How 'Bout That Brooklyn Market!
That’ll teach us to read beyond the headline! Turns out that yesterday’s New York Times article “Market Strong for Apartments in Manhattan,” which revealed that prices on the island to the west had risen between 6 and 12 percent last quarter versus the last quarter of 2006, contained even more bullish data for our fair…
That’ll teach us to read beyond the headline! Turns out that yesterday’s New York Times article “Market Strong for Apartments in Manhattan,” which revealed that prices on the island to the west had risen between 6 and 12 percent last quarter versus the last quarter of 2006, contained even more bullish data for our fair borough. According to Corcoran, average prices were 22% higher in the first quarter of 2007 than they were in the period a year earlier; the mean sale price rose from $514,000 to $628,000. The more inventory that we’ve been getting, the more inventory we’ve been selling, said Corcoran veep Frank Percesepe. By comparison, the year-over-year trend in Manhattan was slightly down. We wonder what Q1 2007 looked like versus Q4 2006.
Market Strong for Apartments in Manhattan [NY Times]
Don’t forget the rising prices ARE affordable to a lot of people in NYC who make well into the 6 figures, if not more. If there continue to be plenty of those kinds of buyers, then there’s no reason the sales prices won’t keep rising. Last I saw, the report on the NYC job market was very good. It’s not that the income levels have risen (though they HAVE actually) it’s that the people in those higher income levels that often left the city previously, now choose to stay. As everyone is saying. If you try and figure out how the same people who used to live in some of these newly appreciated parts of Brooklyn are suddenly able to afford over-million dollar houses, yeah, it wouldn’t make sense.
anon 3:05, agreed. Let’s shake on it. 🙂
3:04. nope
A bubble. A bubble relies on suspension of disbelief and an expectation of large profits, but it is not the same as a Ponzi scheme. A bubble involves ever-rising (and unsustainable) prices in an open market (be that shares of a stock, housing prices, the price of tulip bulbs, or anything else). As long as buyers are willing to pay ever-increasing prices, sellers can get out with a profit
i mean i see your point sylvia…but i’m just saying that you can either do something about it and get in the game (if you are able) or choose not to because you think it’s overvalued.
we each have to make the choice that is right for us and both makes sense.
personally i’m a happy homeowner and get to live in the city and neighborhood i love and pay less for my mortgage than a similar sized apt would cost to rent.
2:55 Isn’t what you describe a Ponzi scheme?
http://www.speculativebubble.com/videos/real-estate-roller-coaster.php
Whoas me indeed.
“Where are people going to get the money to keep buying more and more real estate, let alone make the payments on the real estate they own, with rising costs of insurance, taxes, gas and everything else? It’s just not possible.”
do you know where they are getting the money? from the money they’ve made from the last 6 years. i can count a ton of people who made some money on a place they bought in 2001 or 02, used the equity and bought a small beach house or a cabin. even those like me who bought at the “PEAK” of 2006 as everyone likes to say around here (even though prices are still going up). my place, having now lived in it for 6 months has allowed me enough equity to put a down payment on a cabin upstate and the cycle continues.
the people you are referring to that are unable to afford to buy real estate are the ones who constantly come on here and say that the end is near. the ones who have taken a leap and gotten in the game are the ones that continue to play the game.
my parents started out with not a penny to their name and i don’t think my dad has ever made over 100k a year, yet they now own 3 homes (no, not mansions, but nice little places) and probably have over a million worth of property.
that’s how you do it.
not by sitting on the sidelines saying that it’s too expensive, i’ll never afford anything, whoas me…
Yes, I’m sure London, as NYC, can keep going up up up. I’m sure people can keep on taking out equity loans on their homes to pay for the standard of living they’ve become accustomed to (as they’ve been doing in the UK, just like here). I’m sure their salaries don’t have to go up, and when their payments do, it’ll all be fine, they’ll just pull some money out of their savings. And as for the people who complain about it or try to sound the alarm, well, they can just be written off as bitter British renters.
Our national household savings are in negative territory. Where are people going to get the money to keep buying more and more real estate, let alone make the payments on the real estate they own, with rising costs of insurance, taxes, gas and everything else? It’s just not possible.
As for whether it’s a housing bust or a correction or a soft landing or a negligeable blip, I guess it depends where you’re standing, doesn’t it. You don’t have to call it a bust if you don’t want to (the NAR certainly doesn’t). But it’s going to hurt regardless.
i believe if you will note, i said most. i never said no speculators.
and if you don’t realize the difference between the market here and in las vegas and miami, you my friend are in fact terribly misguided.