Great article from Noah, apparently the rich are feeling rich and spending their money on real estate. Article is full of quotes from the uber-brokers, like these: "With 1 European investor, I currently have in contract 3 brand-named condo deals: $7.5m, $13.3m and $15m. All selected during a 2 day shopping marathon." There's nothing like Manhattan to make you feel like a poor schlub. "A recent... [more]
Great article from Noah, apparently the rich are feeling rich and spending their money on real estate. Article is full of quotes from the uber-brokers, like these:
"With 1 European investor, I currently have in contract 3 brand-named condo deals: $7.5m, $13.3m and $15m. All selected during a 2 day shopping marathon."
There's nothing like Manhattan to make you feel like a poor schlub.
"A recent International market survey determined that residential values in Manhattan are -18% below London, -54% below Moscow and a whopping -94% below Hong Kong. "
Well, it's time to bargain hunt! (sarcasm)
"seem to be commanding prices 10% to 15% higher than they were at the beginning of the year"
Noah's data backs this all up nicely.
"I am having a bidding war on a near $10M apartment. With 4 bids over ask in 5 days!"
So, my upshot on this is why are these investors looking all at once? If you look at Noah's chart, they weren't playing in October. So why the sudden interest? Did inventory suddenly appear?
Or are they thinking the stock market hit a plateau? Or do stocks even play into this? Bonds?
QUESTION: Why NOW?
FULL ARTICLE: http://www.urbandigs.com/2011/04/high_end_what_the_managers_are.html[less]
Response by ieb
almost 15 years ago
Posts: 355
Member since: Apr 2009
stock market topping off, money market at 0%, maybe inflation - prime re looks pretty good.
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Response by ieb
almost 15 years ago
Posts: 355
Member since: Apr 2009
also, weak dollar, huge wealth in China (Trump says all material used in his buildings construction now comes from China. We manufacture NOTHING here!), I could go on....
Maybe it's a bubble, but what's on the other side?
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Response by West81st
almost 15 years ago
Posts: 5564
Member since: Jan 2008
"...seem to be commanding prices 10% to 15% higher than they were at the beginning of the year"
I think IEB may have nailed it. USD is down 12% vs. EUR since January 7th. That might answer the bold-cap "Why NOW?" question. In Euro terms, a jump of 10-15% in dollar prices would be no move at all.
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Response by AvUWS
almost 15 years ago
Posts: 839
Member since: Mar 2008
Don't forget a lot of smart people with a lot of money still make big mistakes. Part of making that much money also relies on a good bit of luck/being-in-the-right-place-at=the-right-time, but has a tendency to make those people think that all the success was due to them.
I don't know what will happen. I think it would be healthy for the use to break up TBTF institutions and make our financial sector slower. It would also hurt NY economy quite a bit. But maybe we start making things in this country again?
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Response by ieb
almost 15 years ago
Posts: 355
Member since: Apr 2009
There’s a new movie version of Atlas Shrugged out today and although it’s getting poor reviews it’s a good time to reflect on what Rand says.
Her forecast has come true. It’s not the workers that have gone on strike it’s the business owners. We shrugged and made a deal with the Chinese and the winners are the elites both here and in China.
Nothing wrong with it just have to realize what’s happened.
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Response by sledgehammer
almost 15 years ago
Posts: 899
Member since: Mar 2009
Yahoo! Irish carpenters are feeling bubbly again! Time to put back the Guinness at open houses!
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Response by Oxymoronic
almost 15 years ago
Posts: 165
Member since: Dec 2007
AvUWS - to make things in this country once more would require either rampant protectiost import/export policy or a drop in the minimum wage to something less than $5 an hour and a dismantling of organized labor.
when you set an artificial floor on wages and you have 10mn unskilled or mis-skilled workers sitting unemployed, you have to start wondering whether anyone actually took Econ 101.
sledgehammer - I'd put out the vodka or the pilsner. If it's one nationality who ain't buying it's the Irish!
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Response by jim_hones10
almost 15 years ago
Posts: 3413
Member since: Jan 2010
Wait---is sledgehammer actually w67thzzz? Irish carpenter reference.
stock market topping off, money market at 0%, maybe inflation - prime re looks pretty good.
also, weak dollar, huge wealth in China (Trump says all material used in his buildings construction now comes from China. We manufacture NOTHING here!), I could go on....
Maybe it's a bubble, but what's on the other side?
"...seem to be commanding prices 10% to 15% higher than they were at the beginning of the year"
I think IEB may have nailed it. USD is down 12% vs. EUR since January 7th. That might answer the bold-cap "Why NOW?" question. In Euro terms, a jump of 10-15% in dollar prices would be no move at all.
Don't forget a lot of smart people with a lot of money still make big mistakes. Part of making that much money also relies on a good bit of luck/being-in-the-right-place-at=the-right-time, but has a tendency to make those people think that all the success was due to them.
I don't know what will happen. I think it would be healthy for the use to break up TBTF institutions and make our financial sector slower. It would also hurt NY economy quite a bit. But maybe we start making things in this country again?
There’s a new movie version of Atlas Shrugged out today and although it’s getting poor reviews it’s a good time to reflect on what Rand says.
Her forecast has come true. It’s not the workers that have gone on strike it’s the business owners. We shrugged and made a deal with the Chinese and the winners are the elites both here and in China.
Nothing wrong with it just have to realize what’s happened.
Yahoo! Irish carpenters are feeling bubbly again! Time to put back the Guinness at open houses!
AvUWS - to make things in this country once more would require either rampant protectiost import/export policy or a drop in the minimum wage to something less than $5 an hour and a dismantling of organized labor.
when you set an artificial floor on wages and you have 10mn unskilled or mis-skilled workers sitting unemployed, you have to start wondering whether anyone actually took Econ 101.
sledgehammer - I'd put out the vodka or the pilsner. If it's one nationality who ain't buying it's the Irish!
Wait---is sledgehammer actually w67thzzz? Irish carpenter reference.