1 00:00:00,720 --> 00:00:04,160 Speaker 1: You're listening to Bloomberg Sound On with Kevin Sile on 2 00:00:04,280 --> 00:00:10,320 Speaker 1: BLOOMBERGHD two. My name is Kevin Seilli. I'm the chief 3 00:00:10,320 --> 00:00:14,040 Speaker 1: Washington correspondent for Bloomberg Television and for Bloomberg Radio. And 4 00:00:14,200 --> 00:00:20,240 Speaker 1: a devastating job's day. Fourteen points seven percent unemployment, the 5 00:00:20,280 --> 00:00:25,279 Speaker 1: worst unemployment number since the Great Depression. I mean, I 6 00:00:25,280 --> 00:00:28,480 Speaker 1: don't even think economists can wrap their head around this. 7 00:00:28,560 --> 00:00:30,680 Speaker 1: And you know, look, I'm selfish. It's a doom and 8 00:00:30,720 --> 00:00:34,600 Speaker 1: gloom day inside of the nation's capital. It's raining. It 9 00:00:34,720 --> 00:00:36,960 Speaker 1: took like my third walked, you know, to get my 10 00:00:36,960 --> 00:00:39,279 Speaker 1: head around it, in between the TV and the radio thing. 11 00:00:39,720 --> 00:00:42,120 Speaker 1: And I'm thinking I need some optimism. It was just 12 00:00:42,159 --> 00:00:44,320 Speaker 1: a couple of months ago. I was in I was 13 00:00:44,360 --> 00:00:46,720 Speaker 1: in Beverly Hills, I was at the Polo Lounge. I 14 00:00:46,720 --> 00:00:49,640 Speaker 1: had all of these these visions of what the year 15 00:00:49,760 --> 00:00:53,280 Speaker 1: was gonna be like, and you know, and then bam, 16 00:00:53,320 --> 00:00:55,640 Speaker 1: like the rest of the world, really it's shut down. 17 00:00:55,720 --> 00:00:58,440 Speaker 1: I am incredibly grateful for our next guest, who I 18 00:00:58,480 --> 00:01:01,720 Speaker 1: hope is going to give me some optimist him Mauricio Yamanski. 19 00:01:01,760 --> 00:01:04,920 Speaker 1: He is the founder and CEO of the Agency, which 20 00:01:04,959 --> 00:01:09,440 Speaker 1: is a full service luxury real estate brokerage and lifestyle company. Barrico, 21 00:01:09,600 --> 00:01:11,560 Speaker 1: Welcome to the show. I saw you quoted in the 22 00:01:11,560 --> 00:01:13,360 Speaker 1: Wall Street Journal. I thought we got to get him 23 00:01:13,400 --> 00:01:16,360 Speaker 1: on because I thought you had some really interesting points 24 00:01:16,360 --> 00:01:20,039 Speaker 1: to make. Tell me, what are you optimistic in the 25 00:01:20,160 --> 00:01:25,119 Speaker 1: long run about the real estate market coming back? Hey, Kevin, 26 00:01:25,160 --> 00:01:27,080 Speaker 1: how are you? Nice to talk to you? And I 27 00:01:27,120 --> 00:01:31,039 Speaker 1: am definitely optimistic. I'm gonna give you some heavy optimism 28 00:01:31,080 --> 00:01:35,840 Speaker 1: to need it, Mauricio, I'm listening to you. We need 29 00:01:35,880 --> 00:01:38,880 Speaker 1: to bring it on. So, yeah, you look, the house 30 00:01:39,000 --> 00:01:42,040 Speaker 1: is going to become a much more important asset for everybody. Behavior. 31 00:01:42,120 --> 00:01:46,200 Speaker 1: Human behavior is going to become much more important, right so, uh, 32 00:01:46,280 --> 00:01:48,920 Speaker 1: and space is going to become, you know, more important, 33 00:01:48,920 --> 00:01:51,520 Speaker 1: and it's already becoming. We're already starting to see that. 34 00:01:51,680 --> 00:01:56,640 Speaker 1: So I think the residential class, the residential asset is 35 00:01:56,720 --> 00:01:59,680 Speaker 1: going to become a very good asset and an important asset. 