City Real Estate Market Rebounds Sharply in January
The lower prices and negative psychology that dominated the New York City real estate market last year went “poof!” last month as the bonus-rich and others showed a renewed appetite for residential properties of all shapes and asking prices. Overall, both prices and the number of signed contracts rose more than 10% year-over-year in January….
The lower prices and negative psychology that dominated the New York City real estate market last year went “poof!” last month as the bonus-rich and others showed a renewed appetite for residential properties of all shapes and asking prices. Overall, both prices and the number of signed contracts rose more than 10% year-over-year in January. [Buyers’] psychology has changed, said Frederick W. Peters, the president of the Warburg Realty Partnership. For almost two years, they’ve been scared that the market would plummet and they’d end up like fools who paid too much. Steven L. James, director of Manhattan sales for Prudential Douglas Elliman, calls it a “cautious exuberance.” One example: A park slope brownstone asking $2,475,000 that sold in a day. And in a further sign of strength, there is lots of demand for apartments and houses at all points in the price spectrum, not just the high end, according to Jonathan Miller of Miller Samuel.
Housing Market Heats Up Again in New York City [NY Times]
Photo by John Marshall Mantel for The New York Times
“NYC is still the capital of the world”
Quite an understatement–it’s actually the center of the universe 🙂
the bear? I dont get it anon 12:30
it’s so funny the amount of false assumptions on this thread based on speculations and forcasts… But the last time I checked God stopped making land a while ago and NYC is still the capital of the world.
I got a bonus once. It was a big bottle of Italian wine; somebody in advertising dept. got it from an agency and didn’t want it. Oh, and I also got some weird Norwegian cheese, about a half-pound brick of it, from a Scandinavian tourism flack. Spouse got a bonus once: a spiral-sliced ham, from the manager of his little TV station in Oklahoma when he was 21.
I guess it’s nice to work on Wall Street. Life-altering, market-altering bonuses (boni?)…how about that?
Do any of you REALLY know what you are talking about?
Just like the underlying venture type this website stems from…
Its ALL Speculation
subprime mortgage credit quality is a leading indicator. that area is just starting to plummet with much more pain to come (see hsbc and new century). another indicator will be when the manhattan luxury condos sold to out-of-towners market collapses (see wsj article from friday before last for more on this trend). despite wishful thinking by real estate sector, this is a temporary and seasonal boost. expect a return to “stabilization” soon. with so much inventory overhang and a slowing economy, the fundamentals just aren’t there.
Anon 12:01 (or anyone else) please explain the relationship between bloomberg leaving, unions, and the real estate market. thanks.
“But as has been pointed out numerouse times, a lot of those stocks had no underlying value – unlike real estate which provides a needed benefit: shelter.” – 10:33
No one will argue that NYC real estate has zero intrinsic value. It’s the “excess” value that’s questioned. The only conceivable earning increase in residential R.E. was from resale prices and that came from cheap easy money. Any increase in rental income was negligible. Those betting on a crash are implying this “excess” value based on cheap, easy money (since about 2001) will be wiped out.
“the cat leaped out the body bag.” – 10:56
No, that was the bear.
“The only thing that will bust the NY market is a serious recession or mortgage rates over 8%” – 12:03
And that is exactly what is likely to happen. Smart money is very patient.
When the market cools it will not be noticed probably for a year until after it happens. These things do move in long term cycles. So let’s say you decide to rent for the next 5 years and then things slow down and you can buy for 20% (?) less than you could today…would you still be ahead if you take in to account all that you’ve spent on rent and the loss of your tax benefits? I don’t think so.
I’ve been a big champion of the bust for years I was certain that rising morgage rates would be the nail in the coffin, but at this point I don’t see it happening.
I bought my house 3 years ago expecting to lose my shirt at the top of the market. $300k for a single family in Crown Heights seemed insane!
There’s always someone out there with more money than me. They have brokerage jobs or family money. There is a ton of cash flowing into NY real estate from overseas. People who have cash want to be in NY.
The bust in NYC may turn out to be wishful thinking and all my friends who have been waiting for things to become “more affordable” will keep waiting.
My new theory? The only thing that will bust the NY market is a serious recession or mortgage rates over 8%
My 2 cents…… feel free to ingore