Old Undeveloped Article Ideas: New York Market
The following is an old, undeveloped article idea that was never completed but contains a still-relevant perspective on the New York Market. The prose is raw, but the content interesting.
File name: New York Market 11/6/2008 2:15PM
If median condo in Manhattan from 1989 – 1997 could be purchased for $220,000 why is the same condo worth $1 million in 2008? Supply is hirer, demand is lower, historical invincibility is gone, expectations for future performance are negative, credit is tighter, leveraged mortgages no longer exist, unemployment trends are negative. People say “New York” is unique just like they used to say real estate never goes down and real estate is local. The current argument for New York holding up is the demand from abroad for property due to the weak dollar. These people are the dumb money that steps into the breach falsely under the impression that just because something is on sale it is a good deal.
File name: New York Market 11/6/2008 2:15PM
If median condo in Manhattan from 1989 – 1997 could be purchased for $220,000 why is the same condo worth $1 million in 2008? Supply is hirer, demand is lower, historical invincibility is gone, expectations for future performance are negative, credit is tighter, leveraged mortgages no longer exist, unemployment trends are negative. People say “New York” is unique just like they used to say real estate never goes down and real estate is local. The current argument for New York holding up is the demand from abroad for property due to the weak dollar. These people are the dumb money that steps into the breach falsely under the impression that just because something is on sale it is a good deal.
I live in Westchester County along the coast, fancy schmancy, lots of Wall St $ albeit less! We sold in May 2008 after buying under prevailing market in May 1999. Did very well and are now renting and looking for opportunities. To date, there's a lot of the same attitude about why my town is different.
The realtors talk about $1MM homes like they're cheap even though they need kitchen and bath reno's etc. OK, schools are nationally ranked but you pay for that thru taxes.
Bottom line, there has been some begrudging reductions to homes that have been sitting but many sellers still have the idea they're entitled to 2006 prices.
As it happens, a lot of the overseas money is departing and heading home. Layoffs and recalls of expats seems to have picked up steam this past year.
Anyway, the process is slow but inevitable it seems. Sales are down and we're already into summer. Think it's going to be a long one for those waiting on the "recovery."
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