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]
@11:11am – you are optimistic and speak like a broker at an open house. Go speak to some real mortgage applicants. I took this little story from brokers outpost, a forum whose tone is entirely negative but being mortgage brokers they know the deal now.
“Wow. The housing market in this country has changed. I just got off the phone with Wells Fargo. We needed a pre-approval letter. I am hoping we can buy a decent sized house that is not a 2 hour commute.
Background: Married. Same house for 20 years with Wells Fargo. Never missed a payment. FICO bumping 800. 20 years on the job for me. Low six figure income with decent amount in various places. Planned on 20% down. Also a vet. Sounds like an easy approval?
The Details: 7.1 on a Jumbo. At borderline for income v. house. Asked for the highest figure just in case. They will only do it with 30% down! Who is going to be buying a house with 30% down? Nobody is going to qualify for houses in this area. (DC).”
This is a US sea-change not a local market issue. Banks are looking for tight appraisals and looking for 20% plus down. One reason co-ops always sold for less than condos was partly because they enforced well-heeled buyers. Now these restrictions go beyond co-op rules AND are market-wide. Real rates have not dropped on jumbos, appraisals are pushing up the down-payment needed to close. Nobody gets away with stated anything – full doc all the way. No getting the deposit off your dad and seasoning it for a month, either.
A typical buyer even in richy-rich new york usually has to sell, so they have to worry about this tricky process twice, not once. Once for their buyer, once for their purchase.
Of course there are still people paying full cash or selling an apartment in a tony building in new york to buy in brooklyn. But that slice of the market is not by itself holding things up.
“The What is out of his mind. Nobody with a decent job and a good credit history is having the slightest difficulty getting a mortgage today, nor will they tomorrow. Dude needs medication–if not inpatient treatment.”
Watch the fucking video stupid. Yes people are having a problem with getting mortgages! Plus new guildelines go in effect on 1/2/08. Banks are not loaning money to assfucks to but overpriced shit. You are a peon who has no clue on the housing market, it’s over!
The What
Someday this war is gonna end….
Here’s my take:
I am in the market for a mid-level brownstone in either the slope or cobble hill. I currently rent with an open-ended lease–so there’s no urgency on my part. I have bid (below asking, but not unrealistically low) on several places now and lost to essentially the same *type* of buyer every time.
It seems like it’s always a couple with a kid or two who bought their smallish two-bedroom
upper-east/upper-west side apt. for $600,000 six or seven years ago and are now selling it (perhaps to a european buyer) for $1.5+ million and need to make a deal pronto.
$1.95 mil for a cute house on 10th between 5th & 6th?
Can I move in right away?
It seems to me that whoever is selling to these euros or whoever is buying up all the apartments in manhattan is taking that cash and bringing it to brooklyn.
Rehab makes a good point. I wonder how long after the manhattan market eases will the brownstone market correct?
The What is out of his mind. Nobody with a decent job and a good credit history is having the slightest difficulty getting a mortgage today, nor will they tomorrow. Dude needs medication–if not inpatient treatment.
On a whim, I was surveying asking prices for houses in more urban parts of Connecticut. Remarkably, you can get a smaller early 20th century wood frame house in places like Greenwich for $700,000 to $1,000,000. $700,000 will get you a great house in Stamford. it won’t be a mansion, but it will be similar to most houses found in Brooklyn in terms of living area.
Especially when you get into the more distant parts of Brooklyn, one has but to wonder: how on earth do these houses cost so much money? Stamford is 40 minutes from Grand Central. Ditmas Park is more like 45 to 50. A disgusting, brick faced block that looks like a prison will cost you $700,000 in Bensonhurst. And, your commute will be much longer than from Stamford or Greenwich.
I just don’t see how these prices are tenable. New York City is fabulous, but the economics just don’t make sense for much of the outer boroughs.
I would say that there is an element of corruption in NYC. How many homes in sub prime neighborhoods in NYC were funded with fraudulent loans predicated on bogus appraisals? Probably quite a few. It’s the only explanation that makes sense.
Happy Holidays Fucktards!
10:06 We are in the middle of a GLOBE CREDIT MELTDOWN stupid! It wont make a difference if you cant get credit. Banks are NOT loaning money o asshole to buy overpriced shit, GOT IT. I bet there is i maybe 2 big banks that are INSOLVENT now! The housing market will get assraped in 2008. The gain made in the last 7 years will be vaporized in the meltdown and housing prices will go back to pre 2000 levels. RIP Mutant Real Estate Bubble 2000-2007.
The What
Someday this war is gonna end..
Here watch this! This will show the mind fucking of your world! Deep shit
Century of the Self
http://video.google.com/videoplay?docid=8655440618894671576
Rehab is correct in that the wild-card in NYC (manhattan) is foreign money.
Wall Street bonuses plays a role as well;
both psychologically and practically but in a sense that yearly infusion has been priced in – the only real upward pressure is foreign money and that could potentially save the NYC market but if history is any guide – foreign investors are a sign of the top of the market – think Japanese late 80’s
Its “Where is the What at”.
WQhat he said!