Prices are falling

Started by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006
Discussion about
and they have in the past...the 1994 story below made me laugh. http://query.nytimes.com/gst/fullpage.html?res=9901E7D71538F930A25751C0A962958260
Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

I've been watching two apartments in particular drift downward here on Street Easy. They just went inactive. I guess I'll keep sitting on my cash. Note to sellers: LOWER YOUR PRICES. Buyers ain't going to stuff your pockets anymore. Deal with it.

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Response by anonymous
over 13 years ago
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There is no reason to sell low if you can get high rent.

Most people in co-ops have good cash flow and will hold until they get the price they want. Not like condo buyers(flippers)in Florida, Las Vegas... I expect a lot more co-op listings
to go inactive.

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Response by anonymous
over 13 years ago
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I read somewhere that that's why coops hold their value better in down markets, not as many flippers. part of this is because it's a longer/more involved selling process but it's also a different type of buyer.

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Response by anonymous
over 13 years ago
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Maybe if you got out and earned a few more dollars instead of digging up articles from last century you would be able to afford an appartment now instead of waiting! I wish people on this site would stop whining!

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Response by anonymous
over 13 years ago
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No need to get defensive. There are many people who agree that real estate prices are falling and will continue to fall. That inlcudes many of my investment banker colleagues (I am an M&A Managing Director).

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

I think the guy who is 2 posts above me might be trying to sell his place hahaha, oh dear :)

Why work harder to earn more money when you can stay in the same job and get more sq footage? Got to love those market downturns :)

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Response by anonymous
over 13 years ago
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Yea & I think you will be able to buy apts in Manhattan in 2 years for 10%
of todays market!! hahahahahahahahahahahahahahahahahahahahahahahahahaha

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Response by anonymous
over 13 years ago
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I'd rather make rational statements rather than respond like a 4 year old. No one is expecting 90% drop. A potential 10% drop in prices = 30%-50% of most people's down payment to buy a home (the single biggest single investment for most people). A 10% potential drop is real money if you ever have to sell your home again down the road. People seem to forget the basic concept of leverage - its great when prices go up, but deadly if they go down and you have to sell for some reason.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

100% agree with the statement above me.

It's rather odd how people are so quick to jump on here and blast the whiners, but the market in NYC is in a DOWN cycle. You only have to look at this website to see the price drops that are happening - i surely can't be the only one seeing 10%+ price cuts on Manhattan apartments?

A 10% price cut on a $700k apartment is most if not all of your down payment evaporated if you just bought it, which means you have no equity in the place. Only a fool would laugh at the seriousness of such a situation.

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Response by anonymous
over 13 years ago
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um~if you can afford a 700k apartment you can afford a slight drop, unless you are trying to flip it~
and btw, the market is not going "down" sellers are just having to come to terms with REALITY.

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Response by anonymous
over 13 years ago
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What are you talking about? "The market is not going, sellers have to come to terms with reality"? What does that even mean? If sellers are having to come to terms with realistic prices, which they are, that specifically means the market for sellers IS in a downward cycle as prices achieved will be lower.

It's not quite a buyers market like it is in other regions, but it's on it's way to being one.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

As a buyer I can tell you that places coming down in price or that have been sitting on the market for a while - there's usually a reason. Either they were priced too high (sellers expected to get 20% over what they could have last year) or there's something quirky - unusually high maint fees, bathroom has neon green tile, far from subway, needs lots of work, etc.

Places that are priced more realistically to begin with and have decent features are being snapped up immediately.

In my experience the market is softening up but there is still a market. And this chicken little blanket statement is for the birds.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

As someone who is buying an apt in manhattan right now (closing in the next month or so), prices are definitely falling. However, I would say that most sellers are still holding relatively firm to certain pricing levels, and are unwilling to go below. It becomes a question of how much of the market is "motivated" (read: desperate). Yes, if the NYC real estate market was made up of mostly speculators/flippers, we would see very serious price declines over the next few years. I don't think that is the case. Also remember that NYC itself is a very varied market, which is why in many desirable areas (UWS, UES, Tribeca), you are not really seeing price declines. Sure, prices in the East Village and Clinton will fall a lot, but when you look at the prime areas that people truly want to live in, there hasn't been a huge influx of supply.

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Response by anonymous
over 13 years ago
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Your facts aren't entirely accurate. Supply is increasing significantly in "desirable areas" such as Tribeca. There are more new developments going up now than at any time in my last 8 years of living in the neighborhood. Just take a walk around. I am talking about very sizable buildings going up around PS 234. Read it for yourself in the NYT:
http://www.nytimes.com/2006/11/19/realestate/19cover.html?ex=1321592400&en=b9d59d8d2803aa70&ei=5088&partner=rssnyt&emc=rss

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Response by anonymous
over 13 years ago
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Your facts aren't entirely accurate. Supply is increasing significantly in "desirable areas" such as Tribeca. There are more new developments going up now than at any time in my last 8 years of living in the neighborhood. Just take a walk around. I am talking about very sizable buildings going up around PS 234. Read it for yourself in the NYT:
http://www.nytimes.com/2006/11/19/realestate/19cover.html?ex=1321592400&en=b9d59d8d2803aa70&ei=5088&partner=rssnyt&emc=rss

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

If coop apts in our building drop, we will buy another unit or two.
Seems like quite a few potential renters in Manhattan, last time I was on the sidewalk.

