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.
9.37 – I just read an interview with George Soros in the NYRB that says you are completely wrong.
So do I believe 9.37 or Soros – one of the world’s richest men who makes his money by successfully predicting the markets?
Housing may be turning the corner in places that have already taken a 30% haircut (i.e., Phoenix), but markets that were late to the correction, (i.e., Seattle and New York), are likely to see significant declines in the next couple of years. For a really good round-up with lots of numbers to back it up, go to http://seattlebubble.com/blog/
9:38
I respectfully disagree on the highest level.
The BK market is not only saturated with non Downtown condos btw 650 and 800 , its practically overflowing to flood level. Options are bountiful.
And 9:37
Nice Pollyanna thinking. Lets all play the Glad game.
9:38
I respectfully disagree on the highest level.
The BK market is not only saturated with non Downtown condos btw 650 and 800 , its practically overflowing to flood level. Options are bountiful.
And 9:37
Nice Pollyanna thinking. Lets all play the Glad game.
Get thee to the the Toren sales office, 9:37. Don’t forget to take those blinders off before crossing Flatbush though.
Is it just me or is there really not that much condo inventory on the market in BK? If you are looking to spend $650,000 to $800,000 and you don’t want to be in a downtown high-rise your options are very limited. And if you are a potential buyer who does not have 20% down, condo’s are going to be your only option.
This article is about six months too late.
The Market has already turned the corner. The Fed has announced the Credit Crisis is over, employment figures are on the rebound and most analysts say the same is true for the real estate market. WSJ reports that real estate is now as affordable as any time in the 90’s!
The beauty is that the NYC never really dipped like the rest of the country, it just stalled for a few months.
Sure its cliche, but there never really has been a better time to buy before the boom begins again.
The slow down is ending and the economy is beginning to take off again. Good times.
inventory in Manhattan spiked to 7600 units this morning. NYC is about to have a correction in pricing.
So Williamsburg is considered the “low-end!!!”