MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 4/7/2025 – 4/14/2025

Did You Know?

* Zillow on their own site – as of 2021 – show they only are drawing in around 3% of all buyer and seller transactions? They say over 90% of buyers work with an agent. Their site also states “64 percent of all buyers consider new construction. Make it easy for them to find you – list where they’re looking.” But do builders/developers list all their listings publicly or are most listed privately and then listed publicly if they don’t sell?

* Eliminate the SALT deduction? Some are proposing this right now… State and local taxes aren’t optional. They’re a business cost, just like payroll, rent or electricity. If businesses can no longer deduct state and local taxes from their federal returns, it means they’re taxed on income they never actually made. Is that unfair or economic malpractice? A manufacturer or restaurant could have a tough year, post no profits and then be asked to pay federal taxes on money it already handed over to state and local governments. Eliminating C-SALT might make that business appear profitable, because it wasn’t allowed to deduct its property or sales taxes on its federal return making it liable to pay additional taxes to the federal government out of funds it doesn’t have. That’s unsustainable—and it certainly doesn’t encourage hiring, investment or expansion. (WSJ)

“This notion that the Federal Reserve is going to ease four times this year, I see zero chance of that. I’m much more worried that we could have elevated inflation that’s going to bring rates up much higher than they are today,”

– Larry Fink, Blackrock….buy now, lock in before it’s too late?

* Not only does real estate act as a form of forced savings, but it also offers tremendous leverage. You can buy a $1 million property with a $200,000 down payment if you put 20% down. If you have a good credit score and a low debt-to-income ratio, you might even get away with a 3% down payment. Very few investment opportunities allow you to put down $30,000 to gain ownership of $1 million worth of assets. You have to contend with mortgage payments for up to 30 years, but if you earn rental income from the property, you break even while building up equity.

* Bridgewater founder Ray Dalio is concerned that the global monetary system could break down.  New tariff policies and growing U.S. debt are contributing to a new unilateral world order, and the fallout from turmoil in bonds could be a more severe shock to the monetary system than the 2008 financial crisis. (CNBC)

Mortgage Rate Updates:

The average rate on a 30-year fixed mortgage backed by Freddie Mac fell to 6.62% on April 10th, declining for the fourth consecutive week. “The average 30-year fixed-rate mortgage continues to trend down, remaining under 7% for the twelfth consecutive week. As purchase applications continue to climb, the spring homebuying season is shaping up to look more favorable than last year,” said Sam Khater, Freddie Mac’s Chief Economist.

Source: Freddie Mac