36 00:02:00,400 --> 00:02:03,520 Speaker 1: So I'm optimistic on the long run. Uh, certainly the 37 00:02:03,560 --> 00:02:06,480 Speaker 1: short run COVID. You know, nobody can go out right now. 38 00:02:06,720 --> 00:02:08,200 Speaker 1: So that's what I want to know is, you know 39 00:02:08,240 --> 00:02:10,600 Speaker 1: we've seen all of the reports. Oh, people are looking 40 00:02:10,639 --> 00:02:13,400 Speaker 1: at the Hampton's for rentals and all of that. But 41 00:02:14,000 --> 00:02:17,960 Speaker 1: how has this changed your business model and the immediate 42 00:02:18,120 --> 00:02:21,840 Speaker 1: short term as everyone around the world is trying to 43 00:02:21,960 --> 00:02:26,120 Speaker 1: get their head around this thing. Yeah, so you know 44 00:02:26,280 --> 00:02:29,000 Speaker 1: right now, what we're doing is, uh, we've changed a 45 00:02:29,000 --> 00:02:30,800 Speaker 1: lot of different ways. We've changed the way that we 46 00:02:30,840 --> 00:02:34,320 Speaker 1: show property. We're doing a lot of virtual tours, were 47 00:02:34,440 --> 00:02:37,040 Speaker 1: using the Internet and a lot we're doing zoom calls, 48 00:02:37,080 --> 00:02:41,639 Speaker 1: We're doing FaceTime showings. Uh. You know, I've sold since 49 00:02:41,680 --> 00:02:45,800 Speaker 1: COVID to homes to uh Chinese buyers that haven't seen 50 00:02:45,840 --> 00:02:49,400 Speaker 1: their homes. Um, and they're you know, just moving money. Uh. 51 00:02:49,440 --> 00:02:51,960 Speaker 1: Certainly the rental market is out of control, you know, 52 00:02:52,080 --> 00:02:56,040 Speaker 1: particularly in areas like Los Angeles, Malibu, Aspen. Uh, you 53 00:02:56,040 --> 00:02:59,680 Speaker 1: know the Hampton's where there's a lot more space and uh, 54 00:03:00,040 --> 00:03:01,440 Speaker 1: you know, people want to go there, you know in 55 00:03:01,480 --> 00:03:04,120 Speaker 1: the summers. I think that the European vacation this summer 56 00:03:04,200 --> 00:03:06,760 Speaker 1: is pretty much six thing. Yeah. That's what I find 57 00:03:06,800 --> 00:03:09,160 Speaker 1: fascinating is we We've talked so much about this program 58 00:03:09,200 --> 00:03:12,920 Speaker 1: about regulations and from a regulatory perspective, but you just 59 00:03:13,000 --> 00:03:16,119 Speaker 1: broke down precisely. You touched on so many different things, 60 00:03:16,200 --> 00:03:20,200 Speaker 1: especially vacations, everything being impact and Mauricio Yamanski's on the phone. 61 00:03:20,400 --> 00:03:23,120 Speaker 1: He's the founder and CEO of the agency, which is 62 00:03:23,120 --> 00:03:27,400 Speaker 1: a full service luxury real estate brokerage and lifestyle company 63 00:03:27,600 --> 00:03:31,359 Speaker 1: from from as you look even beyond this, when are you? 64 00:03:31,720 --> 00:03:34,320 Speaker 1: I mean we were talking earlier with Maxim Waters, who's 65 00:03:34,360 --> 00:03:37,560 Speaker 1: chairs the Financial Services Committee, and she was alluding to 66 00:03:37,640 --> 00:03:40,880 Speaker 1: how every state right now is a patchwork of reopenings. 