there was a bidding war for JR's house. it sold above list price.
new york city real estate price erosion
- Thread starter the gardner
- Start date
there was a bidding war for JR's house. it sold above list price.
I live in nyc, in my opinion the real estate drop experienced by other parts of the country is just beginning here. The reason is simple:
NYC real estate is tied directly to wall street. Wall street performed terribly last 6 month as everyone know but the yearend bonus wasnt THAT BAD at least for the average white collar joe working there due to the first 2 quarters. This year however is a complete different story, it will be a disaster. Not to mention less hiring, and more layoffs.
We will begin to see real estate prices to drop and continue throughout the year, i dunno if we will ever reach a panic run to the door type situation, but prices are definitly coming down.
Rentals are a different story, usually yes rents are tied directly to the real estate market but manhattan is a special case, i dont think rents will drop as much as the real estate prices. This was true in the 1990s when i could bought a nice condo on park ave for about 400k. Too bad i was still in high school
NYC real estate is tied directly to wall street. Wall street performed terribly last 6 month as everyone know but the yearend bonus wasnt THAT BAD at least for the average white collar joe working there due to the first 2 quarters. This year however is a complete different story, it will be a disaster. Not to mention less hiring, and more layoffs.
We will begin to see real estate prices to drop and continue throughout the year, i dunno if we will ever reach a panic run to the door type situation, but prices are definitly coming down.
Rentals are a different story, usually yes rents are tied directly to the real estate market but manhattan is a special case, i dont think rents will drop as much as the real estate prices. This was true in the 1990s when i could bought a nice condo on park ave for about 400k. Too bad i was still in high school
you don't think dropping rates will help keep prices up? i would think in an area like nyc where there is always demand, it might even increase when interest rates are low. i bet prices in some high demand neighborhoods prices will barely fall near term, will take a while. real estate in general doesnt fall like an overbought stock, it takes time. things will just sit on the market longer for quite some time before noticeable price drops occur.
Sam Zell called the top in office properties, and Rogers called the top in 'premier' residential.
a great great website for the full examination of the nyc real estate market is
therealdeal.com
the real deal
great articles and stats etc etc
g
therealdeal.com
the real deal
great articles and stats etc etc
g
Rents will drop when students cannot afford to drop $X thousand to rent a closet in NYC.
NYC basically depends on financial service bonuses and the trickle down effect. Once heads begin to roll when employment situation becomes evident you will see an exodus out... Is it possible to see 50,000 MBAs trying to find the same exact hedgefund job in a 10 square mile area?
There was one time I saw a panic in RE in NYC. That was right after Sep 11 but it seemed wealthy people came in to scoop them up quickly.
NYC basically depends on financial service bonuses and the trickle down effect. Once heads begin to roll when employment situation becomes evident you will see an exodus out... Is it possible to see 50,000 MBAs trying to find the same exact hedgefund job in a 10 square mile area?
There was one time I saw a panic in RE in NYC. That was right after Sep 11 but it seemed wealthy people came in to scoop them up quickly.
Quote from newguy05:
will begin to see real estate prices to drop and continue throughout the year, i dunno if we will ever reach a panic run to the door type situation, but prices are definitly coming down.
Rentals are a different story, usually yes rents are tied directly to the real estate market but manhattan is a special case, i dont think rents will drop as much as the real estate prices. This was true in the 1990s when i could bought a nice condo on park ave for about 400k. Too bad i was still in high school
True but that was a different context altogether.
the greatest threat to nyc real estate is terrorism... to have most of your money in an asset located in nyc is really not a very good idea
one direct hit to indian point nuclear plant on the hudson on a day with a steady southerly wind would forever render all nyc real estate valueless.............
indian point is only 35 miles north of times square
one direct hit to indian point nuclear plant on the hudson on a day with a steady southerly wind would forever render all nyc real estate valueless.............
indian point is only 35 miles north of times square