BIM | Real Estate Asset & Property Management

BARNES & ReLuxury are pleased to invite you to their show, an unprecedented event dedicated to the second life and circularity in luxury real estate, luxury products, the art of living and hospitality. from Friday, November 15th, from 2:00 PM to 8:00 PM Saturday, November 16th, from 10:00 AM to 8:00 PM to Sunday, November 17th, from 10:00 AM to 5:00 PM at the Carrousel du Louvre 99 rue de Rivoli 75001 Paris Registration is mandatory before November 12th. Register here: https://lnkd.in/eQKQjdZw

We're thrilled to be part of the NYC Real Estate Expo! Looking forward to connecting, learning and exploring new opportunities in Real Estate.

Federal Reserve Cuts Interest Rates by 0.50% – A Bigger Cut Than Expected The moment the real estate industry and much of the nation has been anxiously awaiting has finally arrived. The Federal Reserve has announced a 0.50% interest rate cut – the first reduction since early 2020 and twice the size of the quarter-point cut that was initially expected. This decision marks the end of a challenging two-year period, during which the Fed raised rates to a 20-year high in an effort to curb inflation and cool down an economy where the costs of housing, food, and other essentials were spiraling upward. For investors, this larger-than-expected rate cut is excellent news. The Fed made this bold move as it shifted its focus toward the job market, aiming to avoid further job losses now that inflation appears to be under control. More Rate Cuts to Come? The Federal Reserve has also projected another half-point rate cut later this year, which would bring its policy rate down to 4.4%. By the end of 2025, they anticipate that rates will drop further, potentially reaching 3.4%. This news has already sent stocks soaring and is likely to trigger a buying frenzy in the real estate market. Homebuyers and investors now have a clearer sense of stability after two years of uncertainty. Even if they purchase properties at higher rates now, they know they will have the opportunity to refinance to a lower rate within the next 18 months. Relief for House Flippers and Rental Investors Politically, the Biden administration is likely to celebrate this move, presenting it as a victory over inflation and a positive development for borrowers, businesses, and consumers. For house flippers and buy-and-hold rental investors, this means less stress when borrowing at high rates during renovations and improved cash flow when purchasing rental properties. However, the news of future rate cuts, along with the anticipated increase in buying activity, could also push property prices higher. For owners struggling with high mortgage rates, this cut offers the chance to refinance, improve cash flow, or reduce monthly expenses. Homeowners who have been hesitant to sell due to fear of losing their low interest rates may now feel encouraged to list their homes, adding much-needed inventory and activity to a stagnant market. The Fed Still Has a 2% Inflation Target This decision reflects our growing confidence that, with appropriate recalibration of our policy stance, the strength of the labor market can be maintained in a context of moderate growth and inflation sustainably moving down to 2%,” said Federal Reserve Chairman Jerome Powell. Powell also noted that the labor market has “cooled from its formerly overheated state,” and that inflation has “eased substantially.” This marks a significant shift from previous press conferences, where Powell’s primary concerns were rising prices.

Increase in Home Listings Across Several Cities: The U.S. housing market is experiencing an interesting shift. While the number of homes for sale remains historically low, it's rising quickly in certain areas. In August, active home listings increased by 36% compared to last year, according to Realtor.com. However, this is still 26% below the pre-pandemic levels of August 2019. One key reason for this increase is that homes are staying on the market longer. With more inventory available, sellers are becoming cautious, and new listings dropped by 1% in August compared to the previous year. In some cities, the rise in listings is particularly strong. In Tampa, Florida, listings have surged by more than 90%, while San Diego saw an 80% increase, and Miami, 72%. Seattle and Denver also saw significant growth, with listings up by 69% and 67% respectively. This increase in supply is having a direct impact on the market: homes are taking longer to sell, and prices are starting to drop. In August, 19% of homes for sale saw price cuts, up from 16% the previous year. The median home price dropped by 1.3% year over year, though prices remain 36% higher than they were pre-pandemic in 2019. In summary, with the growing number of homes for sale, the market is beginning to adjust: prices are stabilizing, and homes are taking longer to sell.

