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- NYC Council Passes ‘Broker Fee Bill’
NYC Council Passes ‘Broker Fee Bill’
Plus, Election Aftermath: 1 in 5 Plan to Move, and NAR Chief Economist Forecasts 9% Bump in Home Sales.
Ralph Ragetté Jr
November 15, 2024 • Reading Time: 9 minutes
NYC Council Passes ‘Broker Fee Bill’
The New York City Council has passed the Fairness in Apartment Rentals (FARE) Act, shifting the responsibility of paying broker fees from tenants to landlords. The legislation, approved by a 42-8 vote, aims to alleviate the financial burden on renters by prohibiting brokers from charging fees to tenants when representing landlords exclusively. The bill is set to take effect 180 days after passage, pending any veto from Mayor Eric Adams.
The Real Estate Board of New York, the New York Association of REALTORS®, and The Hudson Gateway Association of REALTORS® have strongly opposed the bill.
The FARE Act does not affect rental policy in Westchester County.
Ralph’s Take
Shifting broker fees to landlords may result in higher rents, as landlords could pass the costs into monthly payments. There are also concerns that the bill could reduce access to rental listings. Prior to the vote, Mayor Adams acknowledged the city was seeking a compromise. I believe brokers should collect fees transparently and allow open negotiation among all parties involved.
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Westchester Market Tracker 📈
This week’s stats:
Highest Sale: 9 Redfield Street in Rye closed for $2,407,000. 💰
Property Type: Single-Family. OneKey Multiple Listing Service, Inc. 11/8/24 - 11/15/24.
Election Aftermath: 1 in 5 Plan to Move
22% of U.S. residents are more likely to move now that the election is over, according to Redfin. Among these individuals, 36% are considering relocating to another country, while 26% are contemplating a move to a different state. Conversely, 21% of respondents indicated they are less likely to move post-election. Additionally, a survey conducted in October, found that nearly 25% of first-time homebuyers were waiting until after the election to resume or start their search.
Ralph’s Take
The survey, conducted last Thursday and Friday during a time of heightened emotions across the political spectrum, revealed that about 1 in 5 respondents considering a move said the election results increased their likelihood of buying a home. This aligns with historical trends, as the real estate market often experiences a " Bounce-Back Effect " following the conclusion of a presidential election.
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NAR Chief Economist Forecasts 9% Bump in Home Sales
At the National Association of Realtors® (NAR) NXT conference, Chief Economist Lawrence Yun projected a 9% increase in existing home sales for 2025, followed by a 13% rise in 2026. He also anticipates new home sales to grow by 11% in 2025 and 8% in 2026. Yun attributes these forecasts to expected stabilization of mortgage rates around 6%, ongoing job market growth, and an increase in housing inventory compared to the past five years. Additional points:
Household equity at a record high
Expect 6 to 8 interest rate cuts
Mortgage rates to stabilize between 5.5% and 6.5%
Ralph’s Take
While Yun’s forecasts are optimistic, I hold a little skepticism. At last year’s event, he projected a 13% increase in existing home sales for this year, anticipating declining inflation and mortgage rates hovering around 6% by spring. Instead, inflation surpassed expectations, pushing mortgage rates higher through March and April, peaking at 7.22% in May. While I’m naturally an optimist, and I remain hopeful for a more balanced market next year, I’ll be closely watching interest rates, inventory, and demand to see how they evolve.
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Visual of the Week 🖼️
Who Doesn’t Love a Stunning, Curved, Staircase?
This sweeping staircase is one of the elegant features of Skyline Haven in Rye Brook. This newly built, one-of-a-kind 4,950 sq. ft. residence is thoughtfully crafted with high-end finishes and meticulous attention to detail, providing a sanctuary of sophistication and comfort. Read more
The Real Estate Professional’s Secret Weapon - Land id™
Discover extensive nationwide private parcel & ownership data
Create & share powerful, interactive maps of any property
Mobile Apps: Find property data on the go
Mortgage Watch 📉
Today’s average 30-year fixed rate inches up from a week ago, now at 7.12%.
Three-year snapshot of today’s rate: 7.46% in 2023, 6.61% in 2022, and 3.23% in 2021.
> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.
This Week’s Westchester Events
Friday, November 15th
11/15 - 1/5: Holiday Food Truck Market
Saturday, November 16th - Sunday, November 17th:
11/16: Fun in the Fall Beer Fest
11/16 - 11/17: Holiday Market and Train Show
11/17: Fall Fest Weekend at Westchester Children’s Museum
Ongoing thru 12/8: Holiday Train Show
Final Weekend: The Blaze
11/18 - 1/7: The Great Holiday Train Show
Upcoming Farmer’s Markets:
Saturday: Bronxville, Chappaqua, Greenburgh, Hartsdale, Hastings-on-Hudson, Katonah, Larchmont, Ossining, Peekskill, Pleasantville, Sleepy Hollow / Tarrytown.
Sunday: Irvington, Mount Kisco, Rye, Somers, Tuckahoe
Happy Birthday to my cousin, Daniel! 🥳🥳
After five long years, he made it back to New York City from Austin, Texas. Here we are on Wednesday night at Club A Steakhouse, celebrating life!
With appreciation, Ralph 🫡
This market is not perfect. I'm here to help.
Schedule a consultation to develop your end-of-year or 2025 game plan.
Email, call, or text message me at (914) 202-1101.
