How low can prices go?
Have home prices fallen 9 percent or 40 percent? Depends whether or not the real estate index you’re looking at includes subprime foreclosures or not. http://online.wsj.com/article/SB122722235538745845.html
Have home prices fallen 9 percent or 40 percent? Depends whether or not the real estate index you’re looking at includes subprime foreclosures or not.
http://online.wsj.com/article/SB122722235538745845.html
You hear of the Madoff Ponzi scheme? Well the housing scheme is a fotocopy of it. This is only the beginning of home prices falling in New York City.
Miss Muffet is looking to buy a brownstone. I am too. I am somewhat doubtful prices will come down more than 30 percent on brownstones in “prime” areas. (Though I don’t wish to buy one there anyway.) Could be nothing will drop below the 15 percent we’re seeing now.
My reasoning: Figure we stay in a down cycle for two or so more years. Figure a 10 to 15 percent discount for each period during that down cycle. But also figure available inventory will slow to a crawl while demand stays high.
OTOH, if we have an absolute economic catastrophe with the government going bankrupt (after bailing out Citibank, etc.) and no police and 30 percent or 60 percent unemployment…well, then of course prices will come down. But then Miss Muffet may decide she prefers another neighborhood!
BH76 – Why do you say “new condos — not what you want” – ? Is there something inherently wrong with new condos or are you suggesting they won’t hold their value? Or is it a matter of personal preference? Just curious, thanks!
BH76 – Lots of renting sounds great to me!
Miss Muffet: Get a grip. There will be 50% cuts but they will be on the new condos — not what you want. I am hardly bullish but mostly it will be only people who are forced to sell the kind of home you desire, 20-25% cut is more likely. If things get as bad as they may, there will simply me very little movement — lots of renting.
In NYC, prices have barely begun to fall – this is why it make no sense to buy right now unless you are getting a great deal from a seller who has accepted the new reality (most current sellers have yet to join these ranks)… Prices need to come down at least 25% to make sense, and I predict up to 50% cuts.
that was a great article I was just reading that..the premise doesn’t make sense to me though. How do you not factor in foreclosures? that will be the driving force behind pricing until they put a federal moratorium on foreclosures which already is in the works. Fannie and Freddie have already started for the holiday season.
http://online.wsj.com/article/SB122721715521945487.html?mod=testMod