Pandemic marks peak buying time for New York property, says real estate expert

Dottie Herman, vice-chair at Douglas Elliman Real Estate, discusses the 'crazy' housing market, and her efforts as a key part of the U.N.'s Womens Entrepreneurship Day.

Video Transcript

ADAM SHAPIRO: Dottie Herman is the vice chair at Douglas Elliman Real Estate LLC. A lot of people in New York City know Douglas Elliman very well. And we've invited Dottie Herman here to talk about Women's Entrepreneurship Day. But before we get there, Dottie, gotta ask you because a lot of realtors in New York City are saying that this market and other big cities which saw big downturns during the COVID pandemic, the worst of the crisis, are now seeing a big upswing. Can you help us understand what might be happening in urban markets?

DOTTIE HERMAN: It's crazy. When I say "crazy," probably the biggest markets we've had. I think that, you know, when we had the pandemic, everyone was kind of just, oh my God, what's going to happen? And I think it's-- you know, so we had that slump when we just started the pandemic. You couldn't even get into a building.

And then, you know, people fled, but some people, you know, really-- whether they went to the Hamptons or Connecticut or left for Florida, after a couple of months being there, they're like, you know what? There's no place like New York. We don't want to leave there forever.

Very savvy investors and savvy real estate people realized, hey, New York City is never a bargain. So that was an opportunity to, firstly, buy something bigger-- if you were a New Yorker and you knew you were going to be there, it was just a matter of when-- and also with the whole new trends which are here to stay from COVID, where people do not have to work at home-- you know, they worked at home more.

That home became more important. And they wanted space, and they wanted outdoor space. And what better time to do that and trade up when the city was, at that time, down in price? You know, it's catching up. It's close to where it was pre-pandemic. The streets are busy. The restaurants-- you can't get a reservation. Now the foreigners are back.

So I think that you still have a small window where you can still get a little bit less than you could have pre-pandemic, but that's really narrowing. And the future of, you know, New York City, although it has a few things, a few challenges left, is really going to be even bigger and better-- and a little different. A lot of young people who were priced out of New York, they are able to buy now. So it's all good.

SEANA SMITH: Yeah, Dottie, I wanted to ask you a little bit more about pricing because when you and I spoke back in the summer, you were talking about the fact that it wasn't going to remain a buyer's market for that much longer. It seems to be a similar story today. How do sales today compare to what we saw pre-pandemic, back in 2019? Are we back to those levels?

DOTTIE HERMAN: I would say-- you know, I mean, across the board, I would say not quite, but close. I mean, that margin is narrowing, you know. And again, you know, real estate-- you can't compare everything because everything is different. Of course, you know, in any market, there's always somebody who needs to make a quick deal or has to get out and we'll sell cheaper. But for the most part, I'd say the prices are very close to 2019. And the amount of sales I think have been at least 10 or 15-- we've had more sales in the last 10 or 15 years.

ADAM SHAPIRO: I want to switch gears. My aunt, by the way, used to be-- Dottie Dubin used to be a real estate agent at Douglas Elliman, but she's also an entrepreneur. She had many different businesses and careers in her lifetime. And you've just taken part in the United Nations summit celebrating female entrepreneurs. What do we need to do at this point in time to keep pushing women forward in that role as entrepreneur?

DOTTIE HERMAN: That's a really big cause of mine, and actually, I think in 2014 or 2015, I was the keynote speaker there. First of all, you start with venture capital money. If I'm not-- I mean, don't quote me exactly, but if I'm not mistaken, maybe 3% to 5%-- I don't think it's even 5%-- of venture capital money goes to women.

So we have to really invest more in women. We don't. I mean, venture capital money goes to men. And people like myself and Wendy Diamond, who heads up that organization-- we are really doing mentorships. We're working with women. And more-- more women have to get out there and help women, but it's also financing because, you know, you want to be an entrepreneur whether you're a male or a, you know, female. You have to have the financing for it. And that's where women have a big disadvantage.

So we're really working hard on-- on working with, you know, venture capitalists and people who believe in women, who I think, by the way, they're missing the boat. I think they made great-- they really work hard and really supporting them. I don't think there was much support for women entrepreneurs. I got very lucky. I really did. I borrowed a lot of money. I was young. But I was working for a company that believes in women, thank goodness.