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]
It amazes me that people come on here and state that they can afford a 1, 2, 3 mil house but won’t buy.
Prices are too high, the middle class can’t afford NYC anymore….how sad!
Tell me how a middle class family that earns $80-100,000year is supposed to afford a $1m house/condo/co-op? Impossible!
“2:29 here, we bought our house at below-market, we found a special timing and opportunity to do so. Recent comps are already $200,000 more than what we paid, and these are sales that happened after the mortgage crisis. Plus we DO plan to stay in our house another 4 or 5 years even if eventually we settle upstate or CT. I figure if the market is hit hard enough to still affect us years from now if/when we sell, then we and everybody has bigger problems than losing a little money on real estate.”
Yo Asshole, you are OD’ing off the Kool-Aid. Where did you get your comps, Disney Fucking Land. Or was it a asshat Agent tryng to get your listing. Get me your address, I will run comps for you. In 4 or 5 years our economy will be a waste land, a fucking depression! You will be settling on cat and dog food stupid! 2008 is gonig to be the FUCK YOU year! No more Kool-Aid, Just some real asspounding!!!!!
The What
Someday this war is going end….
3:06 – in your price range there are short-term profitable opportunities to be had in manhattan resi real estate, even in this market, but we could debate that until the cows come home.
anyway, i hope that you’re putting some of that liquidity at risk, if not into your home.
2:29 here, we bought our house at below-market, we found a special timing and opportunity to do so. Recent comps are already $200,000 more than what we paid, and these are sales that happened after the mortgage crisis. Plus we DO plan to stay in our house another 4 or 5 years even if eventually we settle upstate or CT. I figure if the market is hit hard enough to still affect us years from now if/when we sell, then we and everybody has bigger problems than losing a little money on real estate.
Besides, it depends on what you’re buying. If you are selling because you are leaving the city thus you are buying elsewhere at an even greater discount than you sold, then you come out on top anyway. People lose money on real estate sometimes, it happens. My father is very financially conservative and has still lost money on real estate. But it’s how you play it over the longer term that counts.
As for the smartass at 2:50, in the early 90’s in my 20’s I bought a house during a time everyone was panicky about the RE market and too scared to make offers and when I sold in the late 90’s I made 3 times my investment back. Those panicky people were predicting the market would fall even more, and…..it didn’t. It rebounded right after the worst part of the panic. Sure, maybe it doesn’t happen this time. But I’m not going to rent for the next ten years waiting to find out.
CNBC: Merrill to slash 1,600 jobs, Citi to cut bonus pool by 40%
2:57 – 2:51 here. No, truth is I don’t need a place that big, but to 2:29’s point, I can afford it.
2:29 seems to think that people who have money will be happy to continue to throw it at NY real estate. My point is that I am such a person, yet I give serious thought to the wisdom of a major purchase before making it. I would argue, contrary to what 2:29 asserts, that “people with wealth” don’t rush stupidly into major purchases. Many of them are somewhat sophisticated about these decisions.
To your point, yes of course I have done the math on buy v. rent, if that’s your question. Based on current market assumptions, it only makes sense to buy if (1) you expect to be in your place at least 5 years and (2) you expect annual appreciation of 7+% over this period. The longer you stay, the less annual appreciation you need.
2:51 – is the alternative then to rent something comparable to what you could now buy for 3 mill?
2:51 – is the alternative then to rent something comparable to what you could now buy for 3 mill?
2:29 – I am 2:07. I can afford a $3M apartment, no mortgage. Nonetheless, I simply don’t see it as a wise investment right now. I agree with you that NYC real estate is desirable, but that doesn’t mean that pricing trends are favorable. Just because something is desirable does not mean it is immune from the laws of supply and demand, which, frankly, do not bode well in the near term for NYC real estate, plain and simple.
If you are planning on staying in your NYC home for 10 years and don’t mind prices going down soon after you buy your place, possibly for a while, knock yourself out.