Condo Market: You Can't Handle the Truth!
“The truth is that people can’t take the truth,” Robert Levine, the president of RAL Cos., is quoted as saying in a Sun article about how the city’s condo market is (brace yourself!) not as healthy as it once was. The point of the article seems to be that though the press has instilled “fear”…
“The truth is that people can’t take the truth,” Robert Levine, the president of RAL Cos., is quoted as saying in a Sun article about how the city’s condo market is (brace yourself!) not as healthy as it once was. The point of the article seems to be that though the press has instilled “fear” in people (another Levine quote) about the value of real estate as an investment, condos are still worth buying because the city’s market will eventually rebound. Here’s the evidence the story gathers about condo sales slowing: financing is shaky (“As transaction volume dries up, and liquidity remains nonexistent, property values will fall, and banks will begin foreclosures,” say Kevin Comer, the president of Beck Street Capital. “The kid gloves will come off, and it won’t matter if you own property at Fifth Avenue and 58th Street or Williamsburg, the banks will be brutal as they all struggle to survive and avoid Bear Stearns fate. The busted condo deals will be the first to fall given their short term financing.”); a ton of prospective buyers are lowballing offering prices, says one developer, which means inventory isn’t moving unless a sponsor’s willing to make a deal; after buzz fades on a condo that’s just put up listings, sales are languishing, says Gary Malin, the president of Citi Habitats. So wait, what’s the truth that we can’t take? Oh, right—now (or very soon) may be the time to buy. “Now more than ever its location, location and location,” says Beck Street Capital’s Kevin Comer. “Long term, real estate remains a great place to invest capital, especially in New York City, and we are headed for one of the best buying opportunities of my lifetime.” Consider yourself truthified.
Believe It: Condo Sales Slow [NY Sun]
Still from youtube.
the cost of renting is going down this year as opposed to the cost of owning. some years renters win some years owners win. The past 8 years owners have won. This year is diff. though. If my landlord does not lower my rent i can just simply move to one of the many other spaces going onto the market. I can get the same space I have now with all new stuff for about 10 percent less then what I pay and in the same area. I started renting in 2006 when i sold my place. The supply of avail. rentals is much greater now then in 2006 for my place or sim. units.
Man, the owners who post on this site are increasingly pathetic.
http://www.gothamist.com
“scared of renters freedom”? Must be a new phobia I’ve yet to hear about. Anyway, I do think people here sometimes are a bit tough on renters. There are instances when I think it actually does make sense to rent (e.g. newcomers to the city who aren’t sure for how long they want to stay, individuals going through divorce or some other hard time who can’t afford to hold on to their home, etc.). I don’t think it’s fair to label them as “dumb” any more than it would be realistic to assume all homeowners are smart, which sure as heck isn’t the case.
12:26 please tell us about what you rent and where for $800 and compare that to where people are paying $800 or more for their maintenance…you’r come comparing apples to oranges but i suspect you don’t know what that means!!!
1) What is with all the Soros bashing?
In 2007, the Quantum Fund (his hedge fund) returned almost 32%, netting Soros $2.9 billion.[10] see http://en.wikipedia.org/wiki/George_Soros
I suspect that’s more than any poster on this board made. It’s also the second best performing fund in the country last year.
http://www.crossingwallstreet.com/archives/2008/04/top_hedge_fund.html
So, if he says that NYC real estate is in for a correction, you should listen.
2) Brownstoner — why don’t you set up a poll of where people think the brooklyn condo market will be in 2 years?
3) what ever happened to the 6-month ago HOTD look back?
12:25, I hope you’re planning on living on the beach in Hawaii if you can’t afford to rent in NYC.
12:10 – You have to save for retirement no matter what – if renting remains ‘cheaper’ (year over year )till then, then presumably you will have been able to save more and should be able to handle any reasonable rent increases – and if buying becomes cheaper at some point then obviously it would pay to take the money accrued and buy.
If your going to rent (or even own) and save nothing, then your correct – you are screwed – so what – people are making an economic argument not a psychological one – it is correct that psychologically many people need the forced savings of a mortgage – doesnt mean they arent potentially “paying” more for that.
my rents 800. thats less than most maint.
my are people scared of renters freedom.