of the market. It is articles like these that often make an agent’s job much more challenging as they try to explain to sellers why their home hasn’t sold. I would simply elaborate on or add the following to Sheftell’s article:
- Pricing is key
- Special apartments with outdoor space, amenities, etc are selling more quickly than others.
- The under $1M market has more inventory and is not as hot as the $1M-2M market which seems to be the hottest right now.
And to illustrate how special homes are selling in today’s market, a little anecdote. This apartment that was featured on OpenHouseNYC with our own Jennifer Breu a few weeks back is located in a building that allows no dogs…until NOW. The apartment was priced at $2M and was on the market for a few weeks with no bids. The agent, colleague David Rosenberger, convinced the Co-op board to accept dogs by assessing a $250/month fee and asking the new owner to soundproof the home. After the co-op agreed to accept dogs, the apartment received 5 bids and is selling over the asking price of $2M. So how much is that no dog policy costing you? Congrats David on a job very well done!
It’s no surprise to me that today’s Biggest Brokerages piece in The Real Deal highlights a competitive banter between Corcoran’s Pam Liebman and Prudential Douglas Elliman’s Dottie Herman while the most remarkable stat that I see in the report is that the ranks of Charles Rutenberg (new and improved sexy web site on the way) have grown exponentially!
A 52.1% increase in the number of Manhattan agents! A 64.9% increase in the number of Manhattan listings! A 10.7% increase in the number of listings per Manhattan agent. And check this out:
A whopping 151.6% increase in $ volume while 9 of the top 12 firms in this category saw some major declines!
So for those who continue to doubt the model, just watch as Charles Rutenberg quietly becomes even a greater force in the Manhattan residential real estate marketplace…and a Rutenberg commercial division has arrived too!
As many of you know I have been a long time supporter of City Harvest and their many programs that help to feed the hungry here in the Greater New York area. Their Skip Lunch Fight Hunger program helps feed hundreds of thousands of children each year.
Well having enough food to eat is a major issue for so many but another major problem in its own right is what those who do have enough food are choosing to eat. Celebrity Chef and incredible personality Jamie Oliver (sign the petition here) has recently launched a Food revolution to help bring healthy choices to our children’s classrooms around the country. Here is his latest news update:
Jamie is not the only one who has joined this very important crusade. Local Chef Bill Telepan is spearheading a similar effort in 5 NYC schools where all of the food is prepared fresh by volunteers. Other Chefs across the country are following their lead and hopefully this will really serve to change the way our children and we as parents view diet and exercise.
The 2 day GreenPearl Real Estate Marketing and Technology Academy kicks off tomorrow with an unbelievable cast of over 40 speakers including:
Dawn Doherty, VP Strategic Development, StreetEasy
Stephen Kliegerman, Executive Director, Halstead Property Development Marketing
Jonathan Miller, President & CEO, Miller Samuel; and Publisher, Matrix and Housing Helix
Shaun Osher, CEO, CORE
Frederick Peters, President, Warburg Realty
Diane Ramirez, President, Halstead Property
Noah Rosenblatt, Founder & Publisher, Urban Digs.com
Suzanne Rosnowski, Partner, Quinn & Company PR
Lockhart Steele, Publisher, Curbed
Jacky Teplitzky, Managing Director, Prudential Douglas Elliman
Yours truly will also be speaking on How to Get Started with Online Video. Hope to see you there!
Also looking forward to Patrick Healy’s presentation on Social Media 201. Check out this video on the impact that social media is having as the number of users grows exponentially:
