Lessons From the Foreclosure Front Lines
A recently transplanted New Yorker named Michael Houtkin won the bidding on a one-bedroom condominium on the outskirts of Boca Raton, a few blocks from three golf courses, for the incredible price of $30,000. Things were almost being given away, he said later…The glut of foreclosed homes creates a self-reinforcing cycle. Falling prices lead to…
DIBS has brought up the “entitlement” charge a couple of times now (now that “bitter renter” has lost its sting, I suppose) so it’s worth pointing out how senseless it is. It’s not “entitlement” to want to purchase a home for a pre-bubble price, especially when the said bubble was a self-reinforcing cycle that enriched the least responsible actors in the financial world, and whose pricking has wrought massive dislocation on the global economy. What is entitlement is to believe that, having purchased a senselessly over-valued home, you’re entitled to endless price appreciation and a virtuous cycle of bistros and wine bars and gourmet grocers, even as the funny-debt cycle pushed out the very people who made your neighborhood so livable in the first place.
“Just live and enjoy, lower prices will probably bring more income diversity and much more interesting people to your neighborhood.”
Not the type of “interesting” you want.
The What (Watching a train wreck in slow motion)
Someday this war is gonna end…
“Lower prices is not a BAD thing, unless you purchased from 2005-2007 and need sale within the next 2 years. If you have steady job, a nice savings and love your home, why would you care if prices dropped. Just live and enjoy, lower prices will probably bring more income diversity and much more interesting people to your neighborhood.”
Sensible and thoughtful advice 7and5…
Entitlement.
“maybe families can move into neighborhoods they were kicked out of with high rents!”
If they have jobs/incomes, that is.
Boca Raton is NOT in Park Slope – hence any point trying to be made from this article is MOOT
Good keep those prices coming down maybe families can move into neighborhoods they were kicked out of with high rents!
I still can’t believe there are people out that still don’t believe NYC real estate is a long way from bottom. The NYC job market is awful right now- in almost every industry. Less jobs means more foreclosures, more people forced to sale but to a limited buying pool-which means much lower prices.
Lower prices is not a BAD thing, unless you purchased from 2005-2007 and need sale within the next 2 years. If you have steady job, a nice savings and love your home, why would you care if prices dropped. Just live and enjoy, lower prices will probably bring more income diversity and much more interesting people to your neighborhood.
“Dave Boca Raton has some primo Real Estate Dumbass! It’s to some very wealthy people and the point is the shockwave is coming your way!”
Like West Palm Beach and Madoff, a lot of old New York money out there. Shockwave already here. Wham!
“This article was ridiculous. He had absolutely no facts or arguments to support his conclusion.”, “So ridiculous and off base.”
You guys are wrong wrong wrong. Curbed and brownstoner posted it for a reason. Read again…
” ‘…The glut of foreclosed homes creates a self-reinforcing cycle. Falling prices lead to more foreclosures. Foreclosures lead to an excess supply of homes for sale. The excess supply then leads to further price declines.’ ”
It’s called a downward spiral. Very sensible. Very relevant. But he left out higher interest rates. And don’t let that cute little 15 percent figure fool you. That is an average for the nation. New York is the last to fall and will see WAY MORE downside. Last but not least, what if our foreclosure process/laws were on par with Florida? Man o’ man…
***Bid half off peak comps***