The bad news: NOT for you!!!! Real estate market still pricey Despite a recent drop in home prices, the New York metropolitan area remains one of the least affordable housing markets in the nation, according to a study released today. The study by the Washington-based Center for Housing Policy said that in 2008, the New York area is the second most expensive housing market in the nation, after San... [more]
The bad news: NOT for you!!!!
Real estate market still pricey
Despite a recent drop in home prices, the New York metropolitan area remains one of the least affordable housing markets in the nation, according to a study released today.
The study by the Washington-based Center for Housing Policy said that in 2008, the New York area is the second most expensive housing market in the nation, after San Francisco. According to the study, the median home price in the New York area was $455,000 in the fourth quarter of 2008, down about 13 percent from $525,000 in the third quarter of 2007, the previous time the group looked at home prices.
The New York area moved up from the seventh most expensive area in 2007, as other high-priced markets, especially in California, experienced price declines of more than 30 percent.
The region’s home prices have not declined nearly as much as in the nation’s as a whole since the housing market began imploding several years ago. Prices in the area remain about 78 percent higher than they were in 2000, compared with an average of about 43 percent higher for the nation, according to the Standard & Poor’s/Case-Shiller home index.
http://www.northjersey.com/realestate/Real_estate_market_still_pricey.html[less]
Response by Rhino86
over 17 years ago
Posts: 4925
Member since: Sep 2006
New York lags because the finance industry is a lagging industry and coop boards slow down the process.
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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008
The article discusses the entire NYC metro area, which includes NJ, upstate, LI, and Connecticut. So using co-op boards as an excuse for the fact that prices have barely come down is weak since there are hardly any co-op boards outside of NYC.
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Response by Rhino86
over 17 years ago
Posts: 4925
Member since: Sep 2006
The prices of homes in the burbs are directly related to the thousands of stay/go decisions families in Manhattan make when the first and second kids roll around. I would like to see the Connecticut stats in the coming year. I know first hand from my parents and other family that Westchester prices are down meaningfully. I feel pretty confident that 13% doesn't capture the change in places like Larchmont and Scarsdale.
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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008
"The prices of homes in the burbs are directly related to the thousands of stay/go decisions families in Manhattan..."
That is not entirely true. Most people in the burbs have never lived in Manhattan.
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Response by Rhino86
over 17 years ago
Posts: 4925
Member since: Sep 2006
Nothing is entirely true. That said, prices are made by the marginal buyers. The lower prices go here in Manhattan, the fewer families will need to leave. You may have seen in the NYT this weekend renters are moving back to Manhattan from Brooklyn... This is different, but related. 2 beds in Manhattan were way out of reach for many...becoming more within reach. That goes for rents and purchases. I have heard many examples.
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Response by Rhino86
over 17 years ago
Posts: 4925
Member since: Sep 2006
Listen we won't know until we know. The finance industry only turned to shit in late 2008. If you think Greenwich, Scarsdale, and upscale NJ are not driven at the margin by finance, I just have to disagree.
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Response by skippy2222
over 17 years ago
Posts: 202
Member since: Jun 2008
What do you mean by marginal buyer? I live in a town in NJ where the lot prices start at well over one million. These areas are dead from a real estate standpoint. Nothing of note is moving. These areas were totally driven by finance professionals. People that are not in finance who have the money to move to the 2-2.5 million or more house don't want to move because they are worried that it will be worth less next year and because they can't pull their equity out of their 1 million dollar house.
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Response by Rhino86
over 17 years ago
Posts: 4925
Member since: Sep 2006
I was trying to concede a little by using the word marginal. I realize that metro NY is driven by finance. Alpine seems to disagree.
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Response by Dwayne_Pipe
over 17 years ago
Posts: 510
Member since: Jan 2009
"the New York metropolitan area remains one of the least affordable housing markets in the nation"
We haven't even started declining yet...
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Response by Dwayne_Pipe
over 17 years ago
Posts: 510
Member since: Jan 2009
"New York lags because the finance industry is a lagging industry"
Since when? In the last crash, we went FIRST. You're just too young to remember. Do you know why we're lagging this time? BECAUSE WE ARE. Sometimes, life is random. There is no syllogism that prescribes that "finance is a lagging industry hence New York will also go last". If you have some empirical evidence to the contrary, please post it here.
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Response by aboutready
over 17 years ago
Posts: 16354
Member since: Oct 2007
data lags.
rhino, schools.
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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008
How slow are you people?
The NYC metro area started declining well after the rest of the country. NYC's drop, when it came, was FASTER than the rest of the country.
Comparing the total declines at this point is stupid... NYC metro still has a ways to go.
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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008
Remember, this was the same alpine who said there was NO decline just a few months ago.
New York lags because the finance industry is a lagging industry and coop boards slow down the process.
The article discusses the entire NYC metro area, which includes NJ, upstate, LI, and Connecticut. So using co-op boards as an excuse for the fact that prices have barely come down is weak since there are hardly any co-op boards outside of NYC.
The prices of homes in the burbs are directly related to the thousands of stay/go decisions families in Manhattan make when the first and second kids roll around. I would like to see the Connecticut stats in the coming year. I know first hand from my parents and other family that Westchester prices are down meaningfully. I feel pretty confident that 13% doesn't capture the change in places like Larchmont and Scarsdale.
"The prices of homes in the burbs are directly related to the thousands of stay/go decisions families in Manhattan..."
That is not entirely true. Most people in the burbs have never lived in Manhattan.
Nothing is entirely true. That said, prices are made by the marginal buyers. The lower prices go here in Manhattan, the fewer families will need to leave. You may have seen in the NYT this weekend renters are moving back to Manhattan from Brooklyn... This is different, but related. 2 beds in Manhattan were way out of reach for many...becoming more within reach. That goes for rents and purchases. I have heard many examples.
Listen we won't know until we know. The finance industry only turned to shit in late 2008. If you think Greenwich, Scarsdale, and upscale NJ are not driven at the margin by finance, I just have to disagree.
What do you mean by marginal buyer? I live in a town in NJ where the lot prices start at well over one million. These areas are dead from a real estate standpoint. Nothing of note is moving. These areas were totally driven by finance professionals. People that are not in finance who have the money to move to the 2-2.5 million or more house don't want to move because they are worried that it will be worth less next year and because they can't pull their equity out of their 1 million dollar house.
I was trying to concede a little by using the word marginal. I realize that metro NY is driven by finance. Alpine seems to disagree.
"the New York metropolitan area remains one of the least affordable housing markets in the nation"
We haven't even started declining yet...
"New York lags because the finance industry is a lagging industry"
Since when? In the last crash, we went FIRST. You're just too young to remember. Do you know why we're lagging this time? BECAUSE WE ARE. Sometimes, life is random. There is no syllogism that prescribes that "finance is a lagging industry hence New York will also go last". If you have some empirical evidence to the contrary, please post it here.
data lags.
rhino, schools.
How slow are you people?
The NYC metro area started declining well after the rest of the country. NYC's drop, when it came, was FASTER than the rest of the country.
Comparing the total declines at this point is stupid... NYC metro still has a ways to go.
Remember, this was the same alpine who said there was NO decline just a few months ago.