http://www.businessinsider.com/new-york-citys-housing-markets-are-on-the-verge-of-plunging-2011-11
Before the crisis, In 2005, the National Association of Realtors released the results of its annual home buyer survey which found that in 2004, 23% of all purchases were for investment and another 13% were “vacation homes.”
...Then, the Mortgage Delinquency Crisis Begins to Unfold:
Tens of thousands of NYC borrowers were stretched out to the max during the bubble years of 2004-2006 with onerous mortgage payments. Since many had put down no more than 5-10%, any downturn in prices was certain to cause severe problems. Compounding the stress was the fact that countless speculators had purchased one or more properties with negative cash flow hoping that rising prices would bail them out...
...Once prices leveled out and then started declining, speculators were the first to bail out. Roughly 60% of the 15,000 foreclosure filings in NYC in 2007 were on 2-4 family homes purchased by investors/speculators....
...When my first article about Queens appeared in June 2010, I published a chart showing that the delinquency rate for Queens borrowers more than 60 days late in their mortgage payment had climbed from 3.5% at the end of 2007 to 6.1% a year later. These statistics came from Trans Union -- the credit reporting firm – and its massive database of credit records. What startled me was that this rate had soared to 11.2% by the first quarter of 2010.
I researched this further and found that for the boroughs of Brooklyn and the Bronx, the rates were almost as bad..."
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Response by ProInNyc
over 14 years ago
Posts: 28
Member since: May 2011
good read
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Response by needsadvice
over 14 years ago
Posts: 607
Member since: Jul 2010
Please stop referencing "Business Insider" like a single word they say is true. It is NOT.
It's founder is the shady Henry Blodget.
"Henry Blodget (born 1966) is an American former equity research analyst, currently BANNED from the securities industry, who was senior Internet analyst for CIBC Oppenheimer during the dot-com bubble and the head of the global Internet research team at Merrill Lynch. Blodget is now the editor and CEO of The Business Insider, a business news and analysis site, and a host of Yahoo Daily Ticker, a finance show on Yahoo."
"In 2002, then New York State Attorney General Eliot Spitzer, published Merrill Lynch e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published. In 2003, he was charged with civil securities fraud by the U.S. Securities and Exchange Commission. He agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement."
My mother said "Once a liar, always a liar".
She's right.
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Response by West34
over 14 years ago
Posts: 1040
Member since: Mar 2009
In another thread not too long ago there was discussion of how bad the deliquency rates are in Queens. I think it was an article on Fed data that sparked it. Same data set showed Manhattan as having very LOW delinquency rates.
Moral of the story - Queens is a shitstorm. Manhattan isnt.
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Response by Socialist
over 14 years ago
Posts: 2261
Member since: Feb 2010
I'd be willing to bet that the delinquencies in Queens are mostly confined to lower income areas like Jamaica and LIC.
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Response by malthus
over 14 years ago
Posts: 1333
Member since: Feb 2009
Business Insider does not "say" anything. They are a news aggregator that pulls articles from other websites. As if it would matter anyway. So I guess you have to go figure out who the founder of minyanville is, and dig up his history in order to discredit the work of one of its contributors.
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Response by rb345
over 14 years ago
Posts: 1273
Member since: Jun 2009
A lot of homes were sold in Queens and Brooklyn to unsophisticated buyers, at inflated prices,
and often in need of improvements that buyers could not afford. Some were also sold with loan
payments that exceeded buyers monthly incomes.
The sellers were reverse socialists: from each despite their disability; to each according to
their greed
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Response by huntersburg
over 14 years ago
Posts: 11329
Member since: Nov 2010
so the sellers shouldn't have sold their home even though the buyers came with the cash?
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Response by notadmin
over 14 years ago
Posts: 3835
Member since: Jul 2008
seems like NYC has the longest REO pipeline in history, well above what the longer legal process in the state justifies.
so... are bankers avoiding to foreclose on NYC homes so that their own home prices don't go down? LMAO!
