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.
2:57,
No worse than co-ops in prospect heights and park slope i was looking at.
i mean, get more turned on by my brokerage account/savings account balance then crown moldings…..but that’s just me.
2:53…you misunderstand. I’m taking the other side of that trade. You just don’t get it. I’ve been long those ETFs for a few months. Do you understand what any of that means? If you don’t I will explain. My purpose is not to mock you but to educate you. If you don’t understand, don’t comment.
Dave,
As I’m sure you know, the market is a leading indicator, so the time to short those was last year — as a quick check proves:
IYR, 86 last year, 68 today
RWX, 70 last year, 56 today
XHB, 36 last year, 22 today
They might still go lower, so I wouldn’t buy them, but the easy money has already been made on the shorts.
Cheers.
a 1000 sf apt on the northside of wburg must be a real shithole.
the neighborhood sure is.
I hear more desperation and fear in 2:51 actually.
Dave already owns a million dollar plus, asset 2:53.
What do you own besides a pair or two of beat up pumas?
There’s nothing wrong with renting, especially if you’re young.
I’d love to own something someday, and fully anticipate on doing so.
I’m 24 and work in Finance, and have enough money saved to easily plunk down 20% on a starter studio/1 bedroom co-op in Brooklyn.
However, my rent is only 1,000 dollars a month for prime northside williamsburg, where I greatly enjoy my quality of life. I’ve looked at apartments i can afford, and it would honestly be a step down as far as ameneties and comfort. Why would I buy something for the sake of buying? Bragging rights on Brownstoner, so i can call people bitter renters?
I’m not about to risk timing the market right now, where I can get a safe return on low risk investments as I work slowly towards something I would stay in long-term.
What is so wrong with that? I mean, if I was 15 years younger and my parents gave me the downpayment for my UWS apt which i sold for a 2 million dollar profit, I could also own a brownstone in Park Slope. But for many, it’s not just feasible.
There’s that “desperation and fear” again, Dave…
Really 2:46 – You think if you bought a house in the Bronx in 1957 and sold it in 1977 – 20 years=long term – adjusted for inflation you think you would have been better off?
Nothing is “always” and whenever everyone believes it is – buy the other-side
For all of you SO CONVINCED THAT REAL ESTATE PRICES ARE GOING TO FALL…here’s how to make gobs of money…
Short IYR, RWX & XHB….just call up your Schwab broker and tell hime to short them. You need to have established a “margin account” first.
PUT YOUR MONEY WHERE YOUR MOUTH IS.
P.S. Lear what “base building” for a chart is first.