2021 NYC Market Recap, 2022 NYC Market Predictions and Tips on Tipping

The most wonderful time of the year is here! Best wishes to you and yours. May this holiday season be full of peace, love and prosperity. Thank you for making this year so great!

Grap a hot cup of cocoa and take a look at our 2021 NYC Market Recap, followed by market predictions for the upcoming year. And don't forget - tis the season for giving! Check out our Tips on Tipping!

2021 NYC MARKET RECAP

There’s no doubt about it that 2021 has been a barnstormer of a year for New York City real estate. Even the most optimistic among us couldn’t have predicted the bewildering turn of events that the city underwent following the pandemic. Here’s a recap:

A Life of Luxury:
Luxury went big in 2021 with homes priced $4M and above setting new records for six out of the top ten months since numbers began to be tracked in 2008 according to a recent report by real estate data analytics company UrbanDigs. 

Unrenovated units were unpopular: 
There was a time when a fixer-upper held a certain lure for flippers. Not so much in 2021. The deluge of brand new inventory coupled with the cost of materials, labor and supply chains, meant that buyers preferred to allow equity to sweat it out on the sidelines as they chose finished over unfinished, according to the report.

The stock market may have fueled the real estate explosion: 
Since 2008, the S&P 500 Index gained more than 200%, compared to a Manhattan condo which appreciated around 25% during the same time. At the end of October 2021, the S&P 500 finished the month at an all-time high, surging 6.9% for its biggest monthly gain of 2021. It may not have been a coincidence that November was a record-breaking month for real estate with 1300 contracts signed, despite the Thanksgiving holiday. Parking a windfall of cash in real estate is the oldest trick in the book.

2021 NYC MARKET PREDICTIONS

While everyone in real estate would love to talk a good game and suggest 2022 could follow in the footsteps of 2021, myself included, it’s worth mentioning a few storm clouds on the horizon:

Interest rates are going up: 
The Fed has indicated that to curb inflation they plan to raise interest rates in 2022 which could impact the prices of new condos and resale prices as buyers find it tougher to qualify for mortgages.

The market could tighten:
As lower-priced condos get snapped up by out-of-town investors or millennials looking to trade up from renting to owning, the market could tighten. The masses of inventory left in the market are shrinking and it might be a stretch to imagine 2021's rip-roaring months of record sales will follow in 2022. Factor in, too, the supply chain issues escalating the cost of construction and condo developments slowing down, the lack of inventory could see fewer deals at higher numbers.

ON THE POSITIVE SIDE

Foreign buyers could spur on new momentum: 
If we ever get a grip on Covid and travel, the pent-up demand for real estate by foreign buyers could see a new wave of momentum sweep across the luxury and condo markets.

Resumption of “Normal” activities in NYC should benefit real estate: 
If theaters, museums, and schools remain open, the NYC market could normalize as families move back into town and look for places to live. Look for spaces with outdoor facilities such as balconies, terraces, and roof gardens to stay in high demand.

Keep an eye on the Upper East Side: 
The Upper East Side has become one of the most family-friendly destinations in the city due to the number of private schools in the area. Throw in the restaurants, movie theaters, and accessibility from the 2nd Avenue subway, and the fact that leaving town doesn’t entail fighting Midtown traffic, and condo sales could continue to grow.

Live In A Luxury Condo? You’ll Need These Tips On Tipping.

Chestnuts roasting on an open fire, 

Jack Frost nipping at your nose, 

If you call a condo in the sky your home, 

You’ll need to tip the staff below!

Yes, holiday time means tipping time. The staffers in the double-breasted brassy buttoned overcoats who so courteously open doors, store packages, watch your toddler as you dash back up to your condo, or help you with bulky furniture, most likely earn around $50K a year. Tipping makes a big difference to their bottom line. However, knowing how much to tip and who gets what can be more difficult than trying to wheel a bike in through a revolving door in a gale-force wind.  

Here’s a breakdown of tipping protocols in the New York City

Resident Manager/Super & Handyman: 
If you’re just scraping by managing to pay your mortgage and utilities, save money for these guys’ tips like you would save for a vacation because they don’t come cheap. Condo owners should look to tip around $1000 for these two lifesavers, with the Resident Manager/Super getting slightly more due to their seniority.

Doormen:
Prepare to pay your building’s gatekeepers $125-$450 a piece. That includes the overnight and weekend staffers. You can squeeze in an extra $100 for your favorites.

Maintenance Staff & Porters
These guys keep the engine running. Whether it’s fixing faulty hot water tanks, disposing of the trash, or bringing up your Amazon packages. A $100-$300 tip is an average amount to show your appreciation.

Garage: 
No need to tip the same for miscellaneous garage staff you never interact with as those you do. Leaving $25-$75 for each of the staffers is fine but adjust upwards to the guys who take and bring your car to you every weekend.

The Do's and Dont's of Tipping

How To Present Your Tip
Discretion is generally the rule of thumb. No need to announce it in the lobby. For staff you have a personal relationship with, you might want to hand them a card containing cash in person. Also, no need to write a novel. A simple, “Thanks so much for your help this year,” or “We appreciate everything you do for us,” is fine. Also, don’t assume the staff celebrates the holidays in the same way you do, or at all, so leave out cards with religious sentiments in favor of ones that just celebrate the season. 

What To Give & Not To Give:
Basic rule of thumb — cash is king. Don’t write a check or give fancy foods, clothing, or even gift cards instead of the almighty dollar. Staffers have families to feed, bills to pay, and presents to buy too. Even though you might discuss music or golf with them, it doesn’t mean they want an Apple Music gift card or a golfing polo shirt. 

There’s never a dull moment when it comes to New York City real estate. The last year has been a roller coaster, to say the least. With the buzz and energy of New York firmly back after 2020, I’m as fascinated as you to see how 2022 unfolds. Whatever the case, be sure to buckle up. If it’s anything like the last 12 months, it’s going to be wild!