IDENTIFYING AN INFLECTION POINT: THE MANHATTAN MARKET WITH ERIC BROWN
We sat down (virtually) with Eric Brown, top manhattan broker and leader of the EB Team, to discuss the state of the luxury market, his predictions for this coming year, and how he rose in the space over the last decade.
Eric Brown, Founder of the EB Team at Compass
What do you think differentiates you as an agent?
Right out of college I committed to real estate 100%. It was never a fallback job, 2nd career or hobby. My full attention, energy and focus has been brokerage and real estate since I started my career. This is not often the case for most brokers.
My approach is focused on the long-term relationship, it’s not about 1 sale or rental. Finding a home could take 6 days, 6 weeks, or 6 years, it’s about finding the right property not rushing a deal.
Nurturing a long relationship allows me to treat people less like a client and more like a friend, I just happen to be the friend who helps with real estate.
How has this past year compared to previous years in your career?
When the pandemic hit, it stirred the market bringing on some unique inventory. We also saw homes on the market at much higher prices come down to realistic pricing.
While most people were inclined to run away from the fire - leaving New York for Texas, Miami, California etc. - my clients and I had a different approach. Facing opportunity head on, we transacted on an incredible amount of real estate at significantly discounted levels. As we all look back over the long-term, I argue the early Covid months will have been the best time to purchase in NYC within the past decade.
What differentiates your market from other luxury markets?
No matter the person or business there's some connection to New York. Everyone has a reason, at some point, to be in New York and experience this one of a kind city.
Most of my clients could live anywhere in the world and they choose to live here, it’s for a good reason. It feels like we’re in the capital of the world.
What skill or element of your business have you found to be the most beneficial to your success?
I give my clients the same advice I would give my mom, or my dad, or myself. I’m the opposite of pushy or forceful. I'm patient, even if the right decision is “Hey, we should probably rent something for two years instead of buying.” I’m committed to providing the expertise my clients need to hear to make the best decision at that time for their families.
What’s the best advice you can give to a client who is trying to make a purchase decision today?
The best advice to give to anyone, buying real estate anywhere, is simple. Educate yourself. It's necessary to understand the market, pricing, and value. Value is the most important, what impacts value ie. schools, location, size, the building, common charges, taxes, etc. By understanding these data points, you are putting yourself at great advantage.
Whatever you're looking for, whether you're buying a toothbrush or a Penthouse on Central Park, you need to feel confident in what you're buying. Helping people buy $10M+ homes and having their confidence are among the most humbling and rewarding aspects of my life.
What market trends have emerged in your market in the last few months?
We’re seeing signed contract activity, specifically volume, rivaling levels from 2015 and 2016, when the market was at all time highs.
Covid basically froze an entire spring's worth of supply in the Manhattan market. April, May, and June is when a huge amount of inventory comes on, and abruptly covid closed down all of that.
What’s interesting is this spring we're going to have a year's worth of lagged supply come to market given no one listed spring of 2020. Should be interesting to see if there’s an oversupply in time.
We are at an inflection point in the market. Buyers and renters are quickly returning to NYC with a limited amount of inventory. The spring market should bring on a slew of new homes. I question whether we will end up in a balanced market or leaning towards too much or too little inventory. Only time will tell.
What are sellers most concerned about right now? What’s motivating them to sell?
Sellers right now are worried that everyone wants the covid deal. The covid deal was mid covid, it was around before the vaccine rolled out.
I remember having this conversation with buyers a thousand times, with most asking, “When’s my covid deal?” I said, “Your covid deal is from now, until news starts coming out giving a timeline for the vaccine.” The minute there is a timeline for the vaccine, every single seller is going to say “I'm waiting until the vaccine comes out, I don't need to sell - the world’s going to get back to normal.”
Sellers now are having a renaissance where New Yorkers are coming back, there's not a lot of inventory, and they're getting their prices.
What excites you the most about being a broker?
I truly enjoy having clients who I get to build great, long term relationships with. I have clients now I hope to still be working with in 20 years. I love helping people find home.