Has the Bubble Finally Burst?
The NY Post certainly thinks so. They report that single-family home prices fell in the city 7.4% from July of ’07 to July ’08 (though the number is 16.3% for cities they surveyed overall). They point to a Park Slope brownstone whose price has sunk from $2.8 million in January to $2.35 million now; still…
The NY Post certainly thinks so. They report that single-family home prices fell in the city 7.4% from July of ’07 to July ’08 (though the number is 16.3% for cities they surveyed overall). They point to a Park Slope brownstone whose price has sunk from $2.8 million in January to $2.35 million now; still seems like pretty close to bubble prices to some folks around here. We’ve been seeing prices fall in some new condo projects around town. So is this it, the moment you’ve been dreading or dreaming of?
NY $$-Home Bubble Bursts [NY Post]
Bubble. Photo by Pepa….!
fsrq:
I’m sure the folks in the Supreme Soviet were saying the same thing in 1985 as the Afghan War was grinding down the will of the people.
I do hope you’re right. Thanks for spending the time compiling those statistics.
I Disagree—I am with you on your overall estimation of the “deserves to suffer” issue, but I don’t think Ms Muffett was being self serving. Seems to me she was just expressing a nervousness that we all feel no matter if we benefited from the inflated property values or not.
Prodigal Son–you sound like a smart, rational person. Which half of the country deserves to suffer in your opinion?
do you guys think I will be able to buy that brooklyn heights townhouse for around 600 k in a year or two….
I just asked my magic 8 ball. It said “all signs point to no”
sebb: Ease up there, old buddy. I just pointed out that no one knows who you are. The point is that this is an anonymous message board. There is no pride here, unless you have some issues with separating your Internet personality from real life. Relax man.
do you guys think I will be able to buy that brooklyn heights townhouse for around 600 k in a year or two….
Prices in Hoboken are not being hit all that hard. A home near my home on the waterfront was put up and went into contract after 1 week. At ask… But our property values are not as bad as the ones in Brooklyn. Also a friend of mine sold his downtown brownstoner at a price better than what he bought it for in 2005. Not a big profit but a profit. If you bought a home with a good rental roll than you should be fine.
Prices for two- and three-families are down significantly, about 20 percent, since January in Bushwick, where I live. Some properties seem to be selling quickly, while the really wrecked properties are lingering.
Anybody know if the scenerio for mortgages has changed in the last few days? Can you still get a loan with only 10 percent down? (Sounds like maybe no given the above comment about PMI insurance backing out.)
Polemicist…come on you are sounding like “The What” now….I agree that the U.S. is in for some bad times (frankly since the U.S. is the ‘housing market’ that the rest of the world is leveraged on…they’re screwed too)
but we have a 14Trillion dollar a year GDP – which over 20% is pure industrial production, we are the 3rd largest producer of oil in the world (9M barrels a day!); we are the 2nd largest producer of natural gas in the world; we are one of the worlds largest producers of agricultural products; we export approximately 1.1 Trillion dollars of goods annually, we have a growing (mostly) literate population and one of the most advanced infrastructures in the world.
In the worst worst worst case scenario absent total war or horrific natural disaster, this country could (but unlikely) have brief periods of economic chaos (as in CC stop working, bank failures, riots, etc…) and even more persistent periods of relative deprivation (as in gas/electric shortages, reduced health care, etc…) but the idea that the U.S. is totally bankrupt, and will have to resort to a barter economy is loony, in fact the idea that the U.S. will cease to be one of the most powerful economies on earth in any of our lifetimes is almost laughable.
11217 – yes, right, thanks for the clarification. i meant unlucky in the financial sense that recent buyers will not likely profit in the same way over a similar time span as the miss muffetts of the world have.
wasder – i agree with you. that’s my point, actually. contrasting one’s relatively good position with that of “rogue” wall street bonus hogs seems pointlessly self-justifying, especially when so many people will lose so much.