crown-heights-buildings-01-2008.jpgThe large yearly gains in the city’s property values appear to be a thing of the past. The Finance Dept. estimates that city property values rose only 1.44 percent in 2007, a big drop after six years of double-digit increases (in 2006, for example, there was an 18 percent gain). The smaller increase in values is being attributed to declining values in small homes outside of Manhattan. The growth in real estate values over the last several years has helped buoy the city’s economy and contributed to record budget surpluses. The lower assessments may force the city to make increases in the tax rate or end the $400 property tax rebate, according to David Weprin, chairman of the City Council Finance Committee. This is an indicator that we might be up for some tough fiscal times, and Wall Street isn’t helping, either, Weprin told the Times. Property values are no longer going up; they’ve stabilized, and I would expect that’s the trend we’ll see before they go down.
Gains in NYC Property Values Start to Flatten Out [NY Times]
Home Values Drop, But Taxes Go Up [NY Post]
Growth in Property Market Value Slows [NY Sun]
Photo by crown heist.


What's Your Take? Leave a Comment

  1. anyone seen the latest news on the antartic ice shelf and greenland melting from a few days ago? anyone at all worried what a few yards of sea-rise would do to NYC real estate? this summer’s arctic ice melt was off the charts, way beyond the wildest predictions. anyone in brownstone brooklyn got katrina-proof flood insurance? if you’re in it for the next 20-30 years, you might want to look into that.

  2. hey 9:52, bought my first 2br for $125k in the 90s lol

    is the runup sustainable? like i give a shit! the only way i end up underwater is if global society collapses and we all end up hunting rats for food. so, you know, you can hope for that.

    maybe end of the world deathcult terrorism might be a good route for you lol

  3. Another renter checking in … though I made a little dough on the bubble first.

    Maybe it’ll look more like this, as reported from near SF, when TSHTF. A 34% haircut over the next 2 years might well be conservative here, no matter what the cheerleaders say this week …

    Property #1 is 124 Birch Ln, San Jose, CA 95127. In fact, both of these properties are in 95127, which is an outlying area of San Jose (confirming my theory that the “tidal wave” of foreclosures would start from the exurbs and work its way inward.) 3BR, 1 bath, 1564 sq.ft. on a nice-sized lot of 7840 sq.ft. Last sale 7/1/2005 for $601,000. Now asking $399,000. Doing the math, we find that is a 34% discount off peak. The MLS lists 3 pictures of the inside and it seems to be in fairly good condition.

    This house would rent, in decent condition, for about $1800/mo. Doing the math for 200x rent comes out to $360,000, which I’m guessing the bank would take as an offer.