NYC Real Estate Market 'Most Challenged'
“When we look at New York City, we look at a price-income ratio that historically has been four times income, versus three times nationwide… If you want simply to get back to the median, it would be a 46% correction…If I had to pick one market in the country with the most challenge and the…
“When we look at New York City, we look at a price-income ratio that historically has been four times income, versus three times nationwide… If you want simply to get back to the median, it would be a 46% correction…If I had to pick one market in the country with the most challenge and the most substantive rate of decline [ahead], it’s New York City. It has the greatest number of job losses among the higher earners.” — Ivy Zelman, a former Credit Suisse analyst, in Barron’s via Curbed.
Wasder;
Didn’t make it to Kyoto this time, though I have been there before. I’m due for a revisit.
Have you ever been to the Kamakura area? I made it there on my previous trip to Japan, and I really loved it. It has managed to maintain a rural, small-town feel that is so rare in Japan, and it also is chock full of shrines and other cultural sites. There are also alot of nice bed-and-breakfast type inns. I heartily recommend it.
benson–were you in Kyoto on your trip. This is perhaps my favorite city to visit on the planet.
There will not be a drop in price of a townhouse somewhere in Manhattan such that I would move back. It will not happen. Manhattan townhouses will always sell at a “multiple” of comparable Brooklyn townhouses.
Joe: Perhaps you will move if that happens. But I don’t think you can extrapolate a city-wide trend from one person’s reaction. Layered on top of the individuals who might move back to Manhattan if there is a particular drop in prices there is an overall increase in the status and popularity of Brooklyn relative to Manhattan, and I don’t expect that to go away any time soon.
To be concrete, I just don’t think prices for brownstones on park blocks in prime Park Slope are going to fall that much. Those prices will be sticky. Prices for new condos (new contruction or conversion) will take a heavy beating. There is lots of stuff in-between.
snark I was kind of paraphrasing to make sure I got the argument — I don’t think it’s permanent. I think you and I are on the same page.
Hi folks;
My mind and body are undergoing the readjustment process of being back in NY after a week in Japan. Ugh. As such, I don’t have the ability to weigh in too deeply today. Let me just throw in one contribution on the permanence of the newfound popularity of Brooklyn.
This weekend there was a party in my condo complex (in Park Slope). At the party I met a new neighbor, a recently-married young couple who moved in about 1.5 years ago from their previous place in Mnahattan. I was chatting with the the wife, and she was telling me how much she enjoyed living in Brooklyn, specifically citing the fact that it is a more friendly place, where one can actually get to know your neighbors. She made a statement to the effect that she would never go back to Manhattan, even if she could afford it.
I know that this data point is completely anecdotal, but my gut feeling is that she is not alone in her sentiments.
By the way, I have to welcome Joe the Bummer to the scene. I like your temperate, friendly posts.
Joe–you don’t have kids though, right? This is where Lechacal seems to be on to something. Even if relative affordability becomes close between BK and Manhattan the amount of space one gets for the buck will favor BK.
Now let me anticipate the intellectual responses from BHO, cornerbodega and the What…
Dave gets assraped in the ghetto
PWNED
Baseball bat to gentrifiers heads (as an aside, oddly Bed Stuy was gentrified by its own residents and long before I arived, but no matter)
Please Mt. Obama more skittles for Dav’e home
Someday this war is gonna end….
cornerdbogega doesn’t understand anyhting actually.
I went to a bunch of open houses yesterday – beautiful 4 story homes in Clinton Hill for 1.3-1.6 million. Hard to see how they are going to get that, especially as there were very few people there.