Where and When Will The Market Bottom?
Most people interviewed in this weekend Times article about New York’s real estate market finding its bottom seem to agree that prices so far have come down about 25 percent; how much further they have to fall is a matter of more varied opinion, though it sounds like 10 or 15 percent would be a…
Most people interviewed in this weekend Times article about New York’s real estate market finding its bottom seem to agree that prices so far have come down about 25 percent; how much further they have to fall is a matter of more varied opinion, though it sounds like 10 or 15 percent would be a consensus range. Which means we could be closer to the bottom than past cycles would suggest. Even if the New York market were to end up being 35 to 45 percent down, he said, to the degree we’re seeing deals done at 30 to 32 percent down anyway, it’s not very far away. What may happen, some speculate, is that the correction, however brutal, could be accelerated into a shorter time period that last go-round. It’s possible that rather than seeing price declines spread out over a six-year period, this time it could be concentrated in a two-year period, said Ingrid Gould Ellen, co-director of the Furman Center for Real Estate and Urban Policy at NYU’s School of Law. That possibility, along with the fact that there are plenty of folks waiting in the wings wanting to buy, has the brokerage community cautiously optimistic that the real estate business may avoid having a lost decade. After all, what broker’s need to get paid are transactions more than high prices.
Looking for Bottom in N.Y. Real Estate [NY Times]
Photo by simplerich
“the fear tactics of Team Bull are just as objectionable to me as the callous glee of some members of Team Bear”
I know…I know. Sometimes my glee gets the best of me. I should be more empathetic but it’s hard.
***Bid half off peak comps***
“Now now, Jebby. Don’t go over the top. That was a baaaaad anology. Lower prices are good for Brooklyn. You go at us, we’ll go at you.”
Damn BHO when I was gonna chill this Asshead Jebby got me all cranked up again!!
Hey Jebby tell us what the Rainbow taste like, ROTFLMMFAO!!!!!!!
***Bid half off peak comps of Jebby house***
Since Benson invoked me, let me say that I do understand the implications the current market crash has on broader issues – believe me, I am feeling those as my extended family is personally suffering major reversal of fortunes due to stock market losses. Also, my older child is in public school and the threat of budget cuts are scary in a very real way. Believe me, I get it. That said, since the NYC RE market shot up 300% in 10 years, it also seems very plausible that it can decline 50% in the next few, and still leave us at price levels which historically would have been more “normal” – that is, for example, a Bklyn brownstone that sold for $1million in 1999, then shot up to $3million in 2008, could sell for $1.5million and still represent a healthy appreciation for the original buyer. I’m not saying that this is exactly what will happen – no one knows – but the fear tactics of Team Bull are just as objectionable to me as the callous glee of some members of Team Bear. What does seem very clear to me is that many, many sellers/brokers are still putting extremely unrealistic asking prices out there, and the full impact of this crisis is going to take a while to really show in the RE market as the drying up of cash will really start to happen this year (last year, remember, many people still got decent bonuses, which most likely will not be the case for most this year…)
“BHO, This is the market peak????? You have no idea what I paid.”
Yoooooouuuuuuu saaaaaaaaiiiiiiiid “this will be my last Brownstoner post”.
“What a goal, root for housing to go down so you can get a better price. Let’s root for more people to die at home so the Emergency Room won’t be busy if you neeed it.”
Now now, Jebby. Don’t go over the top. That was a baaaaad anology. Lower prices are good for Brooklyn. You go at us, we’ll go at you.
Team Bear…We Go Hard We Go Hard…
***Bid half off peak comps***
Hannible, maintenance includes a building’s underlying mortgage as well as other things mentioned above, such as heat, taxes, insurance, and repairs. They are partly tax deductible. Some of the cheapest I have seen are in Jackson Heights on coops that formed in the 1920s and paid off their mortgages long ago. They run about $300 to $500 a month, depending on the size of the apartment. If you own your own brownstone in Brooklyn, you will also pay for these things, in addition to your mortgage. The cost is very similar if you compare it on a per-square-foot basis.
There’s a reason so many houses have the original detail we all love. For decades, they were places to live, not showpieces or investment vehicles. A return to that philosophy is not a bad thing, although it may be quite painful for some.
“I closed on my house in 11215 on Friday, half block from the park. Both attorneys, had 2 closings in Brooklyn every day last week. ”
Lies and more lies. I know the seller was happy to get a sucker eh, buyer for that property.
Things are selling.
There sure are just not as many “Things”.
Think this will be my last Brownstoner post as I find it really depressing. The amount of negative energy and lack of civic discourse is sad.
Oh just because we are not smoking crack the whole world must agree with you?? Grow a pair!!
There’s a lot of good that could be done with the energy that would make Brooklyn a better place.
Brooklyn was allraedy a better place before the Asshead moved in, jacking up the prices!
What a goal, root for housing to go down so you can get a better price.
Yep that’s the plan stupid…
Let’s root for more people to die at home so the Emergency Room won’t be busy if you neeed it.
Let’s start with you, you whinniny POS!
It’s that attitude of being deaf to others suffering that enabled all the sub-prime mess to take place. Lend money and not care who borrows, because you’re going to pass it on to someone else to deal with.
That’s what Wall Street has done Dumbass!
Get outside and sweep the sidewalk in front of where you live, water a tree, do something.”
I’ll take a leak in front of your house or steal your gates, post the address…
Wa Wa Wa Wa stop crying and “enjoy” your house while you still “own” it..
The What (Jebby tasted the rainbow)
Someday this crying is gonna end…
Yes jebby. Leave it to BHO to take your good news and twist it into something hurtful. Best to leave that alone. I closed on a house the week that Lehman crashed and it was nerve-wracking but I haven’t looked back. I get nervous as we all do about the larger implications of our financial/economic crisis, but the “value” of the house is only a small factor in a sea of many other more important things. Congrats again and do stick around as we need more folks who are able to be human to each other as opposed to the ones who try to inflict pain for fun.
Jebby,
You will also notice from the data someone linked above that 11215 saw an UPTICK in sales volume in the last Quarter of 2008. This is good news and goes against every single thing the “bears” talk about here.
All one has to do is go to streeteasy.com and plug in 11215 and see that sales are happening all the time.