This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. So earlier on Bloomberg, JPMorgan Private Bank chief investment strategist Thomas Kennedy says poorly performing financial and housing stocks are signaling a cyclical slowdown the US economy, even as the FED plans to tighten policy further this year. Housing stocks, though I mentioned, we actually saw them up as a group today, but they're down more than so far this year. Well, it's an
entirely different animal. And we talked about the island of Manhattan and New York City in general, and that's why we're fortunate to have Barbara fox On, whose president of Fox Residential Group. Fox Residential has been doing this for decades. Barbara, it's good to have you with us. Um give us an idea of what you're seeing in the in the real estate market here in New York City right now,
because there's been so much volatility. Carol and I talked about it each and every day with the equity market, and I'm wondering if we're starting to see any of that. And I'll use the term from Abigail do a little earlier today. Um, she said, stocks for a little smushy this year, I believe, UM, real estate not so much, not at all. Actually, the market is just on fire right now. And UM, as a real estate professional, we move fast when the market is so good, it's UM,
it's really amazing. We're having the problem. The biggest problem we're having right now is UM supply. I mean all of the supply has been absorbed, not all of it, but much of it has been absorbed. And UM, it's just it's pushing the prices higher again. And it's really like a crazy market. So who's buying and how are they buying? Is it all cash deals? Well, that's the interesting thing. You know, Manhattan is its own animal, and I think about half of all of our deals are
all cash deals. So that means that's good news. And in in that it the higher interest rates which are sure to come, will not particularly affect us. And UM. Also, if we found when the stock market is mushy or whatever you called it, UM, that the the I'm sorry anything the real estate market UM tends to be really good. UM in that people use that as an investment vehicle rather than the stock market. So right now. There are a lot of things pointing very positively in the direction
of investment in real estate. So back to that, who's buying? And is it all cash deals? Sorry? Um? Who's buying? Americans are buying. I just um spent the day showing apartments to somebody from Texas and somebody that's moving in from California. And there are a lot of Americans around. I'm not seeing a lot of foreign investors, um, even though I think that there's gonna be there's gonna be a lot more coming forward, UM in the future. UM, And they are um, by and large, the big ticket items,
particularly are all cash deals. Hey, Barbara, I mentioned you've been doing this for decades. You created Fox Residential Group back in is a boutique real estate firm. You've seen a lot of cycles when it comes to real estate in New York City, And I'm wondering what happens after you start to see a market this hot. Are you seeing any warning signs right now? What comes next? When does the market cool down? Or is this time different? Well,
it's interesting. I don't know whether it's different yet that I'm sure we'll find out. But what what happens is that our market has historically been very cyclical with regard to the seasons. Spring is usually a very hot market, Fall is a hot market. The dead of summer, July and August are pretty slow. But in the last last year, for example, one of our biggest months the whole year was July. So yeah, it's just everything is his sort of you know, topsy turvy now and we don't really
know where it's going. I um, I think that with the interest rates increasing at this point, um, I think that people are going to try to get into the market now as as soon as possible because they know that they're going to be the people that are borrowing are going to want to be able to get the lowest interest rate possible, and and that may be a little bit of an impetus for people to buy now in the next six months to a year. So I'm on your website and I love real estate. I love
Carol's face. But she's clicking through, clicking through these. She's just like, I'll take this one, I'll take this. I'm touch it flies right now because my mouth is open pretty big. D thirty five million, Um, this is uh? Where is it? Uh? Park Avenue forty two Park Avenue, five beds. It's like five and a half baths. I think, Um, I am curious because we often talk Barbara about bidding wars,
certainly for homes around the US. Is there going to be a bidding war and a property like this or is this a CEO, a tech entrepreneur, financial titan you comes in and it's you know, there isn't a bidding war, just says I want it and let's just do the deal. Yeah. Well, it's just usually if somebody is going to spend that kind of money, they they will spend whatever. If they wanted that badly, they'll spend whatever they need to spend to get it. So they generally aren't bidding wars. I mean,
by and large, aren't bidding wars for these huge number properties. Um, the bidding wars common sort of the I would say three to eight million properties where they're not very many of them around and the ones that are around that, particularly the ones that are in good condition, um, are the ones that are very much in demand because that's a popular price point between I would say between three and eight two and eight, three and eight, something like that.
Don't you don't you think though, for the deals that aren't all cash, the stuff that could be maybe sub three million, sub two and a half million. Are those going to get hit by rising rising interest rates? I think they're ultimately they will be hit if the interest rates go up considerably. But you know it's New York is very strange and that we get used to things, and we will get used to the higher interest rates. I was in the business when the interest rates were
eighteen percent and we were selling like crazy. So you know, it's that that everybody gets accustomed to the rising interest rates and they and they adjust to it. And it's just like the extra taxes that we have to pay on the sale of real estate. Um. You know, it looks terrible in their first instituting these these fees, but um, everybody gets used to it and they just pay it. What has the pandemic? How has the pandemic impacted your market?
Because I think there was a lot of discussions about people leaving New York cities, even the wealthier you know for good. What impact has the pen and the cat if any, Um, it's had a huge impact. Um, it's a lot of people did leave the city, and a lot of people left the city, left their old apartments and sold their old departments and then bought Pierta tears in the city. And I see we're seeing a lot
of that right now. Um, people who weren't sure they wanted to sell, but they didn't really want to keep these big, you know, family homes for years and years that they don't need. Um. So we're seeing a lot of that happening. Um. But there's so many um, you know, new people coming into the city and there's um, there's a whole resurgence of of the sales and these big family apartments. Well, it's always fun to talk real estate, fun too, especially talk with people about it. I know,
I love just perusing the website. UM. Barbara, thank you so much. Look forward to checking in with you again in the future. Barbara Fox, she's president of Fox Residential Group, joining us on the phone in New York City. Millions too much, girl, There's one for nine point five at Park Avenue. Sign me up, done. I don't even need to look at it. Sight unseen