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]
At least Park Slope real estate is still appreciating.
That’s all I care about.
You are some dead mother fuckers! This shit is about to go boom. Sad…
The What
Someday this war is gonna end….
If anyone took the time to read the NY Times article, you’ll notice that the headline is totally misleading.
In the 5th paragraph the reporter state that rents in NYC are dipping – NOT sale prices.
The article then piles-on a bushel of apples-and-oranges anecdotes about sales in the suburbs & rest of the US. Declining rents may be a bellwether about potential price declines, but that’s all they are -an indicator.
What the article lacks is a single hard number to back up its headline claim – that sale prices are in-fact dipping in the city.
It never ceases to amaze me that the Times does such shoddy reporting on a topic so many New Yorkers love to discuss!
Finally, kudos to the commenter who pointed out that interest rates in the late 80’s were several times higher than we see today. That, plus the crime & financial instability of the city stemming back to the 70’s made NYC a far different place in which to live – and yes, invest. I doubt that most ‘brownstoners’ here would be living in Brooklyn if we had to share the F train with The Warriors… when crime, poor city services & high interest rates make their return, then it’ll be time to run. But until then, a correction in prices will be just that – a correction. A crash doesn’t seem likely looking at the demographic trends of NYC vs the rest of the country.
-Ed
5:02- your not a moron if you win!
This is a pointless argument – there is no correct answer!
No 6:07 no ignorant at all – NYC is not immune from the economic forces at work across the country and every single argument you are making about the “no-brainer” of investing in RE was made in all the markets that have subsequently declined.
The point is….that IF RE declines in value (which it can) it is NOT better to own – obviously you believe that RE does not decline over any timeframe – because if you acknowledged that under some timeframes RE CAN decline, then you’d have to acknowledge that under some circumstances – owning can be a losing proposition.
i do not think that you can get the same apartment renting as buying.
i have a 2000 sq ft condo with a backyard with absolutely everything.
with our tax break, we are paying about $3200 for it a month.
also, we decorated, did built-ins, etc.. to make it amazing which we are enjoying, so even if i could find the same space as a rental, i would never invest in it, so our day to day lives wouldn’t be as nice.
fyi – i bought in late 2006, and know for sure that it’s gone up because others in the building have sold for a really nice profit.
6:03 – and those are EXCELLENT reasons to own which is presumably (one) of the resons why owning was the correct choice FOR YOU.
Actually 6:04 – this website is hardly one about or geared toward RE investing – it is a community BB with a leaning toward RE.
Last I checked, 99% of those on this board live in NYC, 6:05.
So your post is ignorant, at best.