67 00:03:41,160 --> 00:03:44,720 Speaker 1: So how do you as a CEO grapple with the 68 00:03:44,800 --> 00:03:50,320 Speaker 1: patchwork of reopenings all around the country when everyone's following 69 00:03:50,360 --> 00:03:55,440 Speaker 1: a different model based on the medical experts. Yeah, it's 70 00:03:55,560 --> 00:04:01,000 Speaker 1: very confusing, and um, we're going to be know, we're 71 00:04:01,000 --> 00:04:04,320 Speaker 1: all analyzing National Associates of Realtors just put out, you know, 72 00:04:04,520 --> 00:04:06,960 Speaker 1: some guidelines today. You know. But at the end of 73 00:04:06,960 --> 00:04:08,360 Speaker 1: the day, Kevin, what we need to do is we 74 00:04:08,400 --> 00:04:10,880 Speaker 1: need to find out how we are you know, how 75 00:04:10,880 --> 00:04:12,760 Speaker 1: many people are we going to have at a at 76 00:04:12,760 --> 00:04:15,840 Speaker 1: a particular office. You know, what is the new regulations 77 00:04:15,880 --> 00:04:17,960 Speaker 1: going to look like? What are open house is going 78 00:04:18,000 --> 00:04:19,680 Speaker 1: to look like? Right? I mean, am I gonna be 79 00:04:19,720 --> 00:04:23,000 Speaker 1: allowing loads of clients to come in? Or are we 80 00:04:23,000 --> 00:04:25,359 Speaker 1: going to have a line outside of the open house 81 00:04:25,520 --> 00:04:29,599 Speaker 1: right the ppe. Uh you know, from the perspective of 82 00:04:30,360 --> 00:04:32,800 Speaker 1: staff and agents, you know, how many people are we 83 00:04:32,839 --> 00:04:35,599 Speaker 1: going to have inside each office and what are we 84 00:04:35,680 --> 00:04:38,080 Speaker 1: going to be doing, and what kind of recommendations are 85 00:04:38,080 --> 00:04:40,400 Speaker 1: we going to be asking you know, everybody. You know, 86 00:04:40,440 --> 00:04:42,839 Speaker 1: we're certainly gonna ask everybody that's sick or any sort 87 00:04:42,880 --> 00:04:45,520 Speaker 1: of symptoms to stay home. You know, back in the day, 88 00:04:45,560 --> 00:04:47,599 Speaker 1: we used to say come to work, don't be uh, 89 00:04:47,920 --> 00:04:50,080 Speaker 1: you know, don't be as cissy, you know, get to work. 90 00:04:50,120 --> 00:04:52,440 Speaker 1: Now it's you know, you have you know, if you 91 00:04:52,440 --> 00:04:56,880 Speaker 1: have an ingrown tonil stay home. Ye. What I find 92 00:04:56,960 --> 00:05:00,400 Speaker 1: interesting is everybody's pent up in their own homes right now, 93 00:05:00,480 --> 00:05:03,359 Speaker 1: and and part of me is wondering if once the 94 00:05:03,400 --> 00:05:06,839 Speaker 1: restrictions are lifted, everyone's gonna want to jump out, do 95 00:05:07,000 --> 00:05:09,440 Speaker 1: work on their home, you know, invest in a in 96 00:05:09,480 --> 00:05:12,520 Speaker 1: a new property, or you know, they're sick of I've 97 00:05:12,560 --> 00:05:14,560 Speaker 1: been in my place and I'm looking at the floors. 98 00:05:14,560 --> 00:05:18,919 Speaker 1: They're driving me insane, you know. But I'm wondering, you know, 99 00:05:19,040 --> 00:05:21,200 Speaker 1: if if that's going to factor into some of the 100 00:05:21,240 --> 00:05:26,080 Speaker 1: economic uh rebound or economic comeback, as as folks are 101 00:05:26,080 --> 00:05:29,279 Speaker 1: already starting to refer to it as I think for 102 00:05:29,440 --> 00:05:33,200 Speaker 1: sure we have all of our agents have been calling 103 00:05:33,240 --> 00:05:36,640 Speaker 1: all of their clients and just really asking