That if you look at this kind of movement in
mortgages, what is the ultimate impact you're seeing among
buying trends that are most significant that maybe most people
don't see. Yeah, I mean, I think
the rates going up so much has created this sort
of potential buyers are sitting out and opting to rent
. And I think also potential sellers are deciding not
to sell because they don't want to refinance at these
higher rates. But what you're seeing is a tri
facto, you're seeing rates that are up, you're
seeing inventory constrained in most of the country, not
in New York City, but a lot of parts
of the country. And you're also seeing prices are
still elevated so that trifecta is creating a sort of
sluggish housing market. Let's talk about New York City
for a second because just before you got here,
New York City had been announcing a new plan to
roll out as many as 20,000 new housing units and
really rezoning mid town from office buildings to a more
residential place. How might this impact the market in
the city? I mean, it would be a
great thing. I know the mayor's office submitted this
plan to do this whole rezoning so that we can
do that. And we have a migrant crisis as
we know. So we could definitely use more housing
in the city would be a great thing to do
. How are you thinking about pricing, not just
in New York City, but over in the Hamptons
? Because you look at this trend of people willing
to pay pretty extraordinary prices when it comes to the
luxury market. That's right. That's discretionary. So
, discretionary is very different than the everyday buyer because
they have a lot of money at their fingertips.
They can spend a lot, they don't care so
much about rates because a lot of times they are
cash, cash is king, but rates have doubled
. So a lot of people are holding back.
But in the luxury market in the Hamptons, Palm
Beach in Florida, for example, there's no inventory
prices are high. Um, and there's not a
lot to buy there and people are, you know
, if they have a lot of money, they're
willing to pay a little bit more. But the
everyday buyer is sitting it out for the most part
that the scarcity value here is making more people jump
into the market knowing that they're not gonna get a
, get a place if they don't jump down anyway
. Well, I think people are trying right now
. It's mixed messages. Right. So we heard
recession, recession, recession and now what they're saying
the fed is saying, ok, our economists are
saying there won't be a recession, right? And
inflation has come down, which is good. But
I think it's a flawed assumption to think that because
inflation has come down, rates are going to come
down. I think rates will stay where they are
and they probably might take up a little bit.
So I think we have to get used to this
new six and 7% for the third year.