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
“So you may be able to buy , but do you want to if you have to worry about your job security, your child’s education and whether you will be robbed on your way to the subway.”
If that comes to pass here–which it may–it will also be true all over. It is a national recession, not a New York one.
RE prices will come down some more over the next couple of years (I predict 40% off the highs). Unfortunately this comes at a time when the city’s economy sucks. Therefore if you waited on the sidelines and you want to buy in the near future, you may be buying into a different city than say from 2007. Schools, amenities and transportation will all be worse (how bad who knows). With no new jobs and huge defecits, New York will be a different place. So you may be able to buy , but do you want to if you have to worry about your job security, your child’s education and whether you will be robbed on your way to the subway.
Someone doesn’t understand rates of return. The math is pretty simple.
WARNING: The referenced article is a paid advertisement. Reality does not necessarily support the sponsor’s (Corcoran’s/Prudential Douglas Elliman’s) claims.
***Bid half off peak comps***
Teachers, firefighters, social workers, train conductors, utility workers, hospital workers and others whose jobs do not revolve around or near the financial industry do not have a need to live near Manhattan. So, I don’t think this news is encouraging for the owners of brownstones. The “meat and potatoes” buyers that I know are not looking for homes in brownstone Brooklyn or East Harlem. Many of them are looking in areas that Brownstoners would consider “fringe” or “way-out.”
I don’t know if Prodigal Son and misterbubble would qualify as “meat and potatoes” but either way they would both probably do better to wait a while because the prices in the areas that they are considering will no doubt come down. A NY Times article this weekend predicts that NYC will lose close to 200,000 jobs most of which are in the financial industry, so perhaps there will be a deal or two out there for them.
The average annualized rate of return for the S&P 500 from Jan 1, 1998 to Dec 31, 2008 was 1.49%. Real estate beat that and real estate has done far better than stocks from the point that both markets peaked.
Those facts cannot be argued. This is why I work in the stock market but have most of my personal assets in real estate.
Picking bottoms in either market is next to impossible but your house doesn’t go anywhere close to zero.
“What, I think the negative returns in the stock market are likely to drive people TO a real estate purchase as a means of preservation of capital.”
When the value of the purchased asset goes down in price, right Dave! If you have this idiot managing your money,, please for GOD sake get away from him!
The What
Someday this war is gonna end…
“The Average Asshat his seen a negative return on money and with inflation eroding his/her purchasing power I can’t see anyone wanting to buy in this market.”
What, I think the negative returns in the stock market are likely to drive people TO a real estate purchase as a means of preservation of capital. Yes, there will be deflation for a short time here but we will return to some inflation in a year or so and that will help real estate prices.
“Yesterday’s cover story in the NYT real estate section was downright encouraging, didn’t you think?”
Nope…
“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.”
Prices are still in “Retarded Land” and where is the financing is coming from, Candy Land Funding? The Average Asshat his seen a negative return on money and with inflation eroding his/her purchasing power I can’t see anyone wanting to buy in this market.
““The meat-and-potatoes buyers are coming out right now,†said Kristina Leonetti, a broker at the Corcoran Group.”
Wow that’s credibility! A Broker at Corcoan! Yeah I going to buy right now…
“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?”
Yeah that’s reporting, like the Fulton St BID Brownstoner! A way to go.. Dumbass!
The What
Someday this war is gonna end…