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]
if prices go down 20%, we’ll be where we were in late 2006.
sucks if you bought very recently, but otherwise no big deal.
here’s a link with a chart for 30-year mortgage rates from the 1970s to now…
http://www.phoenixrealestateguy.com/30-year-mortgage-rate-trend-rate-chasing/127
As many have already noted, a correction of 15% or even 20% would NOT be a problem because values have been overinflated for a few years now. I see no cause for panic.
do any of you know where interest rates were in the 80s??? I suspect not. The high rates; in the teens for those of you who are too young to remember, were the primarty cause and certainly the accelerant of the downturn.
keep trying, eventually you’ll be able to spell ‘doubled.’
Prices have doubl in just a few years. A price correction, even without a recession, is inevitable. A buying frenzy was created by these insane increases. If the increases go away, the frenzy abates.
Prices have doubles in just a few years. A price correction, even without a recession, is inevitable. A buying frenzy was created by these insane increases. If the increases go away, the frenzy abates.
I have been predicting a major decline here for years BUT the truth is no one knows…..including the NYT.
One month ago this was an easy prediction, now with the Fed lowering and possibly a raise in the amount of conforming loans – the possibility exists for home prices to stay where they are in NYC.
In my part of Park Slope – northern/lower, reslae condo prices seem to have maintained their high levels and Brownstones are still appreciating.
it is just a matter of time 5-7% reductions in each of the next few years is all it takes
oh it’s different here i forgot.
my ass