bubble?

Well Forbes says you are right about the "bonuses":http://www.forbes.com/lifestyle/realestate/2005/11/23/luxury-homes-bonus-cx_sc_1123home_ls.html

don't know about bonuses. but prices don't seem to be softening much as far as i can see. interesting "article in the Columbia paper":http://www.columbiaspectator.com/vnews/display.v/ART/2005/11/23/4384362a52a81

the market may stop rising so fast, but it's not going down either. i've watched friends wait for years to buy and they get sadder and sadder every year. interest rates are only going higher, so buy now or prepare to be sad.

Agreed, because that's a historical truism for NYC apartments. If you're not in a pinch to sell, they almost always appreciate. However, I just can't believe that we're going to be totally immune from what becoming a pretty clear national softening. I suspect, especially with all of the new developments, that we'll begin to feel it. I wouldn't avoid buying right now, but I also wouldn't get into a bidders war over something.

These are the times when people should be a bit more cautious. IMHO

I have put together a site (free) that takes all the assumptions we make about appreciation/return/pricing, etc. and tries to come up with "equivalent rent" or what the "investment" is really costing us. A place selling for $2.5M (a 2BR in my building, assuming 4.5% appreciation and a 12% return in your alternative portfolio -- must get those Wall Street bonuses) means that it is COSTING you $12.5K a month. Now, tell me there isn't a bubble. BTW, the site http://www.sheynkmania.com/housemath

sheynkman - good site. really eye opening. looks pretty clear that those wall street bonues won't be going into housing based on the returns...

sheynkman, that's nice and all, but dghess is right -- interest rates are only going higher, so buy now or prepare to be sad.

Ouch...where is that edit feature

Flmaozzzzz. Too bad i want on se 4 yes ago.

Wasn't. Damn phone

lol took me a while to see it said 4 years instead of 4 days. I should stop drinking

yeah what made it more confusing at first was when Ahart's post said "4 minutes ago"

Wait, alanhart, are you making fun of dghess or agreeing? Um, how do higher interest rates not correlate to lower prices? Somehow magically prices go up when interest rates go down, but the inverse does not apply? dghess, your "sad friends" who have been sitting the sidelines for years are suddenly going to be the ones with plenty of cash in their pockets. Oddly enough, they'll still be buying the same apartment, though, because even with a lower price, the monthly nut will be the same, because that's how Americans roll, all about borrowing as much as you can as long as it's the same monthly payment...

If it weren't for the low interest rates right now, prices would be going even lower. Actually, it's pretty much the only thing that is offsetting higher RE taxes, cause guess what, those ain't never goin' down...

All-cash buyers are going to enjoying nicer and nicer apartments...while leveraged buyers are going to end up in just about the same thing...