Bonus season is a pivotal time for many across the country, often marked on calendars with anticipation. Year-end bonuses, usually distributed in the first few months of the new year, traditionally bring substantial windfalls to Americans in industries that abide by this compensation model, including but not limited to banks, financial enterprises, and law firms. However, recent market conditions have impacted this system, and experts predict a significant decline in bonuses this year. Many are wondering how stagnant bonuses might impact the real estate market.
“When Wall Street bonuses are low, there are not as many buyers in the market. The younger generation on Wall Strett who may be renting and waiting for their bonus to purchase their first home may wait another year if they don’t receive the bonus they expected, so they can purchase the property they really want,” explains Nicole Gary, a licensed real estate salesperson for Keller Williams NYC specializing in the luxury market. “This, coupled with higher interest rates, may have an effect on our real estate market.”