Manhattan, one of the greatest cities of the World.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

I thought you couldn't sublet co-ops? At least not long term?

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Response by anonymous
over 13 years ago
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some coop bldgs allow sublets.

as for the supply increasing in 'desirable areas', many of those are condos that start at around $1 million. If you're looking for something along the lines of a 'starter', i.e. one br at around $500k in a popular area, then supply is more limited. It all depends on WHAT exactly you're looking for.

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Response by anonymous
over 13 years ago
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Our small co-op would rather allow owners to sublet than sell their
units at discounted prices.

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Response by anonymous
over 13 years ago
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Response by anonymous
over 13 years ago
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buy at your own risk.

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Response by anonymous
over 13 years ago
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Discounted prices? How is it that in 1998 a 800sf 1br pre war went for 225k and today the same apartment goes for 600k. Lets get back to reality folks. Salary increases have gone up like 4% a year and housing 15%. The math just doesn't add up. Nobody wants to be on the losing end of the stick, but look at the internet bubble - people said that would never pop too. Unless Manhattan is going to be an all banker zone something has got to give.

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Response by anonymous
over 13 years ago
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It doesn't make sense - in the next few years you're going to see interest rates go up, baby boomers retire and want to sell their places (80% of boomers are counting on equity in their homes to retire and don't kid yourself that NY is different)...plus no new buyers can afford to enter the market - makes no sense and therefore, must come back down to reality (or panic sets in and it goes way below then you buy).

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

"plus no new buyers can afford to enter the market" translated means that based upon your income you can not see how people can afford to buy apartments. Well, maybe you have to confront the fact that the income level for Manhattan home buyers is higher than your earning level. Dem da breaks dude.

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Response by spunky
over 13 years ago
Posts: 1627
Member since: Jan 2007

Baby Boomer children are what is going to drive the next upturn. As far as a drop in prices it really depend on what you are looking for. A few weeks ago I put an offer in for a studio in the village and was outbid by three others who were above the asking price. Now that was only a few weeks ago so it really depends on the unit and location and of course the price.

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Response by anonymous
over 13 years ago
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You're in a dream state...prices have already dropped on studios and one bedrooms and they are continuing the free fall.

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Response by anonymous
over 13 years ago
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Yes, better to not buy and continue to pay rent to me..!!

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Response by bpjacob
over 13 years ago
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Member since: Oct 2006

don't underestimat the deep pockets of some of these new condos. they will hold their prices for at least another year.

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Response by Anon101
over 13 years ago
Posts: 28
Member since: Jan 2007

The other factor no ones seems to be mentioning here is that one of the reasons that prices are holding is that rents are increasing significantly. With the average 1 BR rent at or around $3,300 (and rising) for a doorman building buying a 55OK 600SF 1 BR makes financial sense (taking risk and forgone DP interest aside)
Until rents take a dive owners will rent and renters will want to own.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

renting out your condo/coop is too risky. Prices may continue to fall and then what.

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Response by anonymous
over 13 years ago
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how can you say it makes sense to buy and then say "taking risk and foregone DP interest aside" - um that is a HUGE part of the investment - THINK PEOPLE THINK.

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Response by anonymous
over 13 years ago
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Response by anonymous
over 13 years ago
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"renting out your condo/coop is too risky. Prices may continue to fall and then what."

I would continue to rent my unit (paying a significant amount of my mortgage) and find another place to invest in. I don't think we're going to see prices drop far enough that the rental market will collapse. High rents are a fixture in Manhattan so I would feel comfortable sitting on a place for a while. When will the first-time or financially-challenged (meaning you didn't work at Goldman in '06) buyer see comfortable pricing in New York? Probably never - it's just not that kind of island.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

You are dreaming....prices will never come down to pre-2002 but they are coming down. I've been looking and realtors keep saying "make an offer"

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Response by anonymous
over 13 years ago
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The average one bedroom rent..$3,300...where are you living..I just rented a one bedroom (approx. 600sf) in a doorman bldg. upper east side and I'm paying $2,200. I saw at least 20 apartments in the price range from 1900 to 2500 for one bedroom with doormen upper east side, midtown and midtown west.

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Response by anonymous
over 13 years ago
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By renting your coop/condo you're sitting on your money rather than investing it and making money. The rent would cover your monthly costs and that's it. Makes no sense to me...But then again if I were so smart i'd be rich.

