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]
I’d like to know WHAT person in NYC who has bought property in the past is not now living in an apartment worth more.
In some cases, double, and in some cases 20 times more.
Please let me know how that might be incorrect.
Do you realize that you are arguing that Renting is a smarter move than buying?
That timing the market is a better strategy than a long term investment.
Unbelievable – morons.
Are you all day traders?
5:06 – You have figured in NOTHING in terms of the lost value of your 115,000 downpayment (another $380 a mo at 4%), NOTHING for real estate taxes (abated true but still be be some tax), NOTHING for the closing costs to SELL your non-appreciating apartment, NOTHING for repairs and maintainace for your apartment; (and while it isnt clear who pays on the rental at 126 4th)- generally the LL pays for UTILITIES, which you have again figured in ZERO allowance.
Again if the apartment doesn’t appreciate – you’d be way ahead renting.
5.16 PM;
I have NEVER posted on Curbed. I challenge you to cite one post from me on Curbed.
Benson
Benson and Sneaky Pete are both known idiots…I mean commenters from curbed.com
Guess they got bored over there, but if you are familiar, don’t worry.
Everyone over there thinks they are as ignorant as we do over here.
5.04 PM;
Neither renting NOR owning your primary home is an investment. In both cases you are consuming an asset. All of the folks above who talk about how much money they made on their primary house fail to account for a number of things, such as: the interest they paid on the money they borrowed, the property taxes they paid, etc. Study after study has shown that when you analyze these factors, and consider the time value of money, a primary house winds up costing you money.
The question, therefore, is which option (owning versus renting) consumes less money, and that is what is being discussed above.
A true investment is owning a rental property, which hopefully provides a decent net return. However, note that the CAP rate for most rental investment property is now about 6%. Not bad, but not as good as the average return of the stock market.
Benson
No person who lived on the Lower East Side 10 years ago or far west Hells Kitchen or Alphabet City or Prospect Heights or PLG would have guessed they’d be sitting on a million bucks today.
But they are if they bought.
I’m just saying…while you don’t know for certain, there is a great chance that one of the greatest cities in the world, which happens to lie on an island probably will not succumb to the pressures of oversupply that most of the country adheres to.
You don’t believe me….why does it cost a million bucks for a shack in Hawaii??
Oh but let me agree 4:50 – if a 1br in the Novo will be worth 1M within 10years then you are 1000% correct – it definitely pays to buy.
Just curious what are you predicting regarding interest rates and local wages/income – that will support such appreciation.
Hey Benson:
I’ve got a book for you!!
It’s called…MOST PEOPLE BUY HOMES TO LIVE IN, NOT SOLELY AS INVESTMENTS.
It was a Times bestseller.
Give it a read sometime.