With all the real estate news this spring, it has been anyone’s guess what the summer would bring. Of course, that didn’t stop anyone from guessing. But so far, it looks like they’re getting it wrong on some key points in the Catskills.
The fallout from the NAR lawsuit settlement is definitely being felt. But the sudden influx of buyers seems to indicate there’s a silver lining to the cloud that has been hanging over the industry.
Here’s what I’m seeing:
The usual spring rush of new buyers is much stronger than usual in the Catskills, at least for my company. Are they trying to beat the July deadline when they’ll be have to sign buyer agreements and likely foot the bill for their buyers’ agents? Maybe. Or maybe it’s just pent up demand. 2023 was a solid year, but nothing like the two years prior. It may be the pendulum swinging again.
Sellers who have been thinking about selling for awhile are making the decision to do it. That’s going to mean more houses on the market, and that’s good news for buyers, because inventory has been low.
Interest rates don’t seem to be a factor. Yes, they’ve creeped up a bit. But the buyers are coming anyway.
Bargain hunters are back in force. Cheap project properties are being swarmed. Anything less than $100K that has the potential to be worth a lot more, even if it’s been on the market for a long time, is getting a lot of interest. Some of the buyers are looking to flip. Others are looking for a “someday” home. Others want to create a vacation home. But they’re out there and there are a lot of them.
There is definitely a change in sellers’ attitudes toward real estate commissions. I’ve spoken with several over the past couple of weeks, and not one was content with the old 6% model that offered to split that amount evenly between listing and buyers’ agents.
Instead, we’re discussing options, and what they may mean to how their property is perceived.
Properties that would appeal to first time homebuyers would likely scare away buyers if those buyers also have to add the cost of a real estate professional to their budget. But luxury and investment properties will be appealing to buyers with deep enough pockets to pay their own agent, and those sellers, in particular, are interested in reducing the amount of commission they pay. And the properties that fall in between those two are figuring out lots of different answers.
It’s all experimentation, and no one knows how it will actually play out.
But predictions that home prices would drop don’t appear to be correct. Prices are strong in the Catskills and there’s no indication that that will change this year.
It is an interesting time to be in this profession. But, surprisingly, it looks like it’s going to be a very, very good year in upstate New York.