Quote of the Day
Once we join the rest of the country in terms of accepting reality – we are by the way now falling under the same lending standards of income to debt ratios, and under the new appraisal requirements set forth in the lending crack-downs – we should see prices return to levels where they still should…
Once we join the rest of the country in terms of accepting reality – we are by the way now falling under the same lending standards of income to debt ratios, and under the new appraisal requirements set forth in the lending crack-downs – we should see prices return to levels where they still should be had the past 10 years of bizzaro world not happened. In 1-2 years (or less) wait and see if we don’t follow the rest of the country. I’m looking again at condos around Miami and they are around $100/psf – even less for anything that isn’t new construction. These same exact condos were in the $700-800 psf range just 2 years ago – I still have my old offering and information paperwork from when I was looking at the same units back then. One of the units that was asking $700,000, is now right at $100K with the seller kicking in closing costs. And we are talking prime neighborhoods. So sit back and watch. It’s not going to be pretty for sellers who overpaid, but will be great for families in our city who can move back in and not have to live 2 adults and 4 kids in a studio that they still can’t afford.
— by williamsburgguy in Toll Gets Serious About Selling at Northside Piers
Miami comps not relevant other than to say we are going south. Far more product overhang there, lower development costs and dependence on a much more limited albeit international market. NYC best apartment market in USA in many ways. You won’t see 100/foot here, units will just be rented.
I was just in Miami. Miami comparisons are ridiculous, however you want to argue this. I was with people from out west there for the first time and everyone agreed it sucked. I’d take sunset park any day.
Anyway, there was a sign on a crappy looking building somewhere near the port, (not south beach) that said “studios from the low 200s”. It’s not THAT cheap.
Williamsburgguy, how can it “be great for families in our city who can move back in and not have to live 2 adults and 4 kids in a studio that they still can’t afford?” in an economic collapse? I’m seriously wondering whom this depression will benefit even if prices go down 90%. The lower the income, the harder people are gonna be hit, it seems to me.
You’ll have to lead.
“I didn’t realize there was such a thing when referring to Miami proper. It all looked like a pit to me.” and “Has anyone actually BEEN to Miami? I wouldn’t live there if you paid ME 700,000k!”
These have to be my favorite ironic embedded quotes of the day. Have you ever been to some of our own neighborhoods here in Brooklyn or Queens where the asking prices are still in the $700/psf ranges? I couldn’t even begin to count how many individual streets and neighborhoods right around me here in Williamsburg would qualify for those 2 statements, yet here we are, expecting the world to pay $700 or more PSF then trying to rationalize that NYC is the single city in the whole country that will not be affected the same way that all other cities who also said they would not be affected. Sure, it’s taking a little longer to set in, but we expected that. To hide your head in the sand and repeat “there’s no place like home there’s no place like home” over and over won’t make it so. There just isn’t the income here to support every single house or craphole apartment being in the 6 figures. Sure BH and PS might not fall as far or as fast – Beverly HIlls is still holding its own I hear. However, these old woodies that I live in in the Burg and most of your gut-reno required brownstones are nothing special so therefore they will fall to a nothing special price. Denial isn’t just another river apparently.
Waltz with me, ditto?
You know what I love? Back when the market was soaring, some people observed that we were in a bubble that couldn;t possibly last. Others shouted back that “it’s different this time” this is not a bubble, but a new economy caused by blah blah blah. Now that the market is in the tank, and some people are observing that it’s only a matter of time before credit markets open back up and the markets correct themsleves, it seems like there are tons of people who are shouting back “it’s different this time” this downturn is not your typical recession but a shift in paradigm blah blah blah.
When things are good, some people can’t imagine that they’ll ever be bad, and when things are bad, some people can never imagine that they’ll ever be good again.
panda10 – understood, re: SF. But it’s still far more expensive than most of the rest of the country, even though it’s less expensive than it used to be.
Everything is dropping, and I’m in now way denying that. I’m *hoping* for it, as it’s to my benefit. I’d be thrilled if I could buy what I want, in the neighborhood that I want, for $100k
I largely agree with what Xander posted, though. I’m not sure where prices are going to stabilize, but when they do, prudent buyers will jump back in.
I don’t believe they’re going to stabilize at $100k for what used to be $700k. I think it’ll be higher than that. But you never do know.
Well the string quartet are putting on a jolly good show.