Jules Borbely
Oxford Property Group
As the chief operating officer of Oxford Property Group, Jules Borbely ensures that the company remains an innovative and dynamic brokerage firm for over 500 agents. He has helped close hundreds of deals, generating over $8 million in rental income.
Borbely is also a Certified Buyer Representative — a designation given to less than 1% of all licensed agents by the Real Estate Board of New York — and regularly holds seminars to educate others about the sales process. He is also a Certified Home Stager by the New York Institute of Art and Design. Borbely’s clients include A-list celebrities, politicians, professionals and friends.
Before starting his real estate career, Borbely founded and sold his own company. He later worked for a Staples subsidiary in Manhattan, where he led an expansion of the company’s most successful office to New Jersey.
Born in Hungary, he earned a bachelor’s degree in business in England and Hungary and pursued an M.B.A. at Montclair State University.
Luxury sales are down in Manhattan, both in terms of dollars and volume. How do you see the market?
The market strongly favors buyers at the moment. The number of closings is at 2009 levels, while inventory levels have continued to rise for the last four years. Apartments stay on the market for over 100 days on average, the highest number in seven years. I recommend my buyers take advantage of the market and tell my sellers to delay listing their apartment for sale.
What is selling where?
Everything is still selling, just not at the speed and price as before. New York real estate will always be attractive because of its liquidity. There are always plenty of buyers to step in if there is a good deal. Apartments below $1 million are attracting the most traffic as well as units that are comparatively cheaper: starter one bedrooms and two bedrooms.
Who is buying these days?
Investors are still staying away from making purchases in New York and waiting to see what happens in the market over the next few months. We mostly see buyers looking for their first apartment or those who want to upgrade. This year, we helped many clients sell and then buy apartments.
What must brokers and sellers do to stand out among the glut of supply?
Pricing apartments right — at exactly or below what they are worth — and generating as much traffic as possible on day one is the key! Overpriced units generate very little traffic and will sit on the market for a long time, causing further damage as price drops. This can not be avoided. Agents who get listings by promising unrealistic prices will have a hard time actually selling and making money. It has to be done right from the beginning.
What amenities matter? Has that changed in recent years?
A couple of years ago, it was a race to create unique amenities. It was also a way for developers to make up for small apartment sizes. Today, buyers (and renters) focus more on amenities that they actually use multiple times a week, like a laundry room or gym. Amenities like a movie theater or sushi-making classes aren’t as attractive as they used to be. Although they seem fun, they haven’t perceived the same way as they once were.
Are you seeing more clients looking to buy and then rent the apartment out?
We do not see that. We expected more investors as prices fell, but that did not happen. Most investors think that prices will continue to decrease, and they do not want to step in until we get closer to the election and see how the market changes before committing.
When will the oversupply even out?
Although it’s impossible to predict when the market will turn around, a lot of people are expecting changes around Election Day. I suggest buyers make their purchase within the next few months since it’s impossible to time when we hit the bottom. As long as buyers hold onto the apartment for at least five years, they should be very happy when it’s time to sell. Although prices decline periodically in New York, that never happens for an extended period of time.
