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
I have one chart here in front of me right now…Tokyo Office rents…certainly representative of the market. I will look for a few more.
Rents were Y22,000 per tsubo in 1986 and dropped to Y17,500 in 2005. They went up to Y23,000 in 2008 and are now back at Y22,000.
I will continue to educate you at your peril.
Serious panic on the virtual streets of Brownstowner 😉
For Brickover:
****
World’s priciest cities to own a home in
Chavon Sutton, Forbes | February 10, 2009
Those living in Monte Carlo may enjoy the Cote d’Azur’s beaches, glamorous nightlife and status as a tax haven, but they pay for it.
For the second consecutive year, the resort area tops a list of the world’s most expensive housing markets, boasting average prices of $4,420 per square foot.
“Monte Carlo is a city of the rich, small and concentrated,” says Matthew Montagu-Pollock, publisher of Globalpropertyguide.com, the online real estate research firm that released the report Monday. “The primary reasons for such high prices are related to a shortage of space and tax havens.”
Moscow ($1,937 per square foot) and London ($1,928 per square foot) ranked second and third. Moscow’s one-spot jump to the top three was propelled by strong economic growth, partly a result of recent high oil prices, and a rise in residential real estate prices in the first three quarters of the year. Last year, the country experienced gross domestic product growth of 6 per cent, according to the CIA’s World Factbook.
A surprising turn was New York’s drop to No. 6, from No. 2, as growth in Asian markets pushed Hong Kong and Tokyo to the top five. Residential apartment prices in Hong Kong and Tokyo were as high as $1,373 and $1,103 per square foot, respectively, in last year’s survey. In New York, the average price per square foot was $1,384.1.
Mumbai, India, rounds out the top 10, with prices averaging $851 per square feet.
Such high property values are surprising during this global economic crisis, but they are a sign of historically high real wealth and global growth.
“Even in these trying economic times, there is still tremendous wealth out there,” says Nikki Field, senior vice president of Sotheby’s International in New York. What drove down New York’s rank was, in part, a “hesitancy for conspicuous consumption. The need and ability still exists to buy at the upper tier, but people are scared to publicly spend.”
the point is that it is still off 70 percent!
peaked in 1990
Tokyo prices peaked in the early nineties, my friend. Try to at least get historical factual data correct.
I was in Tokyo 6 weeks ago the prices there are still 70 percent of the highs of the 80’s. Did you know that?
I make money from people involved in things they dont understand all day long. You go drink youre kool aid and I am going to have my turkey club
Posted by: brickoven at June 18, 2009 12:01 PM
If you made so much money you wouldn’t be having a turkey club. ROTFLMMFAO.
Do you have any clue what prices are psf in either Tokyo or Hong Kong? I bet not. Have you ever even been out of the country???
“I’d like to see rebuttal of Boerum Hill’s observations.”
Dave — no rebuttal because he is right.
The question is, how much of that improvement will be lost in the next few years?
Not all of it. Probably not even 25% of it. But some of it.
Time will tell. Maybe there will be no losses and things will continue to improve. That would make me happy, but cutbacks in mass transit and police are bad signs.