Housing Trends Shift in Favor of Buyers

February 07, 2023

Rise and shine! It's a new day and The Shaker is here to serve you the best mix of residential real estate news. Yummy yummy.

What you should know:

The US housing market showed increased bargaining power for homebuyers in January with lower mortgage rates, increased inventory, and slowing growth in asking prices, according to the Realtor.com Monthly Housing Trends Report.
Although the market remains sluggish with slowed sales, rising inventories, and leveled off prices, buyers are being deterred by high home prices and financing costs.
According to the Realtor.com Q4 Cross-Market Demand Report, markets in the Midwest and Northeast that offer more affordability have gained popularity among homebuyers. Pittsburgh, Buffalo, NY, Syracuse, NY, Albany, NY, and Cleveland, OH are popular.
The number of active listings in January continued to grow, but pending listings and newly-listed homes declined. Among the 50 largest U.S. metros, 49 markets posted yearly active inventory gains in January, led by Nashville, TN, Austin, TX, and Raleigh, NC.
The U.S. median listing price remained unchanged from December and growth in the typical asking price remained slow, potentially continuing into 2023. Homes spent more time on the market compared to last year but still selling more quickly than pre-pandemic times in all regions except the West.

Meet The Office Conversion King: Nathan Berman

Nathan Berman is a real estate developer who specializes in converting former office buildings into luxury apartments.
His company, Metro Loft Developers, has converted over 3.5 million square feet of office space in Lower Manhattan into residential units.
The firm has announced over $1 billion in deals with industry leaders such as Silverstein Properties, MSD Capital, GFP Real Estate, and Apollo Global Management.
The firm is partnering with Silverstein Properties to raise $1.5 billion in equity for SilverLoft, which aims to convert over 200 properties into residential units over the next decade.
New York Mayor Eric Adams is proposing zoning changes and tax incentives to encourage more office-to-home conversions in the city.
However, some real estate analysts are skeptical of the trend, as modern office buildings may have complicated layouts that make conversions more difficult.

During early 2020, the US housing market was gaining strength due to low unemployment and a 30-year mortgage rate ranging from 3.6% to 3.7%, making the median-priced home more affordable than renting.
However, by the end of 2022, the difference between owning and renting flipped as the share of monthly per-capita incomes paid by homeowners for mortgage payments jumped to 37%.
The most affordable housing markets are likely to gain popularity in the future as mortgage rates and home prices continue to rise sharply.
The most undervalued markets to purchase a home are predominantly located in the Midwest and near the East Coast, led by Detroit, Cleveland, St. Louis, and Philadelphia.
The most undervalued markets to rent a home are located in the Midwest, led by Omaha, St. Louis, Cleveland, and Kansas City.

A group of San Francisco transplants and tech-adjacent friends living in Brooklyn have created a "project" called "The Neighborhood NYC".
The goal of the project is to bring together high-agency, emotionally intelligent New Yorkers and create a community that combines aspects of college campus, Burning Man, Silicon Valley, and New York City culture.
The Neighborhood NYC currently has 23 people living in it, with the ultimate goal of attracting 100 friends within a year and eventually 1000 people living within one square mile.
The Neighborhood NYC was created by Priya Rose and her husband Andrew Rose, who started by familiarizing their friends with the area, hosting dinner parties, offering sublets, and sending rental listings.
The Neighborhood NYC has been documenting its progress and experiences on Substack, with residents writing about their experiences of living in the community.

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