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.
1:53…”desperation and fear” please elaborate!!!!????
Rents do seem to have peaked a bit — right around the time I signed my current lease in park slope last Sept. lol. I left Manhattan after being offered a 40% rent hike (my old building is now one of the “1st month free!!!!” places).
To be honest, I like my place and would put up with a small rent increase, just because it would be cheaper and less hassle then moving. But if my landlord gets greedy, I’m moving. I’m sure he’ll find another tenant, and I’m sure I’ll find a cheaper place.
As for buying… Maybe in a couple years. Doesn’t seem like the right time for me. I’ll just keeping saving for a bigger down payment.
I could see buying now if you found a place to live for the long term that you like. There is rarely a bad time to do that.
I wouldn’t buy as a short term investment or get a 1 bedroom if a 2 bedroom might be needed in a couple of years.
Looking at what is happening in Queens and North Jersey, it is hard to imagine Manhattan and Brooklyn prices continuing to rise.
All the new construction started during the boom years still isn’t complete, so there will be a continuous influx of supply coming onto the market at a time when demand is dropping and borrowing is getting more difficult.
And if Manhattan and Brooklyn prices keep going up, there is always Queens and North Jersey.
1:57 – no jumbo loan…i put 40% down and am quite comfortable with the financing. really think in a few years the value of my sexy new condo will diminish? you’re delusional. maybe i can rent out my condo to you a few years from now while your still waiting to get into the market.
Are you saying you might have to go back there, 2:02? I’m sure it would be a huge loss for the city if you did.
And 1:59, I assumed you were well-traveled enough to know that people in major European cities are generally renters, and that I wasn’t referring to sheep farmers and winemakers. My mistake.
1:57 when you are priced out of NYC because of skyrocketing rent, enjoy Akron.
I hear it’s lovely this time of year.
The point is that 1:43 was wrong. They said nothing about Paris or Berlin.
They said Europe.
Dead wrong.
As 99% of the people on this blog are.
I’m not worried about it, 1:53. When you’re upside down on your jumbo loan a few years from now, you can talk to me about throwing money away.
And 1:50, are those national statistics or do they purely reflect Paris, Berlin, and Barcelona? Ownership statistics in the United States 20 years ago also would have been quite high, but they probably weren’t as typical in New York and, to a lesser extent, San Francisco and Chicago.
1:46 – don’t count on it…keep on throwing your–i mean keep on renting.