Rents for new leases in New York City surged again last month even as demand for new rentals dropped—a sign that some renters are making a move into the sales market thanks to lower mortgage rates.

Manhattan median rent in August was higher year-over-year, but it didn’t set a new record, unlike the past five out of six months, according to the latest edition of the Elliman Report for Manhattan, Brooklyn, and Queens rental markets. Median rent hit $4,600, an increase of 8.4 percent over August 2024. Average rent per square foot did reach a new high of $91.07

Listings were down year over year for the second time, which Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report, attributed to the impact of the Fare Act.

New leases declined annually for the second time, as “falling mortgage rates poached rental demand,” Miller wrote in the report.

The average 30-year mortgage fell to 6.29 percent, down .25 percent from a week ago and the first time the average rate for this loan has been below 6.3 percent since early October.

The rate can be even lower for some buyers—and will likely drop more in the future, easing some competition for rentals.

As Melissa Cohn, regional vice president of William Raveis Mortgage, noted in a recent edition of her newsletter The Mortgage Monthly: “For borrowers with good credit and a healthy down payment, that rate can be as low as 5.99 percent with 0 points. It has been a very long time since I have quoted a 30-year fixed below 6 percent.”

She said the decline in rates can be attributed in part to “ongoing and growing weakness in the employment sector.” The Federal Reserve will very likely announce a rate cut of .25 percent next week, she said, with two additional cuts expected by the end of the year.

“A rate below 6 percent should help to bring new buyers into the marketplace,” she wrote.

Bidding wars for one in three new rentals in Brooklyn

In Brooklyn, median rent jumped to the highest on record, climbing 8.2 percent to $3,950 over August 2024. Bidding wars were involved in one-third of new rentals last month, according to the Elliman Report.

Listings were down for the second time, a drop of 16.3 percent from a year ago. New lease signings fell 8.1 percent from the same time period.

Queens listings increase for the 19th time

All rent metrics for Queens rose year over year last month, and median rent has increased every month this year, the Elliman Report noted. In August, Queens median rent rose 6.6 percent to $3,775.

More than one out of four new leases involved bidding wars, the second-highest share since tracking by the Elliman Report began in early 2021.

Listings increased annually for the 19th time with a 10.4 percent uptick however new lease signings were down 6.3 percent.

Manhattan market ‘cooled slightly’

The Corcoran Group also released Manhattan and Brooklyn rental market reports.

Gary Malin, COO of Corcoran, said, “Manhattan’s rental market cooled slightly in August, with leasing activity falling both month-over-month and year-over-year to its lowest August level in five years. Yet, even amid slower activity, demand remained resilient enough to keep rents elevated.”

With inventory shrinking in Brooklyn, he noted, renters “are also facing a competitive landscape with fewer available options.”

 

Mortgage rates remain below the 50-year average, but most homebuyers see them as unusually high — a perception that is driving stress, delaying purchases, and reshaping major life decisions, according to a nationwide survey conducted in August.

The survey of more than 1,000 buyers, released this week by Tomo Mortgage, highlights the gap between economic reality and consumer sentiment in the housing market.

Nearly one in three respondents to the survey said high mortgage rates are the nation’s biggest economic problem, and three-quarters said current rates are abnormally high, despite being lower than historic norms.

“Even with the recent dip in interest rates, the reality for most Americans hasn’t changed — buying a home still feels daunting,” said Tomo Mortgage CEO Greg Schwartz. “One in three buyers now see high mortgage rates as the country’s biggest economic problem, and 75% believe today’s rates are unusually high — even though they’re below the 50-year average.

“That disconnect between perception and reality is driving real stress in the market, and until confidence returns, demand will remain fragile.”

Delayed decisions

Mortgage rates play a central role in buyer hesitation.

About 85% said they had postponed their search at some point while waiting for lower rates. One-quarter reported delaying for more than a year.

Pessimism is high, with 82% believing rates will stay the same or rise in the next six months — in contrast with forecasts from major institutions predicting modest declines.

This standstill has left many buyers in limbo, saying they are both “actively searching” and waiting for rates to drop before committing.

Financial pressure, sacrifice

The rising cost of homeownership has reshaped how Americans plan their lives.

In 2000, a typical homebuyer spent about 20% of income on a mortgage — but today, that figure has climbed to 38%, the report said.

