Thursday, February 20, 2020

Halstead Open House Index - report from weekend of February 9, 2020



Good morning Halstead Open House Index members and supporters!

It is Thursday, time to share my weekly open house recap with your sellers! So, what happened last weekend?

The numbers are in and the average attendance in all of NYC jumped to 4.85 parties per open house. (From 4.20 recorded the weekend prior.) A nice 15% uptick in traffic. Last year, on February 10 weekend, we reported 4.50. We received 248 replies this week, which does not make me particularly happy. We used to get 350-400 responses each week, what happened? 

26 open houses reported zero traffic, this is 10%. What are you guys doing at such slow open houses? I recommend the book “Million Dollar Networking” from Andrea Nirenberg. Superb advice on how to expand and nurture your network. So you keep your pipeline full with referrals.

The most visited open house this weekend broke all recent records. Dawn Silverstein from Corcoran reported 91 parties at her first open house at 231 Park Place in Park Slope in Brooklyn. Yup, you read it right. She said there were probably 180 people at the open house! Here, in her own words: “We think there are a few factors why we had such a large crowd. The apartment is very charming and beautifully renovated. Our staging and photos really captured the highlights of the apartment. From the data we saw, we feel we priced it well. There were two of us and there was a steady flow over the 2 hour window. Someone actually said this will give her an idea of what it would be like to throw a party. So far we have 1 offer, expecting more to come in.”


There were 5607 open houses held in NYC last weekend and roughly 7198 prospective buyers were hopping from one to another. Here is the dataset. Let’s check the boroughs:

Manhattan – the average jumped to 4.20, from 3.79 the weekend earlier. Nice 10% uptick in Manhattan. East Village (10.71) was through the roof, thanks to one open house by Rudi Hanja of BHS, who reported 41 parties. Even without it, East Village would have reported 5.66, better than average. UWS was stronger than average (5.22) and so was Central & West Village (4.73). Upper East Side was weak last weekend (3.73) and so was in Harlem (3.00), Midtown East (3.26) and Midtown West (3.14). Manhattan recorded 4.39 last year on February 10, 2019. See the rest below. 

Brooklyn – the average jumped to 8.22, from 6.92 the weekend before. But, primarily thanks to this one record open house. Without it Brooklyn actually went down to 5.85. This shows you how tricky statistics can be with small sample sizes. One outlier result completely changes the direction of averages. See the rest of the results below. We received 36 replies from Brooklyn, the same as the weekend before. Brooklyn recorded 5.26 last year on this weekend.

Bronx – the average jumped to 5.08, from 3.17 the weekend earlier. Busy in Riverdale with 5.33.

Queens – the average jumped to 4.63, from 3.33 the weekend earlier. Just 8 open houses reported from Queens.

Staten Island – back on the map with 9.00 visitors at one open house reported from the Richmond County.

Size – JR4s did really well with 9.88, then 4BR apartments with 6.75. The slowest was at studio and 4BR open houses. See all the numbers below.

Price - $500K-$1M range was the best with 6.05. Even without that one OH with 91 parties, this price range recorded 5.29, still the best. Very slow in $3M+ range (2.50).

Condition – for change, properties described as “Mint, excellent condition” attracted the most parties: 5.59. Wrecks were the slowest.

First Open House – huge 285% more traffic at first open house (10.84), vs. those “stale” ones (3.80).

By Appointment Only – just 59% more traffic at “normal” open houses (5.01) vs. those advertised “by appointment only” (3.14).

This is all for now, partners! Are you breathing the collective sigh of relief with the judge ruling a stay on that crazy DOS ruling last week? This was one of the craziest weeks in my career. Tell me more how to throw the industry in chaos with irresponsible interpretation of the new, really poorly written, rental laws. We received a number of requests from rental customers demanding their fee refund, because they “read it in the papers, hence it must be right!” Irresponsible journalism + irresponsible DOS = lethal combination.

Also, did you catch the news that StreetEasy now has a real estate broker license in NY and they acquired the mortgage company? Aren’t you just a bit worried, what their plans are in the near or semi-near future? I received this comment from Aimee Becker from Sotheby’s and I am printing it here with her permission:

“Hi Fritz,
Love your reports! I didn’t have any new listings in January but I’m listing a few things in the coming weeks and will certainly be participating again.

As I’m sure you saw this week as well, StreetEasy got their brokerage license, thus solidifying what I always thought- they will eventually start to charge referral fees for any traffic that comes through their site. Either that or they’ll be hiring their own agents and taking all of the leads for themselves. Because of this, I have decided to no longer give my information out to them and will not be listing my properties on StreetEasy. I assume eventually other people will do the same. In the beginning I think this will affect Open House turnout so I will make a note of it on my submissions. I have a bunch of ideas on how to market the properties without StreetEasy and I’ll let you know how it goes!! We have to cut the ties at some point so I’ll just be the first in line! Hopefully REBNY or the big brokerages can get together and do something non-profit. I'll keep you updated on how it goes with my listings over the next few weeks. I am planning to start an Instagram page called @notonstreeteasy where I can list mine or anyone else’s listings/open houses if they aren't on StreetEasy.
I'll let you know so agents have another outlet to advertise Open Houses.” 

I agree with Aimee, anyone else? Idea: in the comment section of my Google Form you can write if your exclusive was or wasn’t advertised on StreetEasy. Deal? Feel free to write to me and if you’d like me to share your thoughts here I will. And it is perfectly fine if you want to remain anonymous. This weekly report is YOURS. It reaches now over 2200 agents in NYC (plus there are some reporters and developers lurking here). Share your ideas how to make this report better, how to improve our services to consumers, how to co-operate better between brokers, how to increase the professionalism and values offered to consumers by real estate agents and brokers. I am personally really interested in how I can get more replies each week! :) 

This is all for today, folks. Best of luck at your open houses this weekend.

PS: Do not forget to check my reports on my blog at https://halsteadopenhouseindex.blogspot.com/. Great suggestion from one of our readers: write in the comment section how many visitors were direct buyers and how many came with brokers. Those of you comfortable, you can write here the exact address of your exclusive, so it becomes visible to all. Also, check the link to dataset. (In the comments section you will find interesting data, such as addresses of properties or if there was a price drop, etc.)

Best regards,

Fritz Frigan
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