Housing Bubble Starting to Lose Air?
We don’t usually get around to the Op Ed page ’til later in the day so we missed Krugman’s piece yesterday on everybody’s favorite topic, the housing bubble. Among the signs he points to that the bubble is already losing air are: The bubble doesn’t burst with a bang–inventory builds as sellers hold out for…
We don’t usually get around to the Op Ed page ’til later in the day so we missed Krugman’s piece yesterday on everybody’s favorite topic, the housing bubble. Among the signs he points to that the bubble is already losing air are:
Is there any hard evidence that properties in New York are sitting on the market for longer?
That Hissing Sound [NY Times]
I think it’s time to put this thread down…
For the record:
I stated that my husband and I might move elsewhere. I also stated that we might move to another neighborhood in NYC. I never wrote about why we might leave NYC, which neighborhood I currently reside in, or my opinions of potential neighborhoods. Don’t assume you know what I’m thinking.
I do not mind being a landlord. My husband *does* mind. Unless I divorce him, he gets an equal say. Such is life.
Ah well.
JoshK, the issue is not necessarily “choice” addresses. We’d all like a pre-war 15 bedroom mansion on Park Avenue but we’re clearly not all going to have it.
The issue now is that even in the less “choice” areas, prices are out of control.
You may not be aware, but this whole bidding war/bid way over asking thing is a fairly recent phenomenon. Sure, it’s happened before, but never quite at this level. Many older people I’ve talked to are shocked – they bought their houses my seeing the place, making the offer and most times, getting it. First offer gets it was not uncommon (provided the first offer was asking or a good offer). Moreover, people’s asking prices were a “shoot for the highest” thing. Now, you can say all you want that people are shooting for the moon, but in reality, they are fully expecting to get their insane prices.
I think linus sums up the contention here well. hell if we all bought in the 70’s we could have bought a few houses for a $1 each. I mean the story can go on and on. people who got in when they could good for them and people who didn’t just have to be that much more resourceful or wait and save… prices cannot indefinitely rise. they will hault probably come down a bit and you just have to be ready to jump- also people have lived entire lives renting in NYC- it was/is what most people expect to do when they decide to live in the city.
At least you are stuck between the camps Linus and realize that you’re lucky – because frankly, I think many of the people who bought property that has gone up in value think they’re some kind of blessed financialy geniuses!
I personally couldn’t have bought 5 years ago – I was still in school. I think the same way – if I was 5 years older, I’d be in better shape. Nevertheless, I still think that there is an awful lot of nastiness that goes on (you not included) and it seems that some people are HAPPY for others’ misfortunes or what have you.
Anon 9:42 — I’m thinking of New Stoner, who bought a multifamily in a less-gentrified neighborhood, or Anon 9:56 just below. Or for that matter me — my first co-op was way smaller than I wanted, and I like my tenants and all, but it’s not like I became a landlord for the joy of it. [I’ll be the first to admit, though, that she probably couldn’t afford my block now and that I was lucky to benefit from buying at a good time.]
I guess I feel in between the two camps here. On the one hand I know I’m lucky to have got on the property ladder when I did, and it sucks for people who didn’t. But on the other I have plenty of people I could envy — baby boomers, for instance. If I had been born ten, even five years earlier, I could be living in a freaking mansion by Prospect Park, instead of in a smallish townhouse much farther down the Slope. But does the fact that life was unfair to me mean that there is something wrong with the world, or that New York is losing its soul? I don’t think so.
Which is why I give kudos to Wannabe, who does complain about not wanting to buy but seems to acknowledge that part of that has to do with her own choices and willingness (or not) to compromise.
Anon at 9:56, you make a good point that NativeGal and others did give good advice, and you seem like one of those people who took such advice yourself. But I think there was some rudeness from others. It often seems in discussions like this that there are some owners/haves standing on the “you can’t buy, I made a ton on my condo, haha” pedestal. It just seems mean and uncalled for.
I think that the “you should move” comments are being being misrepresented as rude when, in fact, they contain some sound advice. Nativegal (8/9 8:52) and Anonymous (8/9 9:36) both made exellent points. There is a lot of good advice on this board and it is being dismissed. Also, it’s true that there a lot of options for ownership in NYC and that being flexible about where to live is vital to the process. By looking at properties that are too expensive for one’s budget, valuable time is wasted. My wife and I bought a co-op after four years of saving. We gave up virtually everything we enjoyed (vacations, dinners out, movies, even video rentals), but it was worth it, because we now own something. Some of our preferred areas were simply beyond our means, so we accepted it and moved on. IMO, owning something in a boring neighborhood is better than renting in a hip one.
Linus, I don’t disagree with you that maybe Wannabe had some qualifications (to which she is entitled), but the point is that some of the remarks just sounded bad – not sympathetic, but Bugaboo Frog level-elitist.
And from the comments on this board, it hardly sounds like the “gentrifiers” are really making concessions, so to speak. I doubt anyone paying 800Gs or more for a brownstone in Brooklyn is being “forced” to do so for “affordable” housing.