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.
I thought the C-S numbers were for NYC specifically…
lech — you’re saying that a reverse migration requires a steeper drop in manhattan prices. lemme spin it this way: take someone like me who wants to pay a certain amount for a 2BR — I consider that a basic living space, but I can’t afford it in manhattan. if I can get it there, I will, before I consider a 3BR in Brooklyn.
wasder…the C-S numbers are for the country as a whole and will not be representative of any particular city or neighborhood.
Dave I hear you. Peak is in the eye of the beholder.
I got my house for about 25% less than the ask but that means nothing as we know. In the end I think that I paid an amount that will prove to be inflated but not so much so that I will regret it forever. I assume I bought a little ways into the downslope but who knows. Had I really been concerned about such things I wouldn’t have bought at all but done a BHO and crammed my family into a too small space while waiting the crash.
and that was May, 2007.
What about the Case Schiller numbers that BHO is so fond of? They show the peak in 07. I am just curious how the actual peak is arrived at…
wasder…peak was when I paid $820k for a really nice place in Bed Stuy…then sank another $100k into it and am still happier than ever!!!!
Wasder: My guess, for the Brooklyn neighborhoods that are most discussed on this board, is that in hindsight we will see that prices peaked summer 2008. I don’t know of any consensus on this point.
> “gentrification is permanent”
That was a joke, right?