Average Joes Giving Market a Heartbeat
Yesterday’s cover story in the NYT real estate section was downright encouraging, didn’t you think? The gist: There are a bunch of folks who have normal jobs with normal paychecks that have been patiently saving up in recent years as the real estate market zoomed beyond their reach who all of sudden are finding themselves…
Yesterday’s cover story in the NYT real estate section was downright encouraging, didn’t you think? The gist: There are a bunch of folks who have normal jobs with normal paychecks that have been patiently saving up in recent years as the real estate market zoomed beyond their reach who all of sudden are finding themselves in the position to buy sooner than they had imagined. And faced with the double-blessing of lower prices and lower interest rates, they are even able to afford bigger apartments than they thought. The meat-and-potatoes buyers are coming out right now, said Kristina Leonetti, a broker at the Corcoran Group. And you know what? They are out there actively looking (though maybe not in the Bronx). Confirming something that a senior member of a large brokerage firm told us last week, open houses have been well attended since the start of the new year. Any readers who fit this profile care to chime in?
For the Brave, the Moment Is Now [NY Times]
Photo by Amber Rhea on Flickr
Alsawo – the real estate market corrects very slowly for a bunch of reasons, and after it hits bottom it will not move up quickly. Wait as long as you still have patience.
I mean, really, I realize Brownstoner would have been remiss in not acknowledging this article, but every person who posts on this site – bulls and bears alike – is too smart to see a puff piece in the Sunday Times (supported by little more than one or two editorially selected anecdotes and wishful quotes by some Corcoran brokers) as being probative of anything. Give me a break.
I don’t think the city government will let New York go back to what it was in the 70s and 80s. Quite simply, they’ve realized that tourism is too valuable to the city, as is promoting it as a safe place to live. Budgets are going to be cut all over the place, I don’t doubt, but I think we’re going to continue to see a much, much stronger police presence than the city had during those decades.
I just don’t think we’re going to see a return to pushers, pimps, and prostitutes on every corner.
Prices simply haven’t fallen anywhere near enough for “meat and potatoes” buyers to be able to afford the neighborhoods we are all focused on. Prices in the past few years in Park Slope, Brooklyn Heights, BoCoCa, DUMBO and now even Fort Greene and Williamsburg only make sense when hundreds of thousands of Wall Streeters are making deep into the six and seven figures. Schoolteachers and firefighters simply don’t buy million dollar condos on their salaries. I am of the view that Wall Street has changed forever. This is not a cycle. There has been a permanent and massive reduction in payroll in New York City, and it will take a few years for the effects of that reduction to be fully reflected in NYC real estate prices. Right now there are still few buyers out there who are either optimistic or rich and dumb, so we are seeing greatly reduced volume at still reasonably high prices. It will take a lot more volume to clear the market, and that volume will only happen at much lower prices.
I agree that the New York Times has very little credibility when it comes to real estate (is it Jayson Blair’s new beat?).
daveinbedstuy, where are you from. I am a native new yorker and remember a time when crime was rampant and I’m not talking about the 70s, how about 1993. When 12 year olds are being mugged last week in brownstone brooklyn (read your local police blotter) this is not the glitzy New York that Seinfield, Friends and SATC promotes.
Shillstoner, My point is if this happens in New York and I agree it will happen in a lot of places. Will there be somewhere else to go. Are we headed back to the urban flight of 70s and 80s. Is everyone moving to Westchester and Long Island, like a generation ago did?
As quickly as New York got better over the last 10 years, it can go right back down. First it got too expensive to own a home, now it might be cheaper, but you have to pay $30K a year for private school.
Any guesses on how long the market will stay like this? I’d love to buy, but probably not for a year or so.
I’m not quite an “average joe” salary-wise – I make a bit too much to qualify, but my wife and I are certainly among those who’ve increased their open house viewing lately as prices have started to drop. We’re saving up and hope to get a decent deal somewhere by the end of this year.
I fit the meat-and-potatoes profile (first time buyer, looking in the $400s) but have been extremely discouraged by how little prices have fallen for 1-bedrooms. I’m looking to stay in BK Heights where I currently rent and am tired of brokers telling me that their 500 sq ft, $450K 1-br is ‘extremely well priced for the neighborhood.’ I continue going to open houses every week but with prices barely moving and most units needing a substantial amount of renovations which I don’t want to commit time or money to, I’ll just continue to attend open houses.
“whether you will be robbed on your way to the subway.”
This is the kind of crap that always adds credibility to your argument.