quite honestly, 104 00:05:36,720 --> 00:05:38,640 Speaker 1: you know, if they're happy with their home, and you know, 105 00:05:38,880 --> 00:05:40,720 Speaker 1: they'd like to change their home, if they's a place 106 00:05:40,760 --> 00:05:44,200 Speaker 1: where they'd like to you know, stay, and uh, you 107 00:05:44,200 --> 00:05:47,080 Speaker 1: know you people have either really fallen in love with 108 00:05:47,120 --> 00:05:50,400 Speaker 1: their homes or have said to us, man, I really 109 00:05:50,440 --> 00:05:52,760 Speaker 1: wish I made that move that I you know, I 110 00:05:52,839 --> 00:05:56,080 Speaker 1: was cheap about or didn't do, or I've been renting. 111 00:05:56,440 --> 00:05:58,159 Speaker 1: You're also going to see a huge change in the 112 00:05:58,200 --> 00:06:00,440 Speaker 1: millennial and the behavior of that. You know, all of 113 00:06:00,480 --> 00:06:03,520 Speaker 1: these millennials that you know, we're renting and uber ring 114 00:06:03,600 --> 00:06:06,000 Speaker 1: and it was all about just being mobile. I I 115 00:06:06,480 --> 00:06:09,080 Speaker 1: think have really you know, sharing a kitchen and sharing 116 00:06:09,120 --> 00:06:11,200 Speaker 1: a living room and you know, the micro living. I 117 00:06:11,279 --> 00:06:13,680 Speaker 1: definitely think we're going to start seeing a big difference 118 00:06:13,680 --> 00:06:16,760 Speaker 1: and change in that, you know, where that human behavior 119 00:06:16,880 --> 00:06:18,760 Speaker 1: is changing. So I think the way of the future 120 00:06:18,880 --> 00:06:21,520 Speaker 1: is going to change as well, because you're you're you're 121 00:06:21,640 --> 00:06:24,760 Speaker 1: jumping from one generation to the next generation who has 122 00:06:24,800 --> 00:06:26,680 Speaker 1: never seen anything like this, And I think we're going 123 00:06:26,720 --> 00:06:30,240 Speaker 1: to see a huge difference in the behavior of that generation. 124 00:06:30,440 --> 00:06:32,560 Speaker 1: Maricio Yumanski is on the line. He's the founder and 125 00:06:32,640 --> 00:06:35,360 Speaker 1: CEO of The Agency, a full service luxury real estate 126 00:06:35,400 --> 00:06:38,479 Speaker 1: and brokerage and lifestyle company. Maricio, you know you talk 127 00:06:38,560 --> 00:06:42,360 Speaker 1: about the different generational gaps or gap and how that's 128 00:06:42,400 --> 00:06:45,279 Speaker 1: impacting the economy. You know, I'm struck by this because 129 00:06:45,720 --> 00:06:49,840 Speaker 1: especially from the last downturn that we had more than 130 00:06:49,880 --> 00:06:52,400 Speaker 1: a decade ago in two thousand and eight, and these 131 00:06:52,480 --> 00:06:54,440 Speaker 1: I mean, you can't compare two thousand and eight to 132 00:06:54,520 --> 00:06:57,680 Speaker 1: the pandemic downturn that we're in right now. And yet 133 00:06:57,839 --> 00:07:00,480 Speaker 1: I'm curious, you know, I'm gonna ask you to compare. 