Local Housing Market Headed for the Trash Can?
Real estate experts are convinced that the New York region’s housing market is about to undergo a serious correction, according to an article in yesterday’s Times. Analysts expect the coming bust to be significantly worse than it was in the early ‘90s, particularly in New York’s suburban markets. Nevertheless, Manhattan—and by proxy, pricey Brooklyn—has so…
Real estate experts are convinced that the New York region’s housing market is about to undergo a serious correction, according to an article in yesterday’s Times. Analysts expect the coming bust to be significantly worse than it was in the early ‘90s, particularly in New York’s suburban markets. Nevertheless, Manhattan—and by proxy, pricey Brooklyn—has so far mostly weathered the national housing meltdown, and the decline in values here isn’t expected to be as bad as in our outlying suburbs. During the year that ended in November, prices in the NY metro area fell 4.8 percent, according to Standard & Poor’s/Case-Shiller Home Price Indices—a drop that pales in comparison to Sun Belt cities, many of which saw double-digit declines. Still, economists predict that house prices in the region will drop by at least 15 percent in the current correction. Ouch.
Home Prices Start to Dip, Recalling ’90s Slump [NY Times]
Hmmmm. Preoccupation with the local market. Yeah, I’d say vaseline will soon be sold out.
Priceless photo.
all units went down in the last housing crash.
not just studios.
2 bedrooms went down the most.
that’s why i’m asking what the point was, other than to single out someone who just said they purchased a studio in clinton hill, and that 12:07 wants to make them feel like shit.
12:15, what kind of loan do you have thats tied to fed funds? FF is currently 3% plus 2.75% margin is 5.75%. It’s less than 6%, but not by much. What happens when rates rise?
Perhaps the poster’s point was that last time real estate went down, studios were hard hit? And perhaps if prices go down here, that could happen again?
12:07…studios also did incredibly well during the housing run-up (double digit gains for quite a few years). So what was your point?
Anyone with good credit and an ARM that is going to reset will be. . . DOING JUST FINE.
Mine will jumpo by 2.75 above the 2 year fed funds rate. . or way under 6% as things stand now.
That was a way better move than getting a 30 year fixed and paying more every month.
Yes it’s more than 4.75 or 4.875 I got a few years ago, but not bad at all.
All the doom and gloom-sayers obviously don’t have a clue about how these mortgages really work.
If you are in a subprime loan or got scammed somehow, it’s not fun. but that’s not most of the Brownstoner types.
And no! I’m not a broker or whatever and I;m not saying prices will rise forever–just trying to give a dose of reality.
Seriously, someone needs to go by The What’s bunker and see if he’s okay. Dead silence. Creepy…
listen, if a 20% drop = financial catastrophe for you, you overextended and bought a place you couldn’t afford.
I’m sick of feeling sorry for people who can’t keep their wallets shut if they can’t afford something.