3 THINGS: NYC Real Estate Slowing? | Are You Open Minded? | Debt Good in Inflationary Environment [5/13/2022]

I write briefly about 3 thought provoking things I read, heard or saw in the past week. I always include links in case you want to indulge more. Hope these add value to your life in some way, as they did mine! 

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1. 
Is the NYC Real Estate Market Slowing? 
Last week I hosted my periodic Clubhouse chat with top real estate agents and experts. Here is a link to the entire hour chat if you are interested.  While things are still very strong, some top agents – 3 in particular – noted that they are seeing some signs of a  “slow down” especially for properties under $1M. Given the rapid rise in interest rates perhaps this is no surprise. One agent even mentioned that he had 3 buyers back out of deals recently.  Is this a harbinger of things to come? We shall see, but agents are usually the first to see it.  Note you can sign up to get these chats delivered to your inbox by clicking here. 

2.
Are You Listening for Justification or to Discover Something New? 
One of my favorite books of all time is “Awareness” by Anthony DeMello.  It is one of the few books I can read over and over again as I try to work on myself and be a better person.  A different passage always stays with me each time I read it. This time it is this: “…are you listening for what will confirm what you already think? Or are you listening in order to discover something new?”  In such a divided society, I would wager that most people do the former, unfortunately. I am sure I do that too, sometimes. I am always trying to do the latter 🙂


3. 
Own Debt is Good in an Inflationary Environment?
Owning debt may be a good thing in an inflationary environment.  Reading “Secrets of the Temple” by William Greider reminds me (page 43) that during the inflationary period of the 70s, many took on debt, especially home debt. When you get a loan, your interest payments are fixed. This means your expense is fixed in an environment where the prices of most things are rising.  This could be one of the reasons why even as interest rates rose dramatically during the 70s, people continued to take on debt and buy homes.  Higher interest rates may not have as negative affect on real estate sales as many think. 

Have a great weekend! 

Best,
Phil Horigan
Founder, Leasebreak (marketplace of shorter NYC leases)

–>You can learn more about how Leasebreak can help renters and agents agents by clicking here.  
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