Open House Picks: Six Months Later
Comment: Gulp! Open House Picks 5/30/08 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
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I can’t wait to buy that perfect brownstone for the price of a egg McMuffin.
Miss Muffet, what about the corner four-family house with garage in Fort Greene in the open house picks above that’s dropped from $2.5 to $1.6 million? That’s quite a drop. Curious to hear your opinion of house and price.
Prices falling much further will exact a huge toll on the global economy. That doesn’t mean it isn’t going to happen, I know. It means they will use every tool at their disposal to stop the decline. It wont just be interest rates. A big plaster will be placed over the problem in the form of intervention from several different angles. Unfortunately this will exacerbate the problem in the future, but they are going to do it.
Before the future arrives American ingenuity, hopefully, can intervene. This might be possible in the form of tech developments in alternative energy. The drain to the Middle East could stop and America could have manufacturing and technology to export again.
Or America could go the way of Russia.
AND FURTHER MORE… BROOKLYN IS DIFFERENT 🙂
AS WELL AS THE FACT THAT… BROOKLYN IS NOT THE SAME:-)
AND BROOKLYN IS GOOD!
Oh come on Architerrorist! You KNOW you want to go house hunting with her this weekend. Think of the fun.
Whether or not Muffy’s argument is right or not is beside the point. Talk about entitled – she just wants the perfect house in the perfect place and it damn well better be in her price range. Her posts smack of spoiled little girl holding her breath until she gets what she wants – or ELSE! Maybe she will get what she wants (i.e, score a prime 3rd Street Slope House for under $1 million), or maybe she won’t and will EXPLODE!
I get the mortgage rate issue, but I’m not sure that gets us very far. Yes prices can stay higher for the same mortgage payment with the lower rates. But the issue is that people have begun to realize that during the boom their payments outstripped prudent financial spending. So simply getting back to the same outlay as before is not an acceptable solution. And dropping the rates from 6 to the mid 4’s, while helping significantly, dosn’t even match the comparable drop in asset prices.
Brooklyn’s different. 🙂
even with very good mortgage rates, prices will keep going down. My guess is we will not see upside movement until 2011.
Mortgage rates are 5.5% and probably going to 4% if you believe 1)That inflation is just about nonexistant and 2) The fed will continue to buy treasuries as the best way to inject liquidity into the sysytem.
That 4-5% mortgage range SIGNIFICANTLY increases the affordability of homes. Remember, about 94% of the population is still employed.