Bank Predicts NYC Market to Fall Another 40 Percent
If a certain bank analyst is to be believed, New York real estate has a long way to go still before reaching bottom. A Time article earlier this week cites a Deutsche Bank report predicting that housing prices in the New York metropolitan area will fall 40 percent from their March levels. The major driver…
If a certain bank analyst is to be believed, New York real estate has a long way to go still before reaching bottom. A Time article earlier this week cites a Deutsche Bank report predicting that housing prices in the New York metropolitan area will fall 40 percent from their March levels. The major driver of the bank’s estimate is an affordability index that shows New York is still relatively a very pricey place to shack up.
New York Home Prices Forecast to Drop 40% [Time]
Photo by tomodea
It may not have been textbook speculation, but it was speculation. Anyone who took out too big a loan on the premise the house price would go up, and thus cover their overlevered ass, was speculating; anyone who was given cheap credit on a liar loan was enabled by speculation by the bank, which thought they could bundle and trade the asset-backed security. The idea that speculation had nothing to do with the run up in Brooklyn housing prices is juvenile.
Granted Brooklyn is a different borough than in ’82. But we’re talking about a price spike that is, in its bulk, only a few years old. Is Cobble Hill four times nicer than it was in 1999? Three times nice than it was in ’02?
Dave I dub you Elstupido from here on
dave how is that peril?
The relevance is that Tokyo remains one of the most expensive cities in the world.
I also hear some of you morons stating that NYC home prices are going to drop below 600/700 psf, and I find the idea that NYC homes prices will drop to below that of Mumbai, India (at $851 psf) to be asinine.
Lets see minus 40-50% for nyc. Whats that say for the ghetto speculative properties which will take the biggest hit? 75%? Looking good over there Dibs! 😉
Hey elstupido dave here is a link
http://www.japaninc.com/files/images/mgz-77_subprime_real-estate-values.jpg
11217…I lived in Hong Kong from 1991 to 1994 and remember that property boom. Prices there were just going over $1,000 psf and then came down in the mid 90s. They are back above those high levels now, as you point out.
brickoven doesn’t know what he’s talking about.
Don’t worry 11217, your hole in the wall might still be worth $125K when its all said and done…
11217 what is the relevance?