wsj non-sense about euro hitting nyc real estate

does seem like faulty logic and more of broker babble that in this day and age, makes the agent stating it appear way too salesy..

just wrote my two cents on the topic, which was discussed a few times in past 3 months

http://www.urbandigs.com/2010/06/europes_souring_taste_for_manh.html

in short, I like to look at how this may or may not be affecting the bids; the buyers. so to me, i see two forces at play given where we came from and this situation:

1. decline in confidence/neg wealth effect
2. decline in purchasing power

Urban, I'm taking a wait and see on whether the Euro exchange rate has any impact. What does concern me is if there's another genuine flight to safety away and away from any investment other than Treasuries and Gold. It is starting to feel like we may have another leg down in Credit. I don't think we've seen the full extent of what's going on with regards to European banks and Sovereign debt.

having ur revenues in the depreciating currency and ur costs in the appreciating currency is how to lose money....not make it.

"I don't think we've seen the full extent of what's going on with regards to European banks and Sovereign debt. "

I dont think we will know the full extent, including US banks, for many years. Gold is not selling off. Its the only asset class to hold on. Telling.

WOW! This WSJ article totally contradicts this reuters article:
http://www.reuters.com/article/idUSTRE65D4LS20100614

Dueling unsubstantiated opnions. love it.

Why don't we just worry about what US Citizens are doing in real estate? If the Europeans are buying extra expensive real estate or not doesn't change you and me and what we can pay.

You can talk about safe/hedging... but ultimately part of where the foreign dollars came from was just that the foreigners felt rich and had tons to spend.

You can talk about financial strategy all you want, but folks in a panic about their financial situations are a lot less likely to make large investments of any sort.

Depends on the level of anxiety in Europe...

given rioting in the streets (including over France changing retirement age) it sounds prety anxious to me. I can't imagine this is the environment that supports folks buying vacation properties in the US.

This is Europe. There is always rioting in the streets.