How Does the Outcome of the Democratic Primary for Mayor Immediately Impact Real Estate?

The Weekly Recap

Good morning and happy Friday! The race for NYC mayor got a lot more interesting, the Fed could cut rates in July (or not depending on which person at the Fed you talk to), New York is getting a nuclear power plant as energy demand soars. Nepo-Buyers are a new class of homeowner and price growth has slowed across many markets for homes.

If you missed last weeks newsletter on A Momentum Shift in The Housing Market is Causing a Re-Balancing you can read that through the link.

How Does the Outcome of the Democratic Primary for Mayor Immediately Impact Real Estate?

Over the past few days I've fielded calls both from agents and clients alike about how the recent outcome of the democratic primary for Mayor will impact the real estate market in NYC. Most of my job is to mitigate risk and uncertainty, so I wanted to share with you some points that I have been communicating to clients and agents to reposition the doom and gloom response.

 - The results of the primary DOES NOT mean Zohran Mamdani is already mayor. Historically, the winner of this primary usually goes on to win the mayoralty but what makes this general election in November different is that the incumbent was a member of the same party until recently, so it will be a close race.

 -Even if Mamdani does win, NYC has survived bad 'anti-real estate' mayors in the past and NYC will continue to survive bad 'anti-real estate' mayors in the future.

 -Speaking of survival, the NYC market has survived 9/11, a housing crisis, COVID and a myriad of other events that have had negative downward pressures on the marketplace.

 -Remember, ROI is determined not by timing the market, but by time spent in the market.  

 Don't hesitate to reach out with any questions.

Market Performance

Here are how some other indexes and asset classes have performed as of this Mornings opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

The consistency of stable mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April. While recent data show that home sales nationally are flat, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.

News You Can Use

• Powell Says Higher Inflation Outlook Keeping Fed On Hold for Now Bloomberg

• Lutnick Said US-China Trade Truce Signed, 10 Deals Are Imminent Bloomberg

• Fed Governor Waller Says Central Bank Could Cut Rates As Soon As July CNBC

• New York to Build One of First US Nuclear-Power Plants In a Generation Wall Street Journal

• Mamdani Stuns in NYC Mayoral Primary Race Bloomberg

• Fed to No Longer Police Reputational Risk in Banks Reuters

• US Home Resales Stay Sluggish Bloomberg

• Home-Price Gains in US Slow Bloomberg

• Big US Banks Expected to Ace Stress Tests, Boost Dividends Reuters

• Nepo-Buyers Are America’s Newest Class of Homeowners NY Post

• NYC’s $4.4 Billion Casino Battle Now Lies With Gambling Skeptics Bloomberg

The Deep Insight

Contact Me

Feel free to reach out to discuss more in-depth about your real estate goals, share your thoughts about my newsletter, or to share what you're experiencing in this market. Looking forward to hearing from you!