Focus Intensifies on the Federal Reserve Ahead of September Meeting As September arrives, attention turns to the Federal Reserve, with expectations mounting for a reduction in the Federal Funds Rate. This anticipated cut, driven by cooling inflation and a slowing job market, could significantly impact the housing sector. Mark Zandi, Chief Economist at Moody’s Analytics, notes, “They’re ready to cut, just as long as we don’t get an inflation surprise, which we won’t.” Why a Rate Cut Matters The Federal Funds Rate plays a crucial role in determining mortgage rates, alongside broader economic factors. A reduction by the Fed typically signals economic trends, potentially leading to lower mortgage rates. Although a single cut may not cause a sharp decline, it could contribute to the gradual decrease already observed. Mike Fratantoni, Chief Economist at the Mortgage Bankers Association, predicts, “Once the Fed kicks off a rate-cutting cycle, we expect mortgage rates to move somewhat lower.” Lawrence Yun, Chief Economist at the National Association of Realtors, adds, “Six to eight rounds of rate cuts through 2025 look likely.” Potential Impact on the Housing Market Alleviating the Lock-In Effect: Lower mortgage rates could ease the “lock-in effect” for homeowners hesitant to sell due to higher current rates. Boosting Buyer Activity: For buyers, reduced mortgage rates may make homeownership more attainable, encouraging market entry. Strategic Considerations While a rate cut might not drastically lower mortgage rates, it will likely support the ongoing downward trend. As Jacob Channel, Senior Economist at LendingTree, advises, “Timing the market is impossible. Buy now only if it’s right for you.” The expected rate cut from the Fed, driven by improving inflation and a slowing job market, is likely to positively influence mortgage rates, presenting opportunities for both buyers and sellers.

𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲: 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗶𝗻 𝗨.𝗦. 𝗛𝗼𝗺𝗲𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 Over the past decade, homebuilders like D.R. Horton and Lennar have outpaced the S&P 500 in returns. Despite recent downgrades in their investment outlook, some investors remain hopeful about the industry's prospects. 𝗣𝗼𝘀𝘁-𝟮𝟬𝟬𝟴 𝗚𝗿𝗼𝘄𝘁𝗵 𝗮𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 Homebuilders have strengthened their positions since the 2007-2008 crisis. Luis Quintero from Johns Hopkins University notes that stimulus packages in the early 2010s gave these companies a liquidity boost, allowing them to solidify their market presence. However, this consolidation may have contributed to the ongoing U.S. housing shortage by reducing competition. 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗨.𝗦. 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗦𝗵𝗼𝗿𝘁𝗮𝗴𝗲 The U.S. faces a significant housing shortage, with estimates ranging from 2 million to 8 million units. Tobias Peter of the American Enterprise Institute emphasizes the need for rapid construction to curb rising prices. Slow permit processes, especially in regions with restrictive zoning laws like California, further complicate the issue. 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗥𝗮𝘁𝗲𝘀, 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻, 𝗮𝗻𝗱 𝘁𝗵𝗲 𝟮𝟬𝟮𝟰 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻 High mortgage rates and inflation have reduced new residential projects since 2021. The 2024 election could reshape the future of homebuilding, with Vice President Kamala Harris advocating for zoning reform and subsidies for 3 million new homes. In contrast, former President Donald Trump criticizes these policies, linking them to inflation and housing challenges. 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗙𝗼𝗿𝘄𝗮𝗿𝗱 The homebuilding industry is at a pivotal point. The choices made in the near future will affect housing affordability and the broader real estate market. Staying informed and flexible will be essential for navigating these changes.

