Celebrity real estate agent Ryan Serhant joins TheStreet to discuss the latest housing market trends.
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00:00 What's the biggest trend in housing right now? The biggest trend? Yeah. You know, cash. Cash is king.
00:07 It's amazing to me how many people have so much cash. You know, New York City specifically,
00:14 pre-COVID, you'd have 30 to 35 percent of purchasers just paying all cash, whether they
00:19 were doing a technical refi after closing or not. Today, it's still hovering at just under 70 percent
00:25 of all residential purchasers are done in all cash. I'd say that's still the biggest trend.
00:29 So what is the impact of that on the market, the fact that more people are paying with cash?
00:36 So one of the unique impacts, because I think our minds immediately go to, oh well, so if you're
00:44 rich and you have a lot of cash, the housing market is going to favor you, right, unfairly.
00:50 But what we're starting to see is younger buyers come into the fold and co-purchase. If you would
00:56 talk to me about people co-purchasing four years ago, three years ago, 10 years ago, I would have
01:02 said that that's a really, really hard thing to do. So what is co-purchasing? That's a new phrase.
01:07 So you'll see two people come together who are looking at rents and they're saying, okay,
01:13 rents are going up 3 to 10 percent a year. Inflation now looks, according to today,
01:18 like it might be cooling. I don't know. The Fed is saying they're going to cut rates maybe by the
01:23 end of the year. I think we have a first rate cut. It'll come sometime, let's say, let's say in
01:27 September. But regardless, let's go and buy something together. Home ownership is a pathway
01:34 to wealth, especially in the United States. It always has been. That's not going to change.
01:39 If we can get a great deal by pooling our cash together, instead of being roommates on a rental,
01:44 let's be roommates on a co-purchase and we buy together. And there's different legal structures
01:50 that you can do to make that palatable to everybody. But we're starting to see that
01:55 more and more. You're starting to see it even a little bit in New York City where you have condo
01:58 boards. There's a bit more regulation and process here as New York is becoming a great primary
02:03 residence for people who want to work from home, who never had the opportunity to live and work
02:08 in New York before, but their jobs are based in Michigan or in California or in some of these
02:13 places where they're saying, oh, you know what? I can go live in New York for the first time.
02:17 And also you're going to come with me. Great. Let's actually buy something instead of just renting.
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