Goldman: NYC Prices Have a Ways to Go
“New York apartment prices are very high relative to the observable fundamentals. Using three alternative yardsticks—price/rent, price/income, and affordability—we find that prices would need to decline by 35%-44% to return to the valuation levels seen in the 1995-1999 period, before the start of the recent boom.” — Goldman Sachs via Curbed
Slopefarm, just lifted a glass to you. OK, it was a diet coke, but later, a glass of vino. Glad you feel the same, wasder, I will lift the glass to you too. From the start, I tried to figure out every possible scenario financially, and I figured that as a housing solution, (i.e. my HOME) it would work, as long as I had a house full of happy tenants.
So it works for me and that is why all the discussion of rents fit into that as well — i.e. I am looking for PEACE on EARTH, if only in my universe as far as it stretches. .
HOBOKENROCKS, keep dreaming on the $1MM for a full BH brownstone! But, if it happens, as I’ve said before, I’ll welcome you to the neighborhood with open arms and buy you a drink at the Henry Street Ale House.
Biff it actually went from 400k which was a joke to 1 million which is what I truly think I will pay for a bh townhouse at one point… Stop laughing
Sebb, the problem with your thinking is that NYC will still be the financial capital of the world. And even if that remains whether or not that will still be as important. I think NYC will still be important but just less so and with less hedge fund managers and executives cashing in stolen bonuses the prices of homes will come down. Most of Manhattan prices are trading at way over 20 times their rentals. This my friend will correct and when it does it will overcorrect as it overinflated on the way up. A bull and bear usually last longer than they should but both offer oppurtunities. I will be waiting for such opps.
Too bad people can’t make up the shortfall if they sell, so they won’t, b/c they don’t have to. Joe Shmo doesn’t have to mark his home to market like Goldman does so this is all about trees falling in the forest w/o observers.
Sebb, your premise makes my head hurt. Not even worth direct engagement.
So if Nyc the financial capital of the world is going to fall this much how much will the rest of country fall? So a place like New jersey or say Virginia will fall what say 99%
HOBOKENROCKS, it’s gone from $600K to $800K to $1MM. At this rate, your fantasy will actually meet reality some day!
Yea baby I will be getting my bh heights home for 1 million dollarsssss… I am ready for I am sleeping in nowadays and there is no more fun in trading. I would like to start my reno blog as soon as possible.