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Berkshire Hathaway’s Ellie Johnson on the Luxury Market’s ‘Period of Adjustment’

Plus, the five Manhattan neighborhoods she thinks are most promising for investors

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Ellie Johnson, president of Berkshire Hathaway HomeServices New York Properties, said Tribeca and SoHo are areas has the best resale value.

Composite: Tony Shi Photography / Getty Images; Alija / Getty Images
Ellie Johnson, president of Berkshire Hathaway HomeServices New York Properties, said Tribeca and SoHo are areas has the best resale value.
Composite: Tony Shi Photography / Getty Images; Alija / Getty Images

Ellie Johnson, president of Berkshire Hathaway HomeServices New York Properties, launched her company’s first New York City office at the beginning of 2017. She joined Berkshire Hathaway after 11 years at Sotheby’s International Realty, where she specialized in the Upper East Side of Manhattan.

She relocated from San Francisco to New York 17 years ago.

We caught up with Ms. Johnson, 60, to discuss what she sees as the future for luxury real estate, her favorite nook in her house, and more.

Mansion Global: Describe your dream property.

Ellie Johnson: A beautifully renovated townhouse on the Upper East Side. I live in a townhome, and it’s just a beautiful lifestyle—affords you a lot of interior space, outdoor space and privacy.

MG: Do you have a real estate property that got away?

EJ: Not really, I’ve bought everything that I really wanted.

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MG: What does luxury mean to you?

EJ: I would define it as quality of life. For me, it’s more about comfort than any sort of look... and being able to enjoy your life to its fullest capacity.

MG: What area do you think is the next hub for luxury properties?

EJ: Overall, any coastal community. Water is such a limited resource, and people are becoming more and more aware of that. Coastal communities are becoming even more in demand.

Being near the water is important, whether you’re in New York, or Europe, or in the Middle East, where you can make your own. All it requires is money to create your own oasis.

MG: Where are the best luxury homes in the world and why?

EJ: They’re everywhere. You can have an incredible, beautiful villa in Italy, or a palazzo in Portugal, or a penthouse or townhouse in New York City. They’re everywhere. Luxury is truly in the eye of the beholder.

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MG: What’s your favorite part of your home?

EJ: When I used to sell real estate, I’d ask clients: "Where is the heart of your home?"

For me, it’s a little corner, where I do prayer or meditation or read. It’s in my living room next to the fireplace. It’s a beautiful corner, with an old, oversized leather chair.

MG: What best describes the theme to your home and why?

EJ: It’s somewhat eclectic. There are stacks of books, and bookshelves. And yet, I’m very neat and organized. It’s a formal/casual lifestyle. My bedroom is very soothing and romantic, my living/dining room are very comfortable. But I can set it up for a formal event or make it more casual by moving furniture around or changing the decor.

MG: What’s the most valuable thing in your home?

EJ: The people that live in it. From an object perspective, a family portrait. It’s a photograph on canvas.

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MG: What’s the most valuable amenity to have in a home right now?

EJ: If you are a good cook or a chef, you probably want the most high-tech stove. If you’re not into that, maybe you’re into having an incredible closet, where you can store your handbags, your shoes and beautiful clothing.

If you’re a techy person, it’s about having a smart house, where you can have Nest or Netflix with the touch of a button.

MG: What’s your best piece of real estate advice?

EJ: Even though it’s a financial investment, if it’s for your personal use, buy with the heart. Visualize yourself in the home and in the space.

And obviously, location, location, location. It’s an old term but can never be overused. Buy the lowest priced home in the best neighborhood you can live in.

MG: What’s going on in the news that will have the biggest impact on the luxury real estate market?

EJ: Our business is cyclical, and there’s always a buyer’s market and a seller’s market, and they change.

For the luxury market, wealth around the world continues to grow. Markets need to regulate and we’re going through a transition. The luxury market is going through a period of adjustment, for sure,  but I don’t expect it to disappear anytime soon.

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MG: What is the best area now for investing in luxury properties?

EJ: Some people might say London, because you can get incredible value because of Brexit. Some people might say Houston, Texas, some might say Atlanta, cause there’s a lot of migration from California to other parts of the country.

But after being here for 17 years, I think in terms of long-term stability, I’d say Manhattan.

MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?

EJ: A prime resale, simply because I like pre-war buildings and their architecture.

MG: What area currently has the best resale value?

EJ: Tribeca, SoHo, or the West Village. It’s crazy what those places are commanding. The people who were the pioneers in Tribeca, who held onto their investments are seeing major returns. For the future, though, I’d go to Murray Hill and Kips Bay, Hudson Yards, Flatiron and NoMad.

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