Survey results show that 59% of buyers delayed or abandoned major milestones such as marriage, children, education or career changes because of housing expenses.

More than one-third said the market made them “rethink their entire life.”

Sacrifice is widespread. Nearly half of buyers said they would skip vacations, while others reported cutting into retirement or emergency savings.

About one in three said they had given up on a dream job or career change to afford a home.

Financial anxiety is pervasive — with 60% expecting to feel “house poor” once they close, and 42% said buying a home today feels “incredibly risky.”

Historic context

Today’s rates are roughly one percentage point below the 50-year average of 7.7%, according to Freddie Mac.

But the pandemic’s record-low rates have created a “recency bias” that leaves many buyers feeling current levels are abnormally high, the survey added.

Fifty-five percent of respondents believed rates are higher now than in the 1980s — when they were nearly three times today’s levels.

Seventy percent thought rates had increased compared with last year, though in reality they were flat or slightly lower.

Misunderstandings and confusion

The survey also uncovered widespread misunderstanding of how mortgages work, contributing to unnecessary costs.

• Two-thirds of buyers said they did not understand “points,” often mistaking them for required fees.
• More than half assumed advertised rates on lender websites reflected what typical buyers would receive, though those rates usually apply only to borrowers with excellent credit and large down payments.
• Sixty percent did not know they could negotiate rates with lenders.

Despite the financial stakes, most buyers spend little time comparing lenders.

Over half said they devoted less than three hours to the process, and one in five spent less than an hour. Nearly 60% admitted they had spent more time shopping for clothes or hotels than for a mortgage.

Researchers estimate this confusion will cost Americans $11 billion in 2025.

One of the most important parts of a real estate agent’s job is helping buyers understand why working with you matters, especially now that the new rules around representation and compensation have changed the conversation. Now, more than ever, it is important for buyers to understand the value your representation brings to the table.

Since being an agent is ultimately about building relationships, your goal is to connect with your buyers and make them feel confident, informed, and assured by your representation. Your ability to clearly explain your value will set the tone for your relationship,  help promote trust, and show your buyers why they are much better off working with you than taking on a real estate transaction solo.

To guide the conversation, start with what’s changed

Buyers have likely heard about the NAR settlement and the new real estate rules, but they probably don’t fully understand them. Since purchasing a home is one of the biggest financial and emotional decisions most people will ever make, it’s important that you help homebuyers understand how the new rules may affect them and what your role is in representing their interests. To start, break it down simply:

1. Written agreements are required.
Buyers must clearly understand that, before you show them any homes, they will have to sign a buyer agency agreement. Explain that this agreement simply clarifies your role as their advocate and spells out your responsibilities, as well as how you get paid.

2. Compensation is no longer assumed.
Let buyers know that while sellers often still cover the buyer’s agent fee, it’s not guaranteed. Your agreement will spell out exactly how compensation is handled, so there’s no guesswork for them.

3. Transparency is the new standard.
Transparency is always a good thing, so position this as a positive. Buyers now know up front what services you provide and how you’re compensated. This new standard lines up with the way attorneys, financial advisors, and other professional service providershandle communicating their compensation.

Taking time to break down and explain the new rules shows the buyer your commitment to acting in their best interest throughout this process. Knowing that you are there to guide them, they are more likely to feel comfortable with each stage of the transaction.

Explain what you actually do

Some buyers may think agents just unlock doors or send listings. As real estate agents, we know there is so much more to what we provide. Show them the bigger picture by highlighting your role as their:

• Guide: Identifying homes that fit their needs, many of which they can’t easily find online.

• Analyst: Providing market insights, which help determine what a home is worth, so they don’t overpay.

• Negotiator: Crafting offers and counteroffers to help them get the best price and fight for their best interest

• Protector: Ensuring contracts, inspections, and deadlines are handled correctly.

• Problem-solver: Keeping the deal on track when issues arise.

By explaining the bigger picture and how broad your role is as their advocate, you make your buyer understand that you’re not just helping them find a home; you’re helping them secure it on the best possible terms. Having this conversation early reduces the chance that there will be surprises or misunderstandings about your representation. This transparency paves the way for a more positive experience.