134 00:07:00,520 --> 00:07:03,599 Speaker 1: I mean, can you compare the housing crisis right now 135 00:07:03,839 --> 00:07:06,280 Speaker 1: so what we saw in two thousand and eight or 136 00:07:06,279 --> 00:07:10,760 Speaker 1: are they two entirely different beasts? Well, it's too early 137 00:07:10,800 --> 00:07:12,920 Speaker 1: to tell, but I can tell you from what the 138 00:07:12,960 --> 00:07:15,840 Speaker 1: information that we have gathered and that we know today, 139 00:07:16,000 --> 00:07:19,560 Speaker 1: we can certainly make certain assumptions. In two thousand and eight, 140 00:07:19,600 --> 00:07:22,960 Speaker 1: for the generality speaking, we saw a proximately a thirty 141 00:07:22,960 --> 00:07:26,360 Speaker 1: five percent drop in pricing, and you know, somewhere around 142 00:07:26,400 --> 00:07:31,000 Speaker 1: a thirty to thirty five percent drop in volume. Okay, Uh, 143 00:07:31,280 --> 00:07:33,480 Speaker 1: there was a banking crisis, and but yet you know, 144 00:07:33,560 --> 00:07:35,800 Speaker 1: things continue to move and all of you know, and 145 00:07:35,840 --> 00:07:40,720 Speaker 1: there was continued volume occurring showings. Showings were down only 146 00:07:40,760 --> 00:07:44,840 Speaker 1: about and showings is a critical aspect of understanding what 147 00:07:45,280 --> 00:07:47,920 Speaker 1: the future is going to look like because without showings, 148 00:07:47,960 --> 00:07:51,480 Speaker 1: we can't go into pending es grows. So today, from 149 00:07:51,480 --> 00:07:54,600 Speaker 1: a price perspective, there's still a lot of confusion in 150 00:07:54,720 --> 00:07:57,360 Speaker 1: terms of how much the housing markets gonna get hit 151 00:07:57,480 --> 00:08:01,520 Speaker 1: from from UH reduction in pricing. What I can tell 152 00:08:01,560 --> 00:08:05,920 Speaker 1: you is that ground zero for showings is January one 153 00:08:06,040 --> 00:08:09,200 Speaker 1: of every year. That's ground zero. That's the slowest showing 154 00:08:09,320 --> 00:08:14,200 Speaker 1: date of the year every year. UH these showings after 155 00:08:14,320 --> 00:08:18,360 Speaker 1: March twelve. The showing activity after March twelve from ground 156 00:08:18,440 --> 00:08:22,720 Speaker 1: zero from January one was down. Okay, so from the 157 00:08:22,720 --> 00:08:26,080 Speaker 1: slowest day of the year, we're down forty percent. As 158 00:08:26,160 --> 00:08:29,520 Speaker 1: of yesterday, we are back in the country. This is 159 00:08:29,560 --> 00:08:33,080 Speaker 1: a country a general statistic. We are back to ground 160 00:08:33,160 --> 00:08:37,720 Speaker 1: zero January one numbers. So we're starting to see an 161 00:08:37,840 --> 00:08:41,280 Speaker 1: uptick of showing activity. We're starting to see people come out, 162 00:08:41,880 --> 00:08:45,000 Speaker 1: We're starting to see a floor of volume. We saw 163 00:08:45,760 --> 00:08:49,680 Speaker 1: week over week in terms of volume Uh. Generally speaking, again, 164 00:08:50,000 --> 00:08:54,760 Speaker 1: you know, the nation UH saw approximately a seventy seventy 165 00:08:54,840 --> 00:08:58,920 Speaker 1: five percent drop uh two weeks ago week over week 166 00:08:59,080 --> 00:09:06,960 Speaker 1: versus the twenty nineteen last week we saw drop between 167 00:09:09,360 --> 00:09:12,360 Speaker 1: and this week we're expecting a much a catch up 168 00:09:12,800 --> 00:09:15,600 Speaker 1: on that. So we're starting to see the nation in 169 00:09:15,600 --> 00:09:19,559 Speaker 1: the housing UH come out of this tremendous volume. Recession 170 00:09:20,040 --> 00:09:23,320 Speaker 1: pricing is still impossible to tell. Uh, there's a lot 171 00:09:23,400 --> 00:09:27,960 Speaker 1: of conversations, certainly