NYC Housing Prices Continue to Fall
Just-released March data from Case-Shiller shows New York City housing prices continuing to fall both on a monthly and yearly basis. New York was down 0.7 percent versus February and 2.4 percent versus March 2009 while some of the cities to be hit hardest early on, like San Diego and San Francisco, continued to experience…
Just-released March data from Case-Shiller shows New York City housing prices continuing to fall both on a monthly and yearly basis. New York was down 0.7 percent versus February and 2.4 percent versus March 2009 while some of the cities to be hit hardest early on, like San Diego and San Francisco, continued to experience strong recoveries. Price improvement in the housing market is clearly slowing and there is a very, very real risk that over the next few months, the year-over-year change in prices turn negative, Dan Greenhaus of Miller Tabak & Co. told The Wall Street Journal. That is not to say housing drags us down into a full-on double dip recession, something we’ve never believed, but its tough for us to envision a scenario in which housing prices decline and sentiment and perhaps consumption does not follow suit. The official press release is here.
Pretty well said BHO, certainly the best explanation of your position that I can recall. I agree that the fundamentals are unavoidable. I just don’t know if the 10x rent thing is the applicable standard in NYC.
NY Case-Shiller relevancy:
*Index Up +200% from 90’s trough to 2006 peak
*Brownstone Brooklyn TM up +200% from 90’s trough to 2007/08 peak
*Index Down -20% or so from 2006 peak
*Brownstone Brooklyn TM down -20% or so from the 2007/08 peak
Relevant on the way up, relevant on the way down. All these desperate bids to discredit the relevancy of the index FAIL. None explain, otherwise, why the correlation in price change. These assets competed for the same asshat buyers with the same Ponzi ‘nobody turned down’ credit. No, not all borrowers “bought” with nontraditional standards but the appreciation frenzi was common.
A home is valued around rents and income. These fundamentals make all residential properties interrelated, whether coop, condo, 1-fam, 4-fam, brownstone, colonial, fedderali, mcmansion, etc. Any disparities with architectural value or location were already built into prices before the credit bubble was blown. If Case-Shiller only tracked multifam brownstone prices it would still align with condos, coops, 1-fams, etc.
It’s relevant, indirectly but ultimately, and that’s why we watch it!
***Bid half off peak comps***
bklnplebe…the one thing that IS certain is that wasder WILL make money on his home. Pull your head out of the sand or wherever else it may be.
I don’t think asset depreciation is going to be milking any crooks. At least not the rich ones. The MAB has hurt the poor, not the rich. Such as my mother’s house cleaner of 20 years who lost a down payment and her house when the ARM she didn’t know she had reset.
by “these numbers”, I meant the NY Metro Area Case Shiller numbers.
I just don’t see how the NY Metro numbers, which does not include coops, condos or multifamily buildings, is a valid insight into the NYC private property market, which is probably 90% multifamily buildings, condos and coops, not the mention the fact that the metro area also includes suburban CT, NJ and Long Island, Westchester and other surrounding suburban areas.
That’s not to say that there are not huge macro-economic issues that can affect real estate markets, but these numbers really don’t provide any insight into what is going on in NYC, let alone brownstone Brooklyn.
bklnplebe–clearly nobody is as intelligent as you. I bow to your superior foresight and humbly return to living my life. Hope your bargain basement purchase in 2013 meets your needs.
there are cuts announced for schools, mta, parks, police, terrorism, etc otherwise we are doing great and take it all together.
the city was spared by the bailouts so the lower-of-the-high class thinks that it’s a low risk-low tax investment to buy in manhattan and parts of brooklyn but asset depreciation is a great scheme to milk these crooks.
Just saw Bloomberg speak at TechCrunch Disrupt conference. He said NYC is doing great, its only problems are national ones.
The main thing is the population here is growing. People want to live here, he said.
NYC restaurant real estate & retail businesses are up, tourism is down in single digits but much worse in other cities, and NYC has beat out Orlando as No. 1 tourist destination this year.
Meanwhile, NYC is investing in startups & innovation, he said.
His only mention of the subway is that people of all kinds take it together.