Address the cost concern head-on

This is where buyers often hesitate, so be proactive. While the new rules say a buyer’s agent needs to have a written agreement, and that agreement says how they’ll get paid, that doesn’t necessarily mean the buyer has to write a check for thousands of dollars out of pocket. By clearly explaining the alternatives to your buyer, you help them understand that the cost is not as overwhelming as they may have assumed.

Clearly explain the options for payment of the commission:

• Many times, the seller still offers to cover the buyer’s agent fee. Tell your buyer, if that’s the case, nothing changes for them, and they won’t pay out of pocket.

• If the seller doesn’t offer to cover the fee, the fee can often be structured into the deal. Use simple examples (e.g., rolling the fee into the purchase price and mortgage) so buyers see it’s manageable.

However the commission is handled, your value outweighs the fee the buyers may pay. You can help them better understand the value you bring by explaining the potential risks of going without representation, such as overpaying, losing deposits, or missing critical contract terms. The key is to show your buyers they aren’t adding cost by hiring you; they’re protecting themselves from potentially greater losses.

Show why going it alone is risky

Buyers may think they’ll “save money” without an agent. Most buyers are counting every dollar when it comes to what they can afford, or are willing to spend, to buy a home. Help them see the pitfalls of not using a real estate professional to represent them:

1. Many times, the listing agent works for the seller, so their loyalty and fiduciary duty is only to the seller. That agent will be working hard to make sure the seller gets top dollar from the buyer, so the buyer needs you on their side. 

2. Negotiating solo is like stepping into a boxing ring with a trained fighter. Your buyer may land a punch, but the professional agent knows how to wear them down and win.

3. One legal mistake can cost thousands of dollars, whether it’s a lost deposit, or being forced into a deal the buyer can’t afford. You are their insurance policy that no money is left on the table and that they don’t pay for unnecessary mistakes. 

4. Time and stress are real costs. No one likes to wonder, “What do I do next?” Your representation makes sure that won’t happen and frees your buyer to focus on other things. 

When all is said and done, your job is to level the playing field and protect the buyer’s interests.While this will likely save them more money than what they pay in fees, it will also save them valuable time navigating the process by themselves. 

Help them choose you with confidence

The University of Southern California posted a study from the American Marketing Association, which posits that consumers crave authenticity so much that this concept is now one of the cornerstones of all marketing efforts. That’s why being authentic and understanding your clients’ needs is so vital.

Buyers may interview multiple agents, so a positive first impression is key to helping the buyer understand the value of choosing you to represent them. Position yourself as the professional who:

• Has strong experience representing buyers.
• Knows the local market inside and out.
• Communicates clearly and responsively.
• Provides full transparency about agreements and fees.

Always be authentic in your conversations, as well as clear and up front in your explanations, because buyers are looking for trust as much as expertise. Buyers want an expert, but they also want someone who takes the time to make sure they understand each step of the transaction. The more comfortable they are with the information you provide them, the more likely they are to feel positively about the experience of working with you. 

Your bottom-line message to buyers

With the new rules in place, your role as a buyer’s agent is more important than ever. Remind buyers that by hiring you, they’re gaining an advocate who protects their interests, saves them money, and guides them through one of the most significant purchases of their lives. Drive the point home by making it clear: the potential cost of going without representation could be greater than any fee they may pay.

Darryl Davis, CSP, has spoken to, trained, and coached more than 600,000 real estate professionals around the globe. He is a bestselling author for McGraw-Hill Publishing, and his book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for most sold book to real estate agents.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: tracey@hwmedia.com

An Australian postie went from “feeling stuck” and unable to save any money to now being worth more than $1.7 million.

Rodney Ung, a Sydney dad, worked as a chef then as a postie for years and felt like he’d worked hard his whole life but had nothing to show for it. He was earning about $60,000-$70,000 in both jobs and had no property, little savings or investments and felt like he was living week to week.

“When I was young, I was taught that the only way to succeed in life was to just work hard,” Mr Ung said.

“I’d been working hard for 16 years and yet despite putting aside some savings and a few shares, my wife and I had next to no assets and felt stuck in our jobs.

“I wanted to improve my financial situation but I didn’t know what to do.

“I was stuck in the cycle of always having to worry about the bills.”

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Wanting to get ahead, Mr Ung engaged financial strategist Todd Polke and by making a few adjustments, he helped him put $15,000 in his savings in just eight months.

He began by culling subscriptions and finding better deals on internet and bills, he added.

