MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 1/13/2025 – 1/20/2025
Let’s see what the market’s doing this week in the Riverdale area of the Bronx.
Did You Know?
* Did you notice? Today we have about 31 minutes more daylight than we had on December 21st, just a month ago…..a month from now we’ll have 69 more minutes of light…..think SPRING!
* A January WalletHub report compared the 50 U.S. states to determine which one is the best place to raise a family evaluated across five key dimensions:Family Fun
Healthy and Safety
Education and Child Care
Affordability
Socio-economics….and the top five were: Massachusetts (third year in a row!) followed by Minnesota, North Dakota, Nebraska, New Hampshire, New York, Illinois, Wisconsin, Maine and Connecticut. (CNBC)
* Between 2019 and 2024 in the luxury goods sector price increases accounted for more than 80% of growth, while volume gains were more moderate. This applies to many real estate markets too…..when the VOLUME market returns – combined with elevated prices – brace yourself!
* Price increases in the luxury goods sector have reached a ceiling, and higher prices are negatively affecting demand from aspirational luxury consumers. Macroeconomic headwinds have arrived especially in the key China market, which drove more than 18% of growth annually from 2019 to 2023. (McKinsey)
“You need to be a bit headstrong if you
want to be an entrepreneur. You also need
a bit of self-confidence.”
– Ho Kwon Ping, CEO Banyan Resorts
* The luxury sector’s rapid expansion over the past 5 years has led to overexposure and has weakened the industry’s promise of exclusivity, creativity, and craftsmanship. Brands increased prices, though some failed to sufficiently adapt their creative strategies and supply chains to meet new scale requirements, thereby weakening their core value proposition and ultimately failing to keep their promise to clients. Even the brands that have evolved over the past several years are subject to increased pressure, as consumers are questioning the luxury promise—one of uncompromising product quality and personalized, white glove experiences—and demanding more innovation. (McKinsey)
Mortgage Rate Updates:
The average rate on a 30-year fixed mortgage backed by Freddie Mac rose to 7.04% as of January 16th, marking the fifth consecutive week of increases and reaching the highest level since early May 2024. This uptick mirrors the rise in long-dated Treasury yields, driven by inflation concerns linked to potential tariff hikes under the incoming Trump administration, leading to a more cautious Federal Reserve. “Mortgage rates ticked up for the fifth consecutive week and crossed seven percent for the first time since May of 2024. The underlying strength of the economy is contributing to this increase in rates. Despite rising rates, Freddie Mac research highlights that consumers can save money if they shop for several different lender quotes,” said Sam Khater, Freddie Mac’s Chief Economist.
Source: Freddie Mac
