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.
10:13 in my opinion prices will correct 20-30 percent. So is it smart to throw away all that money? To the guy who cant find a condo in historic districts. well lets just all pray for that guy
My point is that condos in Brownstone Brooklyn are indeed a scarce commodity and therefore it may not be a bad time to buy. From what I hear lending on co-ops is much tighter then on condos right now if you don’t have a substantial down payment. So if you were thinking of a co-op in Park Slope or Ft. Greene, etc. and you are now forced to go condo your options are limited if you don’t want to go to one of those “less desirable areas”.
I think it is foolish to say it is a terrible time to buy. If you have a 7-10 year plus time horizon for remaining in the property, why not purchase now if you find something you like. Sure, you could have maybe waited 6 months and gotten something for 5% less but over the long term you will still be ahead of the game and will be enjoying your residence for years to come.
Jeez 10:04, what’s your point, outside of Downtown Brooklyn, Williamsburg, and the condos on Fourth Avenue which extends from Park Slope to Sunset Park you don’t think there are all that many condos on the Brooklyn market. Well, you just eliminated the three largest areas. There are a lot of areas in Brooklyn which are brownstones which don’t offer much potential to develop large scale condo developments. Have you ever heard of Brownstone Brooklyn?
Sorry, I meant to exclude Williamsburg. I think we can all agree that is the most overexposed area of the whole city and faces the greatest risk severe price declines due to overbuilding. I also think it attracts a different customer then those looking in Ft. Greene, Park Slope, Cobble/Boerum Hill, etc. (which is where I am looking)
9:38 if you want a condo in that range go to williamsburg. Hundreds of condos for sale. If you are buying a condo right now you have the wrong idea .
9:38 Would you mind telling me what those condos are? I am in the market and besides the junk on 4th avenue and Downtown, I have not seen much.
NY crashed 2 years after the national market in the 80s. Given the combination of wall st meltdown, massive layoffs, toxic tax increases at the state and federal level, mortgage rules changes, etc, game over.
Phoenix did not have the wealth to support high prices.
New York does. Every market is different.
Soros has not been right in 20 years. He was put to pasture some time ago.