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Real estate in 2019: Definitely the year of the buyer, Dolly Lenz Real Estate Managing Director says


DAGEN: HESITATION IN THE HOUSE MARKET, DESPITE FALLING PRICES BUYERS MAY BE FORCED TO CUT BUDGETS. ACCORDING TO A RECENT REPORT, RISING MORTGAGE RATES MIGHT PREVENT PEOPLE FROM GETTING THE MOST FROM THEIR MONEY. JOINING US NOW IS DOLLY LENS AND JENNY LENS. GREAT TO SEE YOU.>>HAPPY NEW YEAR. DAGEN: HAPPY NEW YEAR. YOU KNOW WHAT, THE YIELD ON THE 10 YEAR TREASURY IS FALLING TO ALMOST A YEAR LOW THIS MORNING, THAT WOULD BE GOOD NEWS, GREAT NEWS FOR HOME BUYERS. BUT WHAT DO YOU SEE AS THE CHALLENGES IN THE NEW YEAR?>>AFFORDABILITY IS GOING TO BE THE WORD OF 2019. THAT’S A GOOD WORD FOR BUYERS, A BAD WORD FOR SELLERS. SO WE’RE GOING TO HE SEE SELLERS HAVE TO — SELLERS HAVE TO ADJUST OR LOOK AT OTHER EXIT STRATEGIES. AND BUYERS SHOULD JUMP IN. THIS IS AN OPPORTUNITY TO BUY.>>IS IT A GOOD LENDING ENVIRONMENT FOR BUYERS, PARTICULARLY MILLENNIALS WHO FINALLY SEEM TO BE GETTING INTO THE HOUSING MARKET.>>I’VE BEEN WAITING FOR –>>–SHE’S GOT THE INSIDE TRACK.>>I’VE BEEN WAITING FOR A COUPLE YEARS NOW. PRICES ARE FINALLY COMING DOWN. AND I FOUND A SELLER THAT’S WILLING TO SELL AT A PRICE I THINK THE APARTMENT IS WORTH AND I’M JUMPING IN. I’M TALKING TO MY FRIENDS AND MY CLIENTS ABOUT THAT AND –>>SORRY, BANKS ARE SHOWING UP FOR THOSE FIRST TIME HOME BUYERS?>>THEY ARE. EVERYBODY HAS TO ADJUST. BANKS INCLUDED. OTHERWISE THEY WON’T HAVE ANY BUSINESS. THEY’RE REALLY LOOKING AT SOMETHING AND SAYING HOW CAN I HELP YOU MAKE THIS LOAN. CHERYL: REAL ESTATE IS ALWAYS LOCAL. WHAT ARE THE HOTTEST MARKETS YOU’RE SEEING ACROSS THE COUNTRY?>>ACROSS THE COUNTRY? MIAMI. LOS ANGELES. EVEN THOUGH THE PRICES ARE DOWN, THE PRICES ARE DOWN, ARE A GOOD INFLECTION POINT TO PURCHASERS JUMPING IN. PEOPLE TALK ABOUT PRICING. PRICING MAKES BUYERS JUMP IN. RECENT SALES WE SAW, FOR EXAMPLE, CELEBRITY SALES –>>MARCH CUBAN JUST BOUGHT A PLACE IN LAGUNA BEACH. KANYE WEST IS BUYING IN MIAMI. JARED: MYRED: MY AD: MY AM.DAGEN: HE BOUGHT IN SOUTH BEACH.>>>FOR KIM, HER CHRISTMAS PRESENT.>>HE’S ALWAYS IN THE NEWS. TOM BRADY AND GISELLE, THEY SOLD AND BOUGHT IN THIS MARKET. THAT’S ANOTHER KEY THING. IF YOU’RE SELLING, DON’T WORRY SO MUCH IF YOU’RE GOING TO BUY BECAUSE YOU’RE GOING TO BUY IN THE SAME MARKET.>>IF YOU TAKE A 10% HAIRCUT, AND YOU’RE BUYING FOR 10% LESS, IT DOESN’T MATTER.>>A LOT OF THE HIGH END HOMES HAVE HAD TO CUT ASKING PRICES. SOME OF THE PROPERTIES SAT ON THE MARKET FOR A LONG TIME BEFORE MOVING. YOU’RE SEEING ADJUSTMENT. DAGEN: THE TOP END OF THE NEW YORK REAL ESTATE MARKET SEEMS TO BE WHERE THE PRESSURE IS. YOU DON’T HAVE AS MANY SAUDI AND CHINESE BUYERS.>>LET ME SAY BOO HOO FOR THOSE THAT ARE TRYING TO SELL A $50 MILLION APARTMENT. NOT 50. BUT $15 MILLION APARTMENT. THAT’S REALLY WORTH 7. I TO I WO I WANT TO KNOW, WHAT ABOUT YOUR BARGAINING POWER WITH THE SELLER. EVEN SOME — AN EXAMPLE OF LIKE WHAT YOU EXPERIENCED, LIKE ARE YOU — IS THE BUYER IN CHARGE NOW?