𝗛𝗼𝗺𝗲 𝗥𝗲𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗦𝗼𝗮𝗿𝘀 𝟯𝟱% 𝗶𝗻 𝗮 𝗪𝗲𝗲𝗸 𝗮𝘀 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀 𝗥𝗲𝗮𝗰𝗵 𝗡𝗲𝘄 𝗬𝗲𝗮𝗿𝗹𝘆 𝗟𝗼𝘄 Mortgage refinancing applications surged by an impressive 35% last week compared to the previous week, according to the seasonally adjusted index from the Mortgage Bankers Association (MBA). Even more striking, this represents a 118% increase compared to the same period last year. It seems it took a few weeks for current homeowners to realize that mortgage rates had dropped significantly. But once they did, they acted swiftly. While the average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) fell only slightly from 6.55% to 6.54%, this small drop was enough to trigger a rush in refinancing. In fact, rates have decreased by 33 basis points over the past four weeks and are 62 basis points lower than they were at this time last year. According to Joel Kan, an economist at MBA, "The refinance index saw its strongest week since May 2022, driven by gains in conventional, FHA, and VA applications." In contrast, applications for mortgages to purchase a home only rose by 3% for the week, and they remain 8% lower than they were during the same week last year. Today’s homebuyers face more than just high interest rates. They are also contending with high home prices and limited inventory. Additionally, some buyers, according to agents, believe that mortgage rates might drop even further, prompting them to wait before making such a significant purchase. The share of refinancing in total mortgage activity increased to 48.6%, up from 41.7% the previous week. A year ago, refinancing accounted for just 29% of total applications. Mortgage rates started this week relatively flat, but that could change with the release of the government’s monthly inflation report, the Consumer Price Index (CPI). “There’s no way to know ahead of time whether the data will be friendly or damaging—only that CPI is responsible for some of the biggest spikes and drops over the past few years,” wrote Matthew Graham, Chief Operating Officer at Mortgage News Daily. For homeowners, this drop in interest rates could represent the perfect opportunity to refinance your mortgage under more favorable terms. If you’re considering lowering your monthly payments or shortening the term of your loan, now might be the ideal time to explore your refinancing options. Thinking about refinancing your mortgage or making a new purchase? Contact us today to discuss your options and see how we can help you optimize your real estate investments.

𝗔 𝗡𝗲𝘄 𝗘𝗿𝗮 𝗶𝗻 𝗙𝗹𝗼𝗿𝗶𝗱𝗮 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲: 𝗚𝗮𝗺𝗲-𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗥𝘂𝗹𝗲𝘀 𝗳𝗼𝗿 𝗔𝗴𝗲𝗻𝘁 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝘀 Starting August 17th, the business of buying and selling homes in Florida will experience a major shift as new regulations concerning real estate agent commissions come into effect. These changes are the result of a series of antitrust lawsuits against the National Association of Realtors (NAR), which has been accused of enforcing practices that inflated home-selling costs. The NAR is also facing a $418 million settlement. 𝗞𝗲𝘆 𝗖𝗵𝗮𝗻𝗴𝗲𝘀: Traditionally, sellers have used proceeds from the home sale to cover the commission fees, which are typically split between their agent and the buyer's agent, usually ranging between 5-6%. However, this long-standing practice may soon be a thing of the past. Under the new rules, listing agents will no longer be allowed to advertise commissions when posting homes on Multiple Listing Services (MLS). Additionally, buyers will be required to sign a written agreement with their agent, specifying how much the agent will be paid. This could lead to a shift where buyers become more accustomed to paying their agents directly. 𝗪𝗵𝗮𝘁 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗠𝗲𝗮𝗻 𝗳𝗼𝗿 𝗕𝘂𝘆𝗲𝗿𝘀 𝗮𝗻𝗱 𝗦𝗲𝗹𝗹𝗲𝗿𝘀? For some, little will change. Sellers can still offer to cover the full commission, just as they have done in the past. However, others might choose to have each party pay their own agent, introducing a new level of negotiation into the process. This flexibility could result in sellers retaining more cash at closing, while buyers might face a new expense. Buyers may become more selective, shopping around for agents who offer lower commission rates or flat fees, and some might even consider going without an agent altogether. 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆'𝘀 𝗙𝘂𝘁𝘂𝗿𝗲: The U.S. is known for having some of the highest real estate commissions globally. These new rules could bring us closer in line with international standards if more buyers and sellers begin negotiating down from the traditional 6% fee. Since the settlement announcement in March, a slight decline in average buyer’s agent commissions has already been observed. However, these changes could lead to a significant reduction in the number of practicing agents, with some experts predicting that as many as one million agents might exit the industry. Agents will need to sharpen their negotiation skills to thrive in this new landscape. As MaryDell Penney from Redfin pointed out, those who entered the profession during the booming COVID-19 years will now need to adapt and work harder to succeed. These changes mark a revolutionary shift in the Florida real estate market. As we enter this new era, it will be crucial for industry professionals to adapt and develop innovative strategies to remain competitive.