“Now about five years later, after the debt, I have about $1.7 million (in my portfolio),” Mr Ung said.

Mr Ung has now purchased two investment properties while still renting, also known as “rentvesting”.

The two properties he went on to purchase appreciated significantly, with one increasing from $606,000 to $945,000 and the other from $750,000 to $1.02 million, adding over $600,000 in equity, he claims.

As well as the properties, he’s diversified his portfolio to include ETFs, cryptocurrency, shares and venture capital.

Mr Polke, author of Escape the Middle: Switch on Your Millionaire Mindset, said it was important to start from what you want, not what you don’t want.

“We set four individual targets with dollar figures and what kind of portfolio and income generation you need,” Mr Polke said.

“Identify the gap of where you need to be and some of the biggest changes to bridge that rather than sitting in this idea of we’ll be right mate.

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“One of the biggest things, and Rodney was really good at this, is know your money map,” Mr Polke added.

“Every time a dollar comes into your account, each dollar has a plan and it has a purpose.

“It’s also not taking for granted how much things cost, go through every area of you life. Every few months, he would be negotiating better deals.”

Mr Ung said he changed internet and bill providers regularly, he got cashbacks and credits, and hadn’t paid an energy bill in eight months through this method.

“It takes effort but it’s worth it. It helped me build a good amount in savings,” he said.

He was also determined to look for ways to increase his salary and is now training to be a Sydney train driver to increase his annual salary.

Mr Polke said his philosophy was that wealth creation is possible for everyone, regardless of what your income is. He said a lot of it was a mindset shift, as well as habit building and that it was important to put a plan in place.

“Wealth creation is a system, it’s about building a better system,” he said.

“He (Rodney) didn’t come in earning six figures, he was an average income earner, an and he got a plan and took action.

“If someone is willing to commit to the journey and the long term vision, it is absolutely possible.”

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The post How Sydney postie went from no savings to $1.7m portfolio appeared first on realestate.com.au.

Radio and television queen Chrissie Swan has farewelled her quirky mid-century Hawthorn East pad for more than $2.5m.

Swan will host a revamped version of the nineties’ lifestyle show Healthy, Wealthy & Wise on Channel 7 that’s set to air later this month.

She also presents The Chrissie Swan Show on radio station Nova FM.

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After placing as runner-up on reality TV show Big Brother’s 2003 season, Swan went on to host or co-host programs including The Circle, The Great Australian Spelling Bee, Would I Lie To You Australia and The Project.

In 2011, Swan won the Logie Awards’ Most Popular New Female Talent, and was nominated for the Most Popular TV Presenter and Gold Logie gongs.

She came third in 2015’s I’m a Celebrity Get Me Out of Here! and appeared in 2021’s Celebrity MasterChef Australia.

In May, Swan listed the Federation-era property that’s configured into two separate residences with $2.6m-$2.86m price hopes.

The home at Mayston St has since sold for a sum which industry sources put at just below the range’s lower end.

Swan renovated the address herself after purchasing it three years ago.

She named the main three-bedroom house featuring original teak timber panelling and floor-to-ceiling windows ‘Judy’ after the iconic Hollywood actor and singer Judy Garland.

The two-bedroom residence to the rear is named ‘Liza’ after Judy’s daughter, Academy Award-winning actor and singer Liza Minnelli known for the 1972 film Cabaret and the 1977 movie New York, New York directed by Martin Scorsese.

Swan filmed an online video for the home’s sales campaign with presenter, MC and marriage celebrant Shura Taft, in which she told him that houses needed names because they were “a member of the family”.

In the clip, Swan described the abode, which had undergone a circa-1950s upgrade, as “completely original” when she bought.

“I actually just walked in and thought, ‘Oh look, I’ll just pull up the carpets and polish the boards and then that will make all the difference’,” she said in the video.

“Then the more time I spent in here, the more I fell in love with it and the more I thought, ‘I’ve really got to do a great job here, I’ve really got to do her justice’.”

Swan demolished a bank of cupboards and removed an “ancient creaky oven” in Judy’s kitchen, then added blue and white wallpaper in the living and dining area.

Other individual touches include plant-and-animal patterned wallpaper in one of the bedrooms and a “dramatic exit” sign above a doorway.

The home was listed through Whitefox’s Ellie Morish.

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