Quote of the Day
Doesn’t it seem like prices have only dropped on places you don’t want? Or, the places you want haven’t seen price drops anywhere near what you expect? It’s possible that the desirable places will never be “cheap”. Barring divorce, death, relocation, unemployment, etc… the people who own these “better” places may just decide to stay…
Doesn’t it seem like prices have only dropped on places you don’t want? Or, the places you want haven’t seen price drops anywhere near what you expect? It’s possible that the desirable places will never be “cheap”. Barring divorce, death, relocation, unemployment, etc… the people who own these “better” places may just decide to stay where they are. Of course, there will always be crap for sale, but in NYC, even that’s expensive. Still. There may be “buyers” renting for 10+ years looking for a good deal.
— by broadwayron in Cheap Today, Cheaper Tomorrow?
“Prices just went up too far, too fast, and now must come down across the board.”
What is your definition of “now”?
Who determines how far prices “must” drop? How do you even know that the majority of sellers even need to sell? Maybe the majority of them are just screwing with potential buyers to piss them off.
williamsburgguy — war, plague, loss of humor – all sound like legitimate reasons for fear. but real estate? come on! let’s all get a grip. let’s take a deep breath, and then try to exhale some positive thinking for a change. one… deep breath in… hold… and out… two… deep breath in…
and for “The What”… you sound just like “The What The Heck R U Going On About” – what’s your runmour, man?
I am certainly seeing prices coming down on just the kinds of properties I *am* interested in. If you follow listings closely as I do, you will see major cuts just starting to happen even in prime neighborhoods. I’ve already mentioned on other days 300-400K chops within the last few weeks on very prime PS townhouses – hardly “new crap”. This really is just the beginning. Yes, prime neighborhoods will weather the storm a bit better (they generally do) but they are far from immune. Prices just went up too far, too fast, and now must come down across the board.
cwbeucheler – not everything new is crap at all. you can always bring an inspector in. if you find a good deal, do this. decorating is relatively inexpensive and that, along with built-ins and storage can transform a boring space.
interest rates are low but when the rest of world (China) stops buying our debt (Treasury, Fannie & Freddie crap), interest rates will have to rise … when interest rise, home prices will fall no matter how good the hood is!
no new taxes , no spending cuts, but like magic we have $700,000,000,000 to bailout wallstreet
“ROTW uses the same language as the unscrupulous “block-buster” real-estate agents who operated so effectively in NYC during the “white flight” days of the 60’s. They peddled fear, and bought homes on the cheap from those who fled. He fails to understand that this is a different era. He may be trying to do the same thing, as there are runmours that he is a real estate agent. Pay no attention to him.”
The What
Someday this war is gonna end…
blight be gone! real estate is local right?
there was an inflationary aspect to many parts of this economy as a result of general affluance.
I agree that good neighborhoods will weather the downturn better than bad ones. However, price increases of 20% per year werent sustainable. Too many houses doubled in price between 2003 and 2007.
If you go back to the data from 2000 as a basis, then add on appreciation of 3-10% per year, it seems like you have a logical valuation in traditionally solid neighborhoods.
Some neighborhoods deserve a premium based upon a changes within the neighborhood in the last 8 years. Ft Green, Dumbo, Crown Heights North, ditmas park, and Prospect Heights come to mind as neighborhoods that are far more desirable now than they used to be.
As an extreme example, the houses on the same block as 474 Greene gained at least 5% over the weekend due to the fire of a neighborhood blight.
“Just look at where the foreclosures are happening…”
The boom started from the good areas and worked its way to the bad ones. The bust will do the reverse. It’s a boomerang.