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗡𝗬𝗖’𝘀 𝗜𝗻𝘁𝗲𝗻𝘀𝗲 𝗥𝗲𝗻𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁: 𝗔 𝗧𝗲𝘀𝘁 𝗼𝗳 𝗣𝗮𝘁𝗶𝗲𝗻𝗰𝗲 𝗮𝗻𝗱 𝗣𝗲𝗿𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝗲 Finding an apartment in New York City has always been a challenge, but the current market has reached new levels of intensity. Renters are facing skyrocketing prices and fierce competition, making the process more daunting than ever before. 𝟭. 𝗦𝗸𝘆𝗿𝗼𝗰𝗸𝗲𝘁𝗶𝗻𝗴 𝗥𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗙𝗶𝗲𝗿𝗰𝗲 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 In today’s market, securing an apartment often means engaging in bidding wars, with many renters offering well above the asking price just to stay in the game. Landlords and real estate agents are leveraging this high demand to their advantage, setting the stage for a high-stakes competition where only the most financially prepared are likely to succeed. It’s a stark reminder of the pressures that come with living in one of the world’s most sought-after cities. 𝟮. 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝗮𝗯𝗹𝗲 𝗧𝗮𝗰𝘁𝗶𝗰𝘀 𝗶𝗻 𝗮 𝗛𝗲𝗮𝘁𝗲𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 The competitive environment has also led to some questionable practices. Real estate agents are reportedly underpricing apartments to draw in large numbers of potential renters, only to drive up the final price through bidding wars. With an influx of recent graduates and homeownership feeling out of reach due to high mortgage rates, the rental market has become more cutthroat than ever. This has resulted in a frenzied atmosphere where securing a home feels more like a race than a routine transaction. 𝟯. 𝗧𝗵𝗲 𝗘𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗧𝗼𝗹𝗹 𝗼𝗻 𝗥𝗲𝗻𝘁𝗲𝗿𝘀 Beyond the financial challenges, the emotional toll on renters is significant. The pressure to secure housing is leading some to go to great lengths to stand out, from providing detailed personal references to sharing their academic records. For many, the stress of the search is becoming overwhelming, leading some to reconsider their future in the city. The process has evolved into a true test of resilience, where adaptability and persistence are just as important as financial stability. 𝗖𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 Navigating New York City’s rental market today requires more than just a budget – it demands patience, persistence, and a strategic approach. For those in the midst of this search, it’s important to stay informed, be prepared to act quickly, and above all, keep perspective. While the challenges are real, so are the opportunities, and with the right mindset, it’s still possible to find a place to call home in this vibrant city.

𝗙𝗹𝗼𝗿𝗶𝗱𝗮 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 𝗳𝗼𝗿 𝗟𝗮𝘁𝗲 𝟮𝟬𝟮𝟰: 𝗞𝗲𝘆 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 As we move into the latter half of 2024, Florida's real estate market is experiencing a healthy rebalancing. Here's a concise overview of the key trends: 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝗯𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴: The Florida real estate market is stabilizing after a period of rapid growth. Higher interest rates and rising home insurance costs are contributing to a more balanced market, with homes spending more time on the market. 𝗛𝗼𝗺𝗲 𝗣𝗿𝗶𝗰𝗲𝘀 𝗮𝗻𝗱 𝗔𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗶𝗹𝗶𝘁𝘆: As of June 2024, the median price of a single-family home in Florida reached $427K, marking a 2% year-over-year increase. However, with mortgage rates lingering around 7% and the cost of living rising, affordability is becoming a challenge for many buyers. 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗟𝗲𝘃𝗲𝗹𝘀: Florida's housing inventory has increased slightly to a 4.6-month supply, still below the 6-month supply considered normal. Despite this, well-priced homes in desirable neighborhoods continue to sell quickly, although the pace of multiple-offer situations has slowed. 𝗡𝗲𝘄 𝗖𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻: The demand for new homes has cooled due to higher interest rates, leading some builders to offer incentives like lower rates through in-house lenders. Construction delays are also common, with build times extending to 9-12 months. 𝗥𝗲𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗧𝗿𝗲𝗻𝗱𝘀: Many are still moving to Florida, driven by the desire for warmer weather and retirement plans. Those not wanting to wait for new construction are turning to the resale market, often paying full asking price to secure a home. For those considering a move to Florida, it's essential to stay informed about the latest market trends and consult with local real estate experts to navigate this dynamic landscape effectively