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]
5:55…you are dead wrong. I’m sorry for those who have already heard this before, but I bought my studio for 250K in November 2006 and sold in December 2007 for 339K.
That’s a fact.
Can you please tell me how I could have made 89 thousand dollars in those 13 months renting besides turning it into a brothel?
FACT = every person who bought a home in the last 18mo that has subsequently declined in value would have been better off renting.
I love how you all eat right out of the New York Times’ hand.
Every one of you believes whatever it prints.
It could say tomorrow that new figures were released that Brooklyn real estate went up 100% in the first month of 2008 and you’d all be whistling a different tune.
Although there would still be the hum in the background of the sourpusses who say the world is coming to an end…
Can you all try to form an opinion of your own please?
All you do is take this schlock and form it as fact in your brain. Make your own decision about the market. You probably know just as much as these so called “experts”
Were they predicting snow today?
Nope. Not a flake.
Get my point?
But 5:43 you are comparing apples to oranges…
The fact that most people don’t save is IRRELEVANT to the question of which costs more renting or owning.
We are discussing FINANCE not psychology. – what “most” people do does not change the (non subjective) ‘numbers’
Most people who are owners here DON’T view their home as an investment first.
It’s the renters and negative nancys that try to spin it that way, 5:47.
5:35 – you going to fit in that 1br apartment TEN years from now????
Plenty of people couldn’t and they had to move and then (if they could) rented out their small apartments at a LOSS for years (1991-95) or they sold for a LOSS and just moved on. Just because someone isnt a “flipper” doesnt mean they can stay in their PRIMARY (non-investment) property indefinetly . Which is why Benson is correct- it can be a VERY big mistake to view your primary residence as an investment first – it is a place to live 1st and an investment 2nd.
Simple facts:
MOST renters in NYC live paycheck to paycheck and have little savings.
MOST owners in NYC are more financially stable and have savings.
Believe that?
You should.
Oh come on, 5:38….
We ALL know that renters, by and large in this city DO NOT SAVE.
Maybe you do, but the very nature of the NYC renter, probably means they spend every dime. That’s why they are renting in the first place.
Because I guarantee you, if you took a poll you will find that MOST people in NYC don’t own because they have NOT SAVED for the down payment.
Not because they think it’s financially better to rent, as so many on here claim.
If it’s so much better to rent because you get to save SO MUCH MONEY, then why the hell does everyone I meet say…”I wish I could buy something, but I’ve got no money for the downpayment!!!!”
Get real.
Rent is not an investment. Neither is mortgage interest. The investment is the downpayment and principal, if you buy, and the money you don’t put into downpayment and principal if you rent.
In a rising market, it is hard for retail investors to beat real estate. The leverage means that if the property goes up 5%, your investment makes 25%.
In a falling market, it works the other way around. 20% drop next year and you’ve lost all your equity. The stock market isn’t going to zero next year.