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Response by GraffitiGrammarian
over 14 years ago
Posts: 687
Member since: Jul 2008
There's nothing in this story that hasn't been fully reported and backed up in other media. Regardless of what you think of the publisher, the data here all look valid.
Here's a listing that illustrates what is happening in Bklyn. No offense to anyone here who may be associated with this listing.
This is a good address, in Bklyn Heights, with a very high maintenance for a relatively small square footage. The listing price has dropped from $425k to $325k to $280k -- and my guess it is still overpriced considering the $1,340 maintenance.
The only properties in Bklyn that seem to beholding their value are newly built condos.....and how long will that last?
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Response by cccharley
over 14 years ago
Posts: 903
Member since: Sep 2008
God Graffiti what a huge differential in price. Then again this is just one example of the price jump and a studio can almost be the size of this one bedroom. The M is very high for what it is.
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Response by Sunday
over 14 years ago
Posts: 1607
Member since: Sep 2009
The maintenance might be high, but at least the building has 2 elevators. Oh wait, the apartment is on the first floor.
good read
Please stop referencing "Business Insider" like a single word they say is true. It is NOT.
It's founder is the shady Henry Blodget.
"Henry Blodget (born 1966) is an American former equity research analyst, currently BANNED from the securities industry, who was senior Internet analyst for CIBC Oppenheimer during the dot-com bubble and the head of the global Internet research team at Merrill Lynch. Blodget is now the editor and CEO of The Business Insider, a business news and analysis site, and a host of Yahoo Daily Ticker, a finance show on Yahoo."
"In 2002, then New York State Attorney General Eliot Spitzer, published Merrill Lynch e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published. In 2003, he was charged with civil securities fraud by the U.S. Securities and Exchange Commission. He agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement."
My mother said "Once a liar, always a liar".
She's right.
In another thread not too long ago there was discussion of how bad the deliquency rates are in Queens. I think it was an article on Fed data that sparked it. Same data set showed Manhattan as having very LOW delinquency rates.
Moral of the story - Queens is a shitstorm. Manhattan isnt.
I'd be willing to bet that the delinquencies in Queens are mostly confined to lower income areas like Jamaica and LIC.
Business Insider does not "say" anything. They are a news aggregator that pulls articles from other websites. As if it would matter anyway. So I guess you have to go figure out who the founder of minyanville is, and dig up his history in order to discredit the work of one of its contributors.
A lot of homes were sold in Queens and Brooklyn to unsophisticated buyers, at inflated prices,
and often in need of improvements that buyers could not afford. Some were also sold with loan
payments that exceeded buyers monthly incomes.
The sellers were reverse socialists: from each despite their disability; to each according to
their greed
so the sellers shouldn't have sold their home even though the buyers came with the cash?
seems like NYC has the longest REO pipeline in history, well above what the longer legal process in the state justifies.
so... are bankers avoiding to foreclose on NYC homes so that their own home prices don't go down? LMAO!
There's nothing in this story that hasn't been fully reported and backed up in other media. Regardless of what you think of the publisher, the data here all look valid.
Here's a listing that illustrates what is happening in Bklyn. No offense to anyone here who may be associated with this listing.
This is a good address, in Bklyn Heights, with a very high maintenance for a relatively small square footage. The listing price has dropped from $425k to $325k to $280k -- and my guess it is still overpriced considering the $1,340 maintenance.
http://streeteasy.com/nyc/sale/603226-coop-100-remsen-street-brooklyn-heights-brooklyn
The only properties in Bklyn that seem to beholding their value are newly built condos.....and how long will that last?
God Graffiti what a huge differential in price. Then again this is just one example of the price jump and a studio can almost be the size of this one bedroom. The M is very high for what it is.
The maintenance might be high, but at least the building has 2 elevators. Oh wait, the apartment is on the first floor.