Real Estate Roundup: June 2, 2025
Leonard Steinberg, Compass Agent
As May winds down, it feels fitting to pause and reflect on the whirlwind of trends, insights, and stories that shaped the real estate world—and the world around us—this past month. From economic shifts and tax reform to aging homes, price psychology, and private exclusives, here’s a curated look at the themes that emerged.
The Real Estate of Aging
We often think about aging in terms of people—but properties age too. One seller recently realized that their 3,000-square-foot Manhattan home hadn’t appreciated as much as expected over 20 years. The culprit? A premium paid two decades ago for a top-tier, era-specific renovation. While everything was still “mint,” systems had aged out, styles had shifted, and today’s buyers saw costly updates ahead.
Just like luxury cars or vintage furniture, homes need maintenance and modernization to maintain value. The takeaway? Even the most pristine renovation has a shelf life—and staging or light updates can make a world of difference at resale.
Inflation: Short-Term vs. Long-Term
This month brought important context around inflation. While tariffs are likely to raise prices on many goods in the short term, the distinction between one-time price surges and ongoing, compounding inflation is critical.
A sharp price jump, like during the early COVID days, may fade. But consistent annual increases? That’s long-term inflation—and it quietly compounds, much like rent escalations or rising condo fees. The key is learning how to tell the difference... and prepare accordingly.
The Psychology of Price Acceptance
Speaking of rising costs, Leonard observed an uncanny phenomenon: cost conditioning. Whether it’s $9 congestion tolls, higher condo fees, or property taxes, people grumble, pause... and then adapt. Quickly.
It’s a fascinating human pattern. As buyers, we rarely balk forever. We adjust to the new normal—until the next one arrives. The lesson for real estate? Don’t underestimate buyers’ resilience. But also don’t assume they won’t eventually scrutinize the value they’re getting.
Emotions Management: The True Role of Agents
Behind every offer, every open house, and every bid is a complex emotional journey. Real estate agents are, at heart, in the “Emotions Management Profession.”
Whether guiding a seller through multiple bids, explaining why a property hasn’t moved, or supporting a buyer through a lost deal, empathy and calm matter more than ever. As Leonard put it: “Knowing—via the words of a professional—is calming. Ordering calm doesn’t work.”
Design Trends & Lifestyle Shifts
From longevity rooms (yes, that’s a thing!) to barefoot luxury and en suite everything, home design is moving beyond aesthetics into wellness, convenience, and practicality. Even bathrooms are getting smarter, with wall-mounted fixtures and thoughtful lighting topping the must-have list.
Culturally, events like the Met Gala and Cinco de Mayo highlight the powerful link between big moments and big money. These gatherings drive billions in local economic activity, proving that style, culture, and commerce are deeply intertwined.
Infrastructure & Inventory: A National Housing Puzzle
Leonard’s May reflections also spotlighted broader challenges in the housing market. Building affordable homes isn’t just about land—it's about infrastructure. Without roads, utilities, and services, even the best ideas remain unbuilt.
At the same time, luxury inventory has shifted. We’re seeing smaller bedrooms, “housing shrinkflation,” and buyers scaling back expectations to offset rising mortgage rates. Creative solutions—and smarter urban planning—will be essential.
Final Thoughts
From the aging of properties to the psychology of pricing and the emotional complexity of transactions, May reminded us that real estate is never just about bricks and mortar—it’s about timing, people, and perception. Whether navigating inflation’s short-term spikes or long-term creep, rethinking outdated renovations, or understanding the strategic value of discretion in listings, success in today’s market demands clarity, empathy, and adaptability. As we move into summer, these insights are more than market observations—they’re essential tools for smart, strategic real estate decisions.
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Featuring
Leonard Steinberg
Compass Agent
