Home Prices Continue to Slide, and NY's No Exception
The New York region isn’t immune to the housing troubles plaguing the rest of the nation, according to data released yesterday. The Standard & Poor’s/Case-Shiller indexes found that home prices in 20 large metropolitan regions fell 6.1 percent from last October to October ‘07; year-over-year values in New York, meanwhile, dropped 4.1 percent. While the…
The New York region isn’t immune to the housing troubles plaguing the rest of the nation, according to data released yesterday. The Standard & Poor’s/Case-Shiller indexes found that home prices in 20 large metropolitan regions fell 6.1 percent from last October to October ‘07; year-over-year values in New York, meanwhile, dropped 4.1 percent. While the data covers the whole New York region rather than just the five boroughs, an S&P analyst told the Sun that the numbers reflect the city’s changing fortunes. “We track a large area where the homeowners’ livelihood ties back to the New York City economy,” the chairman of the index committee at Standard & Poor’s, David Blitzer, said. “The home prices in New York have been weak, and don’t show signs of a quick turnaround. Several New York analysts, however, believe that closings on high-end properties will buoy the city’s market—closings that are tied to Wall Street bonuses. “For New York City, the wild card will be what happens with Wall Street,” Jonathan Miller, the director of research at Radar Logic, said. “The impact on real estate will be more associated with jobs and bonuses than anything else.”
Home Prices Fell Faster in October [NY Times]
A Bearish Sign for N.Y. Home Prices [NY Sun]
“11:50: If all you are saying is that people will now have to be able to afford the house they buy based on available cash and pre-approved mortgage applications, then how is what Rehab said so optimistic?”
Because his tune is that the market will not fall, because everything is ok. What is not sinking in is that the rapid price appreciation of 2002+ is due to the people who could not afford the house they bought but were given cash to buy it anyway. And this generous and unrealistic high LTV financing has been removed, up and down the line, not just at the low end.
Simply put, the pool of fully qualified buyers shopping at each price level has shrunk dramatically. Therefore prices, which lag due to seller stubbornness, are on the way down now as well.
People who bought in 2007 are already losing chunks of their equity. But you know – if nyc is so well off and 20% downpayments don’t frighten anyone, that isn’t a problem, right? That kind of financial hit is a flea bite.
12:03
It’s not you. We are in very strange economic times. At the risk of sounding like the What consider this. In the history of mankind never has the richest developed nation (the U.S.) been a massive borrower to an undeveloped nation (China). It’s simply never happened before.
We borrow China’s money by selling them US bonds, which then allows us to run our incredible defecits and to keep our interest rates low. (This has then fueled our housing boom.) We borrow their money so we can buy their products which allows them to keep their expansion going. The only reason we can get away with it is because the dollar is the reserve currency of the world. Once we lose that (no one knows when), what the What predicts becomes a possibility. Until then, he’s just an Asshat.
Is it me or does it seem odd to anyone else that in the richest city in the richest country in the world, the vast majority of the citizens cannot afford housing and we have to be waiting on rich foriegners to swoop down and save the real estate market. This would appear to be something you would see in a third world country but not in the USA.
11:50: If all you are saying is that people will now have to be able to afford the house they buy based on available cash and pre-approved mortgage applications, then how is what Rehab said so optimistic?
For all you doom and gloom people, really, take your medication.
The overinflated market is over but people with the cash and the good credit will get the mortgages they need when they need them. Sleezy lenders and ignorant or sleezy lenders will have to step out of the market.
Get a life people.
What, you are an asshat and a fucktard
These cycles have been going on for hundreds of years. Are you surprised that banks are being a little cautious now? Do you think it will change in time? Of course.
Note to person thinking about CT. Taxes on houses there are probably in the 10k-20k range. Not so in NYC. Also most larger b’stones have a rental which provides an income stream. This makes the economics of these buildings different. I know there are other factors – income taxes, schools, etc but you cannot compare NYC to CT as apples to apples, there are too many differences.
To The What.
My wife and I are about to close on a 1.4 mil house in the Slope.
We have decent jobs and good credit.
We have mortage peolpe falling over themselves to give us their business.
Unless you have real life examples, not the cyberworld, Shut the assfuck up!
Hey, The What, people with good credit and decent salaries (ie, the people buying overpriced condos in Manhattan and Brooklyn) can still get a mortgage, the best evidence being that I just got a mortgage (10/10/80) for an condo in Downtown Brooklyn.
And, yes, I could care less what happens to the housing market now–I can afford my mortgage and I have no plans on moving in the few years, at least.
I think Polemicist raises a very interesting point. I always notice how cheap the CT/NJ/Westchester houses seem in the Sunday NY Times Real Estate where they feature a few properties with pictures on that What’s Currently Available section. I can see paying a premium to live in Manhattan and a couple parts of Brooklyn, but Bay Ridge? What gives? If he’s right, a lot of areas in Brooklyn are going to be hurting.
Rehab: Wall Street is filled with little dicks. THat is why they have so much to prove. As for your comments on The What, you are right on.
The What ….. which 2 big banks are insolvent you nutty little asshat fucktard you?