Recovery Sooner Than Later?
The market is supposed to be a forward-looking discounting machine. It’s supposed to price in what’s expected to happen over the next few months and years. Is the market perfect at this? No. If it were, there would be no real opportunity to do well in it. The market is, however, very good at incorporating…
“Don’t be jealous I’m young, handsome and own my own home cobblehiller.”
And Ghey..
The What
Someday this war is gonna end..
“My company too is making some big new decisions to readjust to the economy, scaling back, restructuring, etc”
My company in the last two weeks has just hired an additional employee, gave out hefty xmas bonuses equal to one week’s salary for every year you’ve worked at the company, and we’re having a huge holiday party next week at one of the nicest restaurants in the city.
What was your point exactly?
11217 what location? In a bad housing market people become pickier.
Don’t be jealous I’m young, handsome and own my own home cobblehiller.
My company too is making some big new decisions to readjust to the economy, scaling back, restructuring, etc. Just about every vendor I speak to when we have to explain our cutbacks says that they are getting this from all over. And my boss keeps reminding me that this is just the beginning. We are working hard to responsibly weather this crisis, and I think many, many others are doing the same. This inevitably will affect the housing market in NYC at all levels, and for a while, since the cuts have barely begun.
How old are you 11217? 25? 30? Do you still live at home?
I just did the 15-20 times rent calculation on my place and according to that I bought my place at EXACTLY 15 times the annual rent. I mean, to the dollar assuming what I believe it would rent for, even taking a slight discount on the rent figure to account for the ailing economy.
Never actually done that calculation before just to see.
The economic problems are way beyond the stock market by now. Even if the market recovers in 3 months all the companies that have and are about to lay off people and cut projects are not going to reinstate those positions overnight. Slowly, over years, but not for a long time. My fortune 500 company has announced that it will be making major changes to the structure of the company which will entail large layoffs. Every company I know of has either alreaddy laid off people or has announced palns to do so in April. Those positions are gone for years to come–and those people won’t be buying brownstones, and may need to sell the ones they own.
When my parents bought their house in the 80’s the interest rate was 12%.
Housing may very well be cheaper next year, but interest rates are eventually going to go up significantly.