The most fundamental fiduciary duties owed by an agent are to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal, the Black homebuyer — and also the Veteran homebuyer, the Latino homebuyer, the Asian homebuyer, the Gay homebuyer, every homebuyer — using all our capabilities to the exclusion of all other interests, including the broker’s own self-interest. “Equal service should be the norm in our industry, but it isn’t. Industry-wide studies in 2018 and 2019 show that White people get much better real estate service than Black people with the same finances. That difference perpetuates segregated neighborhoods.” Redfin’s CEO Glenn Kelman wrote this week, Our Role in Fighting Racism.
2. IS NYC REAL ESTATE IN TROUBLE?
The New York City real estate market historically experiences radical changes. Before the Coronavirus NYC, real estate was on a high. I recently listened to an interview with one of the top Realtors in the City and he reported the market was down 85% in May (year over year). CNBC reports of problems in the rental market as well: Manhattan’s empty apartments: New leases plunge 62% in May. “Manhattan had its worst May in a decade for new rental leases, falling 62%, according to a new report from Miller Samuel and Douglas Elliman. May also saw the largest year-over-year increase in new listings in nearly four years, with the number apartments listed for rent in Manhattan jumping 34%, to 7,420. The rising inventory suggests prices could be under pressure when the real estate industry reopens, likely in late June or early July.”
3. THE MILLENNIAL MOVE
The NAR (National Association of Realtors®) Identifies Top 10 Housing Markets for Millennials During the Pandemic. All have favorable conditions for millennial homebuyers during the coronavirus pandemic. They “identified the top 10 metro areas for millennial homebuyers by analyzing current housing affordability, local job market conditions during the coronavirus pandemic, the share of millennials in the area, and inventory availability in the largest 100 metropolitan statistical areas across the country.” Do you have any guesses about what cities make up the top 10?
4. CLEANOUT AND BOARD UP 2020
“It started with negativity but quickly became quite the opposite. Whitney Hampton, a broker with A Progeny Global LLC, felt the need to do something to counteract the narrative generated by destructive looting on the South Side of Chicago in the wake of global outrage after the police killing of George Floyd in Minneapolis.” The Chicago Agent reports how Realtor Whitney Hampton is Turning negativity into action: How real estate pros are helping rebuild the South Side. Often times the real estate community focuses on the transactional nature of the work, but Whitney gives us an example of how to find purpose.
5. LIFE IN THE BURBS
“Massive global corporations across the country are either going completely or partially remote. The list starts with Twitter, which decided to go 100% remote. Other companies, like Mondelez, Nationwide, Facebook and Barclays, are also considering a permanent shift to work from home.” From Forbes: How Working From Home Is Changing The Way We Think About Where We Live. Recent surveys suggest folks are happily embracing the work-from-home trend, but it may take more time to reveal some of the potential downsides.