>>YEAH, I THINK DEFINITELY 2019 IS THE YEAR OF THE BUYER. SELLERS ARE GOING TO HAVE TO MAKE CONCESSIONS. AND THAT’S WHAT MY SELLER DID AND –>>EXACTLY. THE PERFECT EXAMPLE. HER APARTMENT WAS LISTED FOR ALMOST DOUBLE WHAT SHE GOT IT FOR. RIGHT. AND THE REALITY IS, SHE’S THE ONLY BUYER THAT THEY HAD AN OFFER FROM. BUYERS HAVE TO BE AGGRESSIVE, BID ON MULL TILL BID ON MULTITILL BID ON MULTIPLLL BID ON MULTIPLEL BID ON MULTIPLE PROPERTIES, TRY TO GET OUT OF THE ZONE THAT YOU HAVE TO HAVE THREE BEDROOMS, MAYBE TWO BEDROOMS AND A MAID’S ROOM COULD WORK FOR YOU. WITH THE INTEREST RATES BEING HIGHER, LOOK TO SEE HOW YOU CAN MAKE THUNDERSTORM MAKE -HUNDERSTORM MAKE –UNDERSTORM MAKE — MDERSTORM MAKE — MAKRSTORM MAKE — MAKESTORM MAKE — MAKE TORM MAKE — MAKE THAM MAKE — MAKE THAT UP. DAGEN: YOU’RE MAKING A FACE. CHERYL: THE NEW YORK REAL ESTATE MARKET, I KNOW THAT’S YOUR SPECIALTY, I THINK WE’RE SEEING A FLIP RIGHT NOW. I THINK TO YOUR POINT ABOUT MILLENNIALS, I THINK YOU’RE GOING TO SEE A LOT MORE OF THAT LOWER END INVENTORY IN NEW YORK ACTUALLY START TO REALLY PICK UP BECAUSE OF WHAT YOU’RE TALKING ABOUT WITH PRICES. IT’S A GOOD THING FOR THE YOUNGER GROUP.>>I MAKE A FACE BECAUSE I’M WONDERING WHERE WE GET TO A PLACE WHERE NEW YORK, LOS ANGELES, EVEN LONDON WILL BECOME A LITTLE MORE AFFORDABLE FOR MIDDLE CLASS OR MORE AVERAGE BUYERS OR IF THEY’RE STILL GOING TO STAY AT THE HIGH END. EVEN IF PRICES ARE COMING DOWN, NEW YORK IS STILL A STRATIFIED MARKET. ARE WE GOING TO SEE LOSEENING IN THE MIDDLE THERE?>>I THINK WE’LL SEE LOOSENING ON THE MARGINS, PEOPLE WHO NEED TO SELL. THAT’S WHAT THE BUYER’S JOB IS, FIND THE BUYER THAT NEEDS TO SELL. PROBABLY THE ONLY BID THEY’RE GOING TO HAVE, BID AGGRESSIVELY, BID ON MULTIPLE THINGS. AS TO AFFORDABILITY, I DO THINK MOST PEOPLE IN THESE MARKETS BECAUSE THERE’S SUCH RICH MARKETS, THEY DON’T NEED TO SELL AS MUCH AS OTHERS MAY NEED TO SELL. SO YOU REALLY HAVE TO PICK AND CHOOSE AND DO YOUR HOMEWORK. GO TO REALTOR.COM. READ ALL ABOUT WHAT MARKETS ARE LIKE. READ ABOUT THE DIFFERENT HOUSES ON THE MARKET. KNOW YOUR STUFF WHEN YOU GO IN THERE TO BID.>>.>.DAGEN: IF YOU COULD BUY SOMEWHERE ELSE, WHERE WOULD IT BE IN TERMS OF AFFORDABILITY, A LOT OF INVENTORY, YOU COULD GET A GOOD DEAL, IS THERE ANY MARKET IN THE UNITED STATES THAT FITS THAT BILL?>>I THINK MIAMI RIGHT NOW. DAGEN: BECAUSE OF SUPPLY. THERE’S A LOT OF SUPPLY COMING ON THE MARKET.>>A LOT OF SUPPLY.>>AND IT’S VERY INTERESTING. THEY TRY TO HIDE THE SUPPLY THERE. WE’RE MUCH MORE TRANSPARENT IN NEW YORK ABOUT WHAT OUR SUPPLY IS. THERE, EVERYTHING IS A LITTLE MURKY.>>ESPECIALLY IN THE NEW DEVELOPMENT DOWN THERE. THERE’S BUILDING AFTER BUILDING. CHERYL: MIAMI IS JUST EXPLODING.>>FREE MONEY, EVERYBODY BUILDS. SO THEY HAVE FREE MONEY. NOW WITHOUT SUCH FREE MONEY, SOMEBODY HAS TO ABSORB ALL THIS. DAGEN: DOLLY, JENNY LENS, IT’S GREAT TO SEE YOU BOTH. THANK YOU SO MUCH.

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