How's real estate market in your area?

Wouldn't a prolonged economic downturn pull down even the most desirable locales, ie, manhattan? Picture 3 times as many panhandlers on the streets, violent crimes skyrocketing as people get generally desperate, police force cutbacks as tax receipts begin to fall off etc.

Think pre-Giuliani NYC. When NYU was just a safety school :)
 
Well, the highly-desirable areas typically aren't affected by the crazy mad-rushes and downturns very much. That's because there's only a limited supply of these homes and a limited supply of buyers who can afford such places. As such, the prices of these homes seem to be much more steady because regardless of what the economy looks like, there will always be a small group that will buy these homes.

In my area, these are the $1mil+ homes that have appreciated at the normal inflationary rate of about 7-8% the past 10-years. This is about 1/2 of the appreciation of the 1st-time median-level homes, which saw increases of double the historic rate and doubled in just 5-years instead of 10.

However, in the past couple months, median-prices have dropped by 12%, yet the $1mil+ homes have only dropped by 1-2%. It's the naive 1st-time buyers that are over-extended with interest-only ARMs that are gonna take the hit the most.
 
Quote from illiquid:

Think pre-Giuliani NYC. When NYU was just a safety school :)
More...

All Guliani did was reclassify the crime stats. Watch episiode 3 of The Wire, it's called massaging the numbers. Fascist Rudy did blatant staititical engineering such as not classifying break-ins without any real theft as burglaries and downgrading several crimes into misdemeanors. Crime in NYC was already decreasing under Dinkins and the real cause was gentrification. You can watch it happen with Harlem right now.

I foresee NYC experiencing a run of the condos because pricing for those has gone completely out of whack and with money supply getting tighter, the inventory may become too much. Commercial real estate is also under pressure as consumerism from the house ATM stops. But NYC has a diversified economy, with the dollar low, toursim and foreign investing can keep it up.

Bloomberg threw in a lot of city funds & incentives at NYC real estate. If the same trend continues, there won't be much problems. Other factors are in play also, such as NYU's and Columbia's perpetual expansion. And like I said, if you live in NYC take a big notice of the corners. I think that is a sign.
 
Northern New England coastal here. Good proxy for remainder of New England. Sales have fallen off a cliff. Total buyer/seller standoff but no great inventory build due to limited land. Realtor death. According to Wiki there are 2109 people in my town and 962 households. My village, 1 of 5 in the town, has only 400 people. 30% of the town's land is water. Reval just came out in the paper this morning. Total valuation -- over 2B :p They had to collapse the mill rate from 14.15 to 5.05. I carry my dumpy real estate like a paper company -- what I paid for it -- not these pie in the sky valuations. If I dont meet the right stripper to leave it to, I'm definetly taking out a HELOC at the end and blow town with afterburners on. :cool:
 
I think Denver, Colorado has been flat for the last few years...perhaps you could get 2 or 3% a year...but not with a Condo.

We are not looking to move and really do not care as Colorado is a hidden gem of beauty...nothing quite like it anywhere.


Quote from a529612:

I've heard even the "invinsible" California market is starting to crack.

How's the real estate market in your area?
More...
 
Quote from ElectricSavant:

I think Denver, Colorado has been flat for the last few years...perhaps you could get 2 or 3% a year...but not with a Condo.

We are not looking to move and really do not care as Colorado is a hidden gem of beauty...nothing quite like it anywhere.
More...

my secy is trying to move to castlerock. if she can sell her 600k-650k place here, she can buy a TH there for like 250k or less.
 
crackedback wrote:

I have one really smart one that has been selling and re-buying his home every few years. Has 1.4-1.5 million in the bank from all the transactions. Works the account to meet his PITI and slowly has increased the balance. Will walk away when it all blows up.
More...


Could you explain this in more detail, please. Sounds interesting.
 
Quote from stereo70:

crackedback wrote:




Could you explain this in more detail, please. Sounds interesting.
More...

sounds stupid. the guy will likely get a cap gains bill plus an IRS bill for any debt foregiveness. guys takes 1.5m outta the market & still tries to cheat for more... get yourself a new client, idiots like that are sink holes.
 
QQQBALL wrote:

sounds stupid. the guy will likely get a cap gains bill plus an IRS bill for any debt foregiveness. guys takes 1.5m outta the market & still tries to cheat for more... get yourself a new client, idiots like that are sink holes.
More...


Just curious, brutha...I'm more curious as to the mechanics of the transactions.
 
You must log in or register to reply here.
Back
Top