"Real Wave of Pain Just Beginning"?
In one of the grimmest articles we’ve read to date on the US housing market, the Market Oracle scoffs at Treasury Secretary Hank Paulson for saying on Friday that “the housing market is at or near the bottom and that the subprime mortgage situation is not a “serious problem.” Which begs the question, How serious…
In one of the grimmest articles we’ve read to date on the US housing market, the Market Oracle scoffs at Treasury Secretary Hank Paulson for saying on Friday that “the housing market is at or near the bottom and that the subprime mortgage situation is not a “serious problem.” Which begs the question, How serious a problem is it? Deadly, thinks fund manager Kenneth Heebner:
The real wave of pain and foreclosures is just beginning… would expect that housing prices in 2007 will decline 20% in a lot of markets…What you are going to see is the greatest price decline in housing since the Great Depression.
If the doomsday scenario does play out across the country, the $64,000 question will be to what extent is New York City (and Brooklyn) dragged into the mess.
Is It Too Late to Get Out? [Market Oracle]
Photo by billypalooza
let’s say for a second that this doomsday scenario plays out and nyc real estate DOES fall 20% this year, with the average apt. price of over 1 million, this would mean the average would be 800K.
with so many wealthy people in the city and now in brooklyn, someone with a 2 million dollar brownstone might find their place worth 1.6 million or whatever.
do you honestly think that is reason to say the sky is falling???
oh and sylvia you never cease to amaze me with your ignorance.
“They were saying that all three of them are unique in terms of their real estate markets, that all three of them have real estate markets that are impervious to national trends. Which is wrong. ”
But the facts say otherwise. London, Paris and NYC prices continue to rise or remain unchanged while in general prices in other parts of these contries fall. You are confused, you’ll get over it.
I am willing to risk recession if it means the yuppies and ibankers leave the city and take their trendy lounges with them.
Of course real estate prices in NYC will fall in the next few years. Where else could they go? The run up has been remarkable.
Who knows what exactly will be the straw that breaks the camel’s back. Market psycology is immposible to predict. But whatever it is, it’s bound to happen eventually. The question is not “if” but “when?”
Aside from all of the other reasons to hate Atlantic Yards, the 6,000 apartments that are part of the plan would, I’d imagine, be a big enough change in supply to have a bit of a depressive value on the local market. Ratner’s making so much money off this that a dip in local real estate is one step away from irrelevent . . . to him.
Blah, Blah, Blah.
Most of the dow movement is because of US companies that have interests abroad. US based companies that do business only in the US are in for a drubbing.
Patrice, Heebner is a mutual fund manager. He’s out of building stocks, true, and does have a new fund that does a little short selling, which mutual funds shouldn’t really do, but mostly he votes against sectors by getting the hell out of them.
Anyone notice the Dow going over 13,000 last week. We are not yet in a recession.