Real Estate Market Will Be Fine by 2011
That’s what the National Real Estate Investor magazine says, anyway. Well, not fine, exactly, but they predict that another couple of years of “stagnant job creation and tepid economic growth” will yield better results come 2011. Dr. Rajeev Dhawan — one of the economists they consult — “is projecting real gross domestic product growth at…
That’s what the National Real Estate Investor magazine says, anyway. Well, not fine, exactly, but they predict that another couple of years of “stagnant job creation and tepid economic growth” will yield better results come 2011. Dr. Rajeev Dhawan — one of the economists they consult — “is projecting real gross domestic product growth at a rate of 1.4% in 2008, decelerating to 0.5% in 2009 before beginning an anemic recovery to growth of 2.2% by 2010,” they write. Banks will rebound, they say, and oil prices will drop, and maybe inflation will fall, and, after the rough patch, the world of real estate will recover. Even if that scenario plays out, here’s the big question: Since the New York City market took longer to fall, does that mean it’ll also lag on the way back up?
Economists Expect Real Estate Recovery in 2011 [NREI]
Sign of the Times. Photo by respres.
Legion is right on
Miss Muffett: You are right that if prices went down to 2004 levels most everybody would be OK except for the folks who bought in the last couple of years and are trying to sell (flippers etc). Otherwise, hopefully you will get a great deal and having sold at the top of the market renting and waiting will have been a great call. I will send you some good mojo in hopes it works out.
What, that was your greatest post ever at 11:18. Nicely done.
Wow, Legion, thanks for the recitation of David Lereah press releases circa 2005 combined with the wisdom of a.m. talk radio. Here’s what I think:
1. You should definitely buy. If you already own, pick up a couple of income properties.
2. The rest of us (the mere idiots) will wait.
Listen up,
Weren’t we having this same discussion about housing bubbles and doom and gloom and all that business, a year ago?
As I stated then, the housing market in nyc is not tanking or crashing or anything of that sort.
We are in an economic slowdown, that’s it. People still need to buy homes to live in, and guess what, the population is growing here in nyc.
Perhaps you will not see 20% increases but you will definitely not see a depression of biblical proportions as the same old assclown has been predicting here for over 2 years.
Here are some soboring numbers, 2nd quarter GDP was POSITIVE 3.3%. What does that mean? That means that the American economy is continuing to grow. 1st quarter was something like 0.9% and last quarter of 07 was something like 0.2%. What does that mean? That means that there is a trend away from a bottom in late 2007.
Now factor in the fact that we have acutally WON in Iraq. Yeah I said it, because you liberal poseurs are loathe to even think of it. Factor in that oil prices are bound to come down now that our fellow Americans have finally figured out that driving around in a giant Tonka toy is not the smartest way to get around town at 4 dollars a gallon. Factor in that productivity continues to increase and that the mortgage “meltdown” has come and gone and been factored in to the Nth degree already. Sorry to say, history will show no Bush recession.
2008 will be a slow growth year, but not a depression as the local assclown constantly predicts.
So buy a home if you are in the market, consider a more marginal area for a good deal. There is one right in the center of Brooklyn, which is the last place to get a brownstone for a reasonable price and any moron can see is surrounded by gentrifying areas. Figure it out.
No doubt, we have a rise in unemployment and some inflationary pressures. But what do you silly chicken littles expect? Constant decreases in these numbers? Economies are clyclical. Talk to me when we go double digit like they routinely do in good ol Europe. You know, that place so many libs aspire to be like. lol.
Anyway, my last bit of advice is to consider the past. If you had bought during the last big housing downturn in the early nineties you would have gotten that brownstone in Park Slope for about 500K, which seemed like a fortune then. Just something to think about while your landlord is knocking your 1 bedroom roach motel looking for his 2K.
P.S. Two last minute deal breakers:
-an Israeli attack on Iran (which is totally due)
or
-a problem with the new Darth Vader; Vladimir Putin
which would cause worldwide oil instability and send fuel prices soaring, in the short term, but have the postive long term effect of finally breaking us of our foreign oil fix habit.
Like Lechacal, we sold and and are now renting, for a variety of reasons. So, while we sold in a high market, it does indeed matter to us what the market does since the difference of several 100K or even 50K makes a big difference in our lives (we are not bankers, and our salaries are relatively modest). That said we are not “waiting for the bottom” per se – we’ll buy if we see the right house but every broker tells us we are lucky to be in the position we are in. I’m not sure if prices will go below 2003 levels – who really knows? – it would not shock me, but even if they went to 2004-05 levels, it would be a lot less than what they’ve been of late, and yet most sellers would still come out fine.
Wow o wow! I’m am in your fucking heads. All of you have an obsession with The What.
The last 30 posts was about me. You dumbfucks are so sidetrack you can’t see the baseball bat coming your way! First it was the Chinese “thinking about dumping Us debt and noe Fannie Mae and Freddie Mac are INFUCKINGSOLVENT! These two institutions account for 40% of the Mortgages made in America. I know what you thinlking “What does that have to do with Brownstone Brooklyn”. Well assfucks you will find out….
U.S. Rescue Seen at Hand for 2 Mortgage Giants
http://tinyurl.com/69kbtj
“WASHINGTON — Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said.”
Oh Fuck me!!!! If you are a large holder if US debt and seeing the inflation ramp job. Why in the fuck would you hold US Treasuries??!!! This a baaaad thing because interest rates are going to the fucking moon. This will kill the Mutant Real Estate Asset Bubble.
Now to the Asshats. I see something real funny. You always circle of fucks going after me, let’s see why. They are White Middle aged closet Homosexuals that they was coming to the “Ghetto” for colonization. These Asshats make a grave error in moving here. Now The What has been banging on these motherfuckers and they can’t stand it!
If you can’t see we are in big trouble, I can’t help you……
The What (Fuck all of you)
Someday this war is gonna end…
Like clockwork Biff.
“Remember If what I’m saying is wrong then ignore it.” – DOWhat.
That is so priceless and consummate DOWhat philosophy – I’ll tell you when I’m right and let’s all ignore me when I’m wrong.
“we might touch something deep inside that little wizened heart and bring forth the blossoms of love and compassion and companionship.”
bxgrl, I have a whole new image of DOWhat. I’ll forever think of him as the Grinch Who Stole Brownstoner! However, I don’t want him to change. He honestly brightens my days. But alas, both DOW8000SP800 and The What stopped posting yet again at the same time. Amazing!
You can’t actually short sell a house. It’s done in the stock market and works like this:
1. Borrow a stock from someone (brokers arrange this pretty easily)
2. Sell the stock into the market and collect the proceeds.
3. Buy it back later and return it to the person you borrowed it from.
If the price went down in the meantime, viola! You made money. If the price went up, you lost money.