Agent reveals new big-city living trend brokers will want to know
There has been a fear among those in the mortgage industry that buyers might remain on the sidelines early in 2026 due to geopolitical tension, causing rates to increase and uncertainty to rise.
Some of that is showing up in recent stories about current market conditions. Redfin reported Tuesday that more than 42,000 home-sale agreements fell through in February, the highest February share since they started tracking the metric in 2017.
Last week, Redfin also reported that there were 630,000 more sellers than buyers, a record high since the company began keeping track. While that seemed dramatic, some downplayed those reports a bit.
Lawrence Yun, chief economist at the National Association of Realtors, noted on LinkedIn that in most cases there are more sellers than buyers, and that more inventory is still needed in many markets.
Despite some of these reports, there is optimism budding heading into the spring. One real estate agent agreed with Yun’s sentiment about inventory challenges, even as she was optimistic about the upcoming buying season.
Maria Kourepenos (pictured top), real estate agent with Coldwell Banker Warburg, said she expected the season to be healthy.
“I expect spring to be steady—not explosive, but healthy,” Kourepenos told Mortgage Professional America. “Buyers are still here, just more thoughtful. When the right opportunity appears, they act. I think spring will hold steady. Real estate sales, based on contracts signed, for February were down compared to the same period last year, but that was most likely due to the snowstorms.
“We expect March to pick up some of this slack, but I don’t think that it will make up for February’s underperformance, because the big story right now in Manhattan isn’t a lack of buyers—it’s a lack of supply.”
Market challenges to overcome
Even with her optimism, Kourepenos noted some of the challenges that agents and brokers will be working to overcome this spring.
“Even with inflation fairly low, we are seeing the PCE tick higher, and I think we are all in for some additional pain due to disruptions in oil supply,” she said. “Rate volatility and geopolitical uncertainty will take a toll on market resilience, but serious buyers remain very much in the market.”
Because there has been volatility in the market, savvy buyers are taking their time to find the right deal. They aren’t jumping at the first thing they like, but rather doing their due diligence to find the right long-term fit, either for a primary residence or investment property.
“With this type of market, they can simply be more deliberate,” Kourepenos said. “And that is what we are seeing: buyers are taking a little longer to decide, but when they see real value or long-term potential, they move.”
Because there is still limited inventory in some big cities, Kourepenos said some buyers are turning to renovations, especially in the investment space.
“We’re also seeing buyers becoming more comfortable with renovations again, which is probably due to two factors: limited supply and the fact that renovated apartments are the best deals,” she said. “For example, we’ve had an estate apartment at 72nd Street and Fifth Avenue on the market for about six months.
“For a property that needs significant work, that’s not unusual. And this apartment had two big things going for it: an extraordinary location and panoramic Central Park views. We now have an agreed-upon offer and a buyer willing to invest in creating something beautiful and personal because the bones and setting are right.”
Rental first, then homebuyer
Due to the limited inventory in some large cities like New York, buyers are choosing another interesting strategy that mortgage brokers should keep an eye on.
These buyers are choosing to rent first in the city, which allows them to get a feel for living in the area before committing to buy a home. It also allows them to let some of the geopolitical turmoil die down and hopefully allow rates to retreat a bit before becoming a homeowner.
Kourepenos said this is a growing trend that brokers should be mindful of when talking to customers who are looking for the big-city life.
“Another interesting shift we’re seeing is people returning to New York but taking a two-step approach,” she said. “One client, an empty nester, wants to move back to Manhattan to enjoy the city's culture, restaurants, and energy again. She planned to buy immediately, but after seeing what was on the market, she realized finding the perfect apartment would take time.
“She’s now looking for a rental first, just to get a foothold in the city while continuing her search. This approach may make the rental market especially active this year. Some buyers are choosing to rent first rather than rush into a purchase, given ongoing economic and global uncertainty.”
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