Stock Market Implosion................

What happens every time is people get so sick of the stomach churning ups and downs that they invest in real estate so they don't have a stock ticker to look at. It's love stocks hate real estate or hate stocks love real estate. Plus with all that selling cash is now available and will flow into something else.

flow into real estate...

https://urbandigs.com/blog/cracks-in-the-great-equity-credit-markets/

It was far worse in 2011 (at least so far in 2015)- all the 2011 correction did was hold up some negotiations short-term as buyers demanded discounts that sellers didnt want to give. You need a much larger correction to really impact NYC real estate.

Dow today $16459.
Dow 10/16/14 $16117

MMM up from last October
AXP down from last October. Up from where it was 3 weeks ago
AAPL up from last October but wasn't in the DOW last year
BA up from last October
CAT down from last October
CVX down from last October
CSCO up from last October
KO down from last October
DIS up from last October
DD split off CC, so someone will have to do the math
XOM down from last October
GE up from last October
GS up from last October
HD up from last October
IBM down from last October
INTC down from last October
JNJ down a pinch from last October. 3% yield
JPM up from last October
MCD up from last October
MRK up from last October
MSFT up a pinch from last October
NKE up from last October
PFE up from last October
PG down from last October
TRV up from last October
UTX down from last October
VZ down from last October; up from December
V up from last October
WMT down from last October

UNH up from last October

agreed crescent..however, a sharp/fast decline like we have seen this week can sometimes shock the system a bit. Its simply too early and we are in one of the slowest months of the calendar year. The reason its worth thinking that it could be more impactful is when you consider where we were two weeks ago and how far the market has reflated. High end already was slowing prior to the recent selloff. The mkt just hasnt seen anything but price appreciation, lower supply and higher deal volume progressively since 2010. So Im very curious how deal volume shapes up in Sept/Oct when we usually bounce noticeably. If we pause here and linger, I agree that its not enough to derail the fundamentals in Manhattan..as that would tend to be confirmation bias that longer term we are headed higher.

Manhattan condos will be down about 15-20% in the next three years.

and it has nothing to do with the stock market.

UrbanDigs:

1. given current medium and long-term economic trends the US
economy and its real estate sector are facing possible implosion

2. but at least for the time being the most desirable neighborhoods in Brooklyn
and its less desirable neighbor Manhattan are likely to hold value and keep
appreciating because their lifeblood is newly enriched tech millionaires, and
the US and world economies are far more likely to produce them in greater
numbers, and more quickly,, than developers can expand the housing stock

3. but remember what Louis the 14th said "Apres moi le deluge"

The blog on urbandigs is written by a novice for one blaming the Fed for its policies, and his prediction for Manhattan Real Estate.

Has anyone noticed how low interest rates have gone since this correction. Low rates are good for real estate.

buy low sell high

Any thoughts on the Chinese selling UST's?

If that's the case, Keith, then the Feds may have to usher in QE4.

This may be of interest: http://www.wsj.com/articles/australia-worried-about-rise-in-chinese-property-buying-1440654099

US Tobacco, good company. No smoke! Unlike the Chinese.

@Streetsmart, I wouldn't believe too much what I read about the Chinese and Australia.

Basically its a phony PR story being driven by politicians to explain away why Sydney and Melbourne have such high property prices.

In other words.....looks at the hand, nothing up my sleeve, blame the boogey man (or in this instance the big bad Chinese).

The reason Syd/Mel has high prices is every man and his dog in Australia wants to live in one or the other and NO ONE wants to live anywhere else, eg imagine America if you had a choice of LA (eg Sydney) and NY (being Melbourne in this story) and no one wanted to live in Colorado/Boston/Charlestown etc etc......

(you also have Miami eg Brisbane.....but only old people and Gucci loafer wearing people head to Brisbane/Gold Coast).

Until Australia grows up and starts having 20 different viable cities.......its always going to be expensive/the Chinese fault :)

Oh what a horrible week for the stock market, look where it ended up.

Yeah, right back where it was at the end of 2013 and down 10% from where it was 6 months ago.

major yo-yo this week

http://www.barrons.com/articles/as-stocks-fall-real-estate-may-be-the-best-defense-1441104699?mod=BOL_hp_highlight_2

Not sure about you guys, but eventually it will trickle down to NYC housing.

http://finance.yahoo.com/echarts?s=IYR+Interactive#{%22showArea%22:false,%22lineType%22:%22line%22,%22allowChartStacking%22:true}

That real estate index is right back to where it was 18 months ago.

buy low .... sell lower

http://www.cnbc.com/2015/09/02/amid-turmoil-wealthy-chinese-eyeing-the-us.html

The Chinese!