Most Post-2006 Condo Buyers Are Underwater?
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan: I think it’s safe to say that the value of any apartment purchased…
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan:
I think it’s safe to say that the value of any apartment purchased in the last two years is less than its purchase price. The simple calculation is that if you bought an apartment a year ago and financed 90 percent of the purchase price, as many did, and now it’s worth 20 percent less, you’re upside-down as an owner.
That’s another reason why co-ops are in better shape: Most owners had to put down a minimum of 20 percent when they bought.
The Downside for Condos in a Downturn [NY Times]
Excellent, by all means quote this guy:
“Mark Zandi Says Housing Slump at `Beginning of the End'”
2008-06-26
– http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azco4uH3RZKY
11217–So you’ve visited Recoleta a few times and want to buy. You’ve spent a grand total of 1 month there and make sweeping statements about the city. Have fun getting your CDI and hope you have enough luck to hire an honest agent. I promise you the process will be a humbling experience.
I enjoyed living with roommates….until I just didn’t anymore. It was like a switch had been flipped.
Doesn’t make you odd for liking living with someone. Everyone is different. I was actually terrified to live alone, and after the 3rd day in the new place, couldn’t imagine living with anyone EVER AGAIN.
It’s pretty heavenly for me. I love the privacy and being able to do exactly as I please any time of day or night.
Reaching a bottom does not mean there will be an upside. If rates go up prices will be depressed further. Even if prices remain flat houses will be depreciated because of inflation.
I think Zandi is too optimistic. The whole “recession” part of the recession is just starting…by this I mean that most of the housing price movement we’ve seen has been from toxic mortgages and frozen credit. we haven’t seen the effect of high unemployment yet. we’ve only gained 2 points of unemployment out of a predicted 6 or 7. I can’t see people scooping up houses.
im in my 30s and like having a roommate. i think if i lived alone again i’d get depressed or something and hole myself up in the apt all the time. plus i like sharing utility bills and stuff. and it’s nice to have stuff to cook with and in and adult furniture. granted none of it is my stuff, but it’s nice to have access to it all. im probably coming across as seriously lame with this post hahah
sometimes i think human beings arent meant to live alone actually. we are more like dogs than peacocks you know.
*r*
I think you misread the article, fsrq.
DIBS – and since the overall housing market has been falling for 2 years and NYC seems about 6mo into this – IF Zandi is correct we are looking at 2011 until NYC bottoms.
Sounds about right to me, Dave.
And I’d guess that the 40-50% drops in Phoenix, all over Florida, California, Las Vegas, etc will offset the probably 20-25% drops we will see here.