East Coast New York. There's big conversations 172 00:09:28,000 --> 00:09:31,240 Speaker 1: that we're gonna see a huge hit Sticking with housing 173 00:09:31,840 --> 00:09:34,360 Speaker 1: a guest first time on the program. Hopefully you'll come back, 174 00:09:34,440 --> 00:09:36,959 Speaker 1: Mauriceo to break down. We we don't talk enough about 175 00:09:36,960 --> 00:09:39,480 Speaker 1: housing on the show, and Uh, I want to make 176 00:09:39,520 --> 00:09:42,280 Speaker 1: sure that we do that. Mauricio Yamanski. He's founder and 177 00:09:42,400 --> 00:09:45,320 Speaker 1: CEO of the Agency, which is a full service luxury 178 00:09:45,400 --> 00:09:48,840 Speaker 1: real estate brokerage and lifestyle company. And you know before 179 00:09:48,880 --> 00:09:51,080 Speaker 1: the break, I mean you were you were sounding optimistic. 180 00:09:51,160 --> 00:09:53,600 Speaker 1: But on a day like this, when the unemployment rate 181 00:09:53,679 --> 00:09:58,200 Speaker 1: spikes to a historic high post depression, we need some optimism, Mauricio, 182 00:10:00,000 --> 00:10:02,360 Speaker 1: I'm here to bring it for you. Kevin and so 183 00:10:02,480 --> 00:10:03,960 Speaker 1: I just before I let you go, I know that 184 00:10:03,960 --> 00:10:07,080 Speaker 1: you're deeply involved with an incredible organization that I wanted 185 00:10:07,080 --> 00:10:08,360 Speaker 1: to ask you about, and I didn't want you to 186 00:10:08,360 --> 00:10:11,400 Speaker 1: get cut off by the break. And you're a longtime 187 00:10:11,440 --> 00:10:15,560 Speaker 1: supporter of give Back, which helps families in need, and 188 00:10:15,600 --> 00:10:18,280 Speaker 1: we know right now especially there are a lot of 189 00:10:18,280 --> 00:10:21,079 Speaker 1: people out there, a lot of people too many hurting. 190 00:10:21,160 --> 00:10:25,120 Speaker 1: Tell us what you guys are doing for Project and Back. Well, 191 00:10:25,160 --> 00:10:28,080 Speaker 1: we've been a great partner with give Back Homes, and 192 00:10:28,280 --> 00:10:31,000 Speaker 1: what we do, generally speaking is we all of our 193 00:10:31,080 --> 00:10:34,480 Speaker 1: agents give a portion of their commission to give Back 194 00:10:34,520 --> 00:10:37,680 Speaker 1: Homes and we've in essence raised money to build homes 195 00:10:37,760 --> 00:10:40,640 Speaker 1: for the needy, primarily through Habitactic for Humanity. But ever 196 00:10:40,679 --> 00:10:44,240 Speaker 1: since COVID, we've changed and the resources of funds, and 197 00:10:44,280 --> 00:10:47,000 Speaker 1: we moved those funds to different places like the World 198 00:10:47,040 --> 00:10:50,240 Speaker 1: Central Kitchens, which delivers fresh meals to families in need, 199 00:10:50,640 --> 00:10:54,280 Speaker 1: Direct Relief, which provides essential medical items and pp equipment 200 00:10:54,320 --> 00:10:57,679 Speaker 1: to health workers, and to the world Health organizations. So 201 00:10:57,720 --> 00:11:00,560 Speaker 1: we've just transferred our funds to you know, really try 202 00:11:00,600 --> 00:11:04,600 Speaker 1: to help COVID nineteen good stuff. I appreciate your time. 203 00:11:04,640 --> 00:11:08,320 Speaker 1: Maricio Yumanski founder and CEO of the agency, appreciate you 204 00:11:08,400 --> 00:11:11,400 Speaker 1: coming on to breakdown everything in the housing