Open House Picks: Six Months Later
Comment: Hardly a seller’s market but at least deals are getting done. Open House Picks 8/21/09 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Hardly a seller’s market but at least deals are getting done.
Open House Picks 8/21/09 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
I’m baaaaaaack…
DIBS/11217,
When prices and rents fall, they do so first MOM (as I have said they are doing) and then YOY (as I haven’t yet said they are doing but they will).
Even though NY Case-Shiller started falling on a monthly basis from Jun 06 (market top), it still rose on an annual basis (YOY) but at a slower and slower pace for six months before it became negative (falling YOY). The same thing is happening to rents. It’s called FALLING. A slowing YOY is called deceleration, a negative rate of change, f” < 0 if you took calculus.
Rents are falling, not rising.
***Bid half off peak comps***
Okay, I just read the NYTimes piece.
It clearly says rents have risen 1.6 percent since Jan 2009.
(This is surprising to me, as I keep hearing people talk about falling rents.)
It also clearly says that this rise is “a slower [rise] than during any 12-month period since mid-1994.”
I guess this report fuels both the bears and the bulls.
Though it is modest, it is nevertheless a rise. That’s good news for the bulls.
On the other hand, it is the slowest rise since 1994. That’s good news for the bears.
Plus, given some of the other economic downturns, perhaps the fact that rent has risen at all may indicate that rent has a ways to fall, in order to keep pace with the already decreased economy. That supports the Bears.
On the other hand, the fact that housing has held up while other economic factors have fallen shows that housing in NYC remains strong. That’s good news for the Bulls.
In other words… who the hell knows?!
That’s my reading of it.
Ironballs,
10 years ago I rented a really nice upper brownstone duplex in CG for $1,800 that was below market because I had a nice landlord. My neighbor’s now rent generic garden apartments for that. Rents are not where the were 10 years ago. They are much higher and they will be much higher still in 10 years.
Rents are back where they were ten years ago all over NYC.
Sales prices are more than double what they were ten years ago.
The day of reckoning is near.
Re the comment about the President St house backyard: the size of the front yards does not take away from the size of the backyards. That row of houses was originally built 45′ deep with about 55′ deep backyards – some houses have extensions; the front yards are about 35’deep. That house was maintained but based on the vintage of the bathroom I’m guessing the plumbing needs a serious upgrade; probably the electrical too. Even so, I think the buyer got a great price. It wasn’t on the market very long before it went to contract.
The point is that rents are up when you’ve been saying they’re down.
Posted by: 11217 at February 19, 2010 4:40 PM
http://streeteasy.com/nyc/rental/611375-coop-191-berkeley-place-park-slope-brooklyn
Ironic, because this particular 1 bedroom in park slope has undergone multiple price cuts and has yet to find a renter.
Pigeon,
I really don’t think so. I mean YES rent increases are slowing. That would be expected in The Great Recession, no?
Actually I would have *thought* that rents would have decreased, but taken as a whole, they have actually increased. Just 1.6% but that’s still going up.
It really seems pretty cut and dry to me. But the fact that they rose at all (even a small amount) during a pretty bad year is shocking enough that even BHO can’t seem to believe it when the facts are printed quite clearly.
‘Recession Slows the Increase in Rents in the Region’
That headline seems designed to obfuscate.
So does the following sentence:
“[R]ents on apartments and houses in New York City and the surrounding region rose at a slower pace in the past year than during any 12-month period since mid-1994.”
BHO says this sentence reflects a weakening housing economy, stressing the phrase “slower pace.”
DIBS and 11217 say the sentence reflects a stengthening economy, stressing the word “rose.”
Who is right?
My guess is the article is designed to obfuscate, and to gather controversy, as controversy sells.
Or am I missing something?
I am not a finance bird.
“Recession Slows the Increase in Rents in the Region”
Here is the headline.
The important words here are “INCREASE IN RENTS” but apparently you are not only dense but have trouble with functional reading.