Elliman to agents: Time to give sellers a reality check

Internal email shows sales director telling agents to “get ahead” of slowing economy

New York /
Jun.June 17, 2022 01:01 PM
Douglas Elliman's Alfred Renna (Douglas Elliman, iStock, Illustration by Kevin Cifuentes for The Real Deal)

Douglas Elliman’s Alfred Renna (Douglas Elliman, iStock, Illustration by Kevin Cifuentes for The Real Deal)

In preparation for a cooling market, Douglas Elliman has warned New York City agents to advise sellers to consider price adjustments.

In an email to staff obtained by The Real Deal, Alfred Renna, a sales director at the company, cited interest rate hikes and the softening economy to come.

“If possible, it’s best to get ahead of this direction and not ‘chase the market down,’” Renna wrote. “Your sellers may want to consider price adjustments sooner rather than take a wait and see approach.”

Signed contracts data included in the email show a slight dip across indicators for Manhattan and Brooklyn. In the first two weeks of June, Manhattan signed contracts were down 34 percent year over year. Sales volume was down 21 percent, while medium sales price was up nearly 14 percent and discount was 3 percent.

Manhattan sales have been more impacted than those in Brooklyn, Renna said in the email.

Brooklyn’s signed contracts were the same from early last June, while sales volume was down 12 percent. Median sales price was up 3 percent and discount ticked down 3 percent.

“Douglas Elliman is a data-driven company,” a spokesperson for Elliman said in a statement. “We use this and other data from Jonathan Miller to inform marketing and sales strategies and pricing recommendations.”

“We are confident that as current interest rate activity helps drive more buyers into the market, we will see less aspirational pricing and believe DE is well positioned for it,” the spokesperson added.

The brokerage world has already started to feel the effects of rising interest rates, along with inflation and a cooling market.

Earlier this week, Compass and Redfin laid off 450 and 470 employees respectively, citing economic uncertainty.

“As leaders in the real estate industry, you are on the front lines seeing the current economic trends take shape before they hit the rest of the economy, so it’s no surprise to you that the economic environment has consistently worsened over these last few months,” Compass CEO Robert Reffkin wrote in an email to staff.

The average 30-year fixed mortgage rate this week flirted with 6 percent, twice what it was just a few months ago.





    Related Articles

    arrow_forward_ios
    John Giannone and Jac Credaroli (Credit: iStock)
    Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
    Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
    Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)
    Douglas Elliman is coming to Texas
    Douglas Elliman is coming to Texas
    Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)
    Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
    Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
    The glamping tent (Glamping Hub, iStock)
    Happy glamper: Tented Airbnb only miles from Hawaii volcano
    Happy glamper: Tented Airbnb only miles from Hawaii volcano
    1200 Silo Ln, York, NE 68467 (Redfin, iStock)
    Missile silo converted into apocalypse-ready home asking $550K
    Missile silo converted into apocalypse-ready home asking $550K
    Elvis Presley and his childhood home in Tupelo, MI
    Don’t be cruel: Elvis childhood home back on auction block
    Don’t be cruel: Elvis childhood home back on auction block
    Passage Island (Fay Ranches, iStock)
    Private Alaskan island that expands at low tide to ask $20M
    Private Alaskan island that expands at low tide to ask $20M
    A photo illustration of No. 15 Shouson Hill Road West in Hong Kong (Emperor International Holdings Limited, iStock)
    Hong Kong’s priciest 2022 home fetches $111M
    Hong Kong’s priciest 2022 home fetches $111M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...