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]
that’s funny…i bought in the “crashing market”…(late 2006) and i couldn’t be happier with my purchase.
i’m paying less than i ever would in rent for a similar size apartment.
Bob Marvin, where you ever upside down?
At least that homeless guy is smart enough not to buy in a crashing market. Two years ago he would’ve been given a 5/1 option ARM on the spot.
I think the homeless guy that stands outside of the ace supermarket on 7th has more informed things to say about real estate than 99% of you on this thread.
A 20% correction with 10% down (or less) is complete financial apocalypse. No two ways about it.
10:38,
If you look at a brownstone as a place to live, rather than as an investment, 9 years isn’t that long.
Besides, what proper old house renovation/restoration takes less than 9 years [or is EVER finished?]
I agree completely with Bob Marvin, but 10:32 is right. As much as possible, be prepared for one of the 3 D’s and don’t overextend yourself too too much when buying property or choosing finishes in your renovation. Even in the top notch neighborhoods, once you calculate closing costs or broker’s fee if you use a broker to sell, if you have to sell sooner than planned you will lose money. It just means a return to normal, people buying what they can afford. I hate anything bad to happen to the economy but these corrections and cycles that humble us all a bit, it can be a good thing. People were really getting obnoxious all over this country with going into debt to build $100K kitchens and obsessing over resale-value because they were flipping.
Why on earth did you buy late in 2006 when everyone was saying the market was going to go south?
Some day this war’s gonna end. . . .