Open House Picks: Six Months Later
Comment: Still not much to celebrate. Open House Picks 3/13/09 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Still not much to celebrate.
Open House Picks 3/13/09 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
I agree Sebb – now if only Joe Wilson (and his constituents!) could learn that!
Woops, forgot one other key reason: Case-Schiller, and other metrics that indicate continued weakness.
DIBS – why do I think prices will continue to weaken in NYC? Several reasons:
– Employment may weaken further
– NYC is lagging national trends – entered slump later, so it may take longer to exit
– interest rates are likely to rise
– many analyses I’ve read indicate continuing weakness
– bubble was so huge that a 20-25% correction (probably where we currently are) has further to go
– all trends point to continuing downward pressure
Real estate prices skyrocketed for years, and they will plummet for years — even if economic conditions improve.
It makes no sense for mortage payments to be two or three times what a property would rent for — none.
co-op prices in BH are still quite high -for quality units, large or small. Not like 2007 to be sure but not a disaster either. People still want to live in a nice place and getting financing on an $800,000 two-bedroom co-op in a solid building is a lot more possible than a jumbo loan for a $2,000,000 or $3,000,000 house. You almost have to have all cash to buy one of those multi-million dollar homes. I hear Banks aren’t doing too many jumbos these days.
Miss Muffett : We all need to become a little kinder to each other. Thanks for your input.
“Then prices decreased in real terms until 1998”
instead of
“Then prices decreased in real terms until 1988”
sorry
Even if prices stabilize they will remain at a certain level for quite a while which translates to a decrease in real prices. The sweet point to buy is when then prices start to go up and inventory is high which can take several years.
In the previous bubble, prices stabilized in nominal terms in 1992 four years after the peak in 1988. Then prices decreased in real terms until 1988 before going up again. That is 10 years after the peak. This bubble however was much bigger and economy/unemployment far worse so it might take 15-20 years from now before a bottom. It sounds crazy but this is how RE works. The longer a buyer waits the better.
Hey, where are the tons of sub-800k 3br co-ops in BH? I’m looking for those listings! can you link a few?