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Response by spunky
over 13 years ago
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Member since: Jan 2007

600 sf one bedroom sounds to me your renting a large studio that was converted to a small one bedroom

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Response by spunky
over 13 years ago
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BTW I like the poster who keeps saying your dreaming. Imagine hanging out with a guy who starts off every sentence when he disagrees with you by say "your dreaming"

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

I am looking for a place to buy and think the prices are too high. I hope the Investment Banking crowd does not go nuts with their bonuses. Also, when I hear the "special deal" ... 'will not last speech" .. "way below market" speech from brokers I offer to pay the price if they take a 20% equity stake in the purchase to show that their money is where their mouth is. I have tried this with over 40 brokers (from some very large firms) - I have been shocked to find that not a single one was ready to put money in. Uh oh ...

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Response by anonymous
over 13 years ago
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to the above poster...

what?? you want a broker to invest in your living space, "so they will put their money where there mouth is?"

maybe you need a roommate or a something.
i never read such a retarded post...

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Response by anonymous
over 13 years ago
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yup, it was pretty retarded. It's not it's stock that is liquid enough for him to sell the next day or a bond with steady interest.

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Response by anonymous
over 13 years ago
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Member since: Feb 2006

There are 28,000 units, condos/coops, currently in development or about to come to the market. You can buy if you want, it's nobody's right to say buy or sell. But, now it's not about the amount of stuff out there, it's about how crappy they are throwing it together....

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Response by anonymous
over 13 years ago
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i wonder if the new crappy/cheap constructions will outlive those 30 year mortgages.
i trust my pre-war will outlast my lifetime

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Response by anonymous
over 13 years ago
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I agree the new construction looks pretty crappy. Windows instead of walls?

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Response by anonymous
over 13 years ago
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depends which developer are building. some are crappy, but some are very good quality such as those built by extel.
prewars have their own issues as the buildings are so old, and they're also taking the bigger price drops in this market.

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Response by anonymous
over 13 years ago
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Everyone keeps talking about wall street bonus. They are not buying studios, one bedrooms so they don't have any effect on that end of the market. Hopefully prices will become somewhat reasonable.

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Response by anonymous
over 13 years ago
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Wall Street has all levels of staff FYI and bonuses are impacting the market
at every level.

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Response by anonymous
over 13 years ago
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I agree that good stuff is hard to find and will weather the ups and downs of the price cycle better than most. I wish developers would stop insulting our intelligence by asking outrageous prices for low-celinged, internal couryard view, thin-walled, drek. Apart from the wealthy few (and admittedly NYC has more than its fair share) what I don't understand is how ordinary folks are supposed to get a home in a decent part of town - a lot of friends I know are either leveraged to the hilt (and therefore one serious illness / accident / family emergency away from disaster), or it takes parental and granparental help to get a decent place. I am afraid that Manhattan will become home to the super wealthy, or down and outs, with everyone else commuting in from affordable parts of the suburbs.

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Response by anonymous
over 13 years ago
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I was so afraid of never getting a foothold in NYC that we nearly bought a 2 bedroom condo in Washington Heights - but like other properties we saw in Manhattan we realised we were trying to be brave and convince ourselves that it was a good place to live, that it was value for money. Now we have found a place in Inwood that is truly nice, that I don't have to be brave about, that I can have my parents visit without shame, and that won't overextend us like the other place would, and that we can pay for without help. Don't make the mistake I nearly made!

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Response by anonymous
over 13 years ago
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Are you claiming that Washington Heights is not a good place to live ...?

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Response by anonymous
over 13 years ago
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yes washington heights is a great place to live and hangout at 12 am on a friday night......you retard

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Response by anonymous
over 13 years ago
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I don’t have to be brave about, that I can have my parents visit without shame~~~

OMG!
why dosn't someone do some real research on the racial aspect of real estate in NYC?
yeah there are still some sketchy corners, but mostly what do find?
Hard working Dominicans and others working for their American Dream..

The Horror of your parents finding out their offspring has abdandoned the self assured, self entitled enclaves of white majority?

60 years ago, people like you said the same about down-town when it was Italian and Jewish..

move back to Idaho

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Response by anonymous
over 13 years ago
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I cannot agree more with the poster above.
Unfortunately segregation still exists in New York City.

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Response by anonymous
over 13 years ago
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yes washington heights is great....by the way i know people that live up there...and the ice cream truck is where you buy the drugs from and they are woken up at night by gun shots.....so let's all get off our soap box and face the the facts.....go ahead and hang out up there on fri night and check out all the kids in white t-shirts...don't worry their not in a gang it's ok

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Response by anonymous
over 13 years ago
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i have friends living up there and it's not all drugs and gun shots as you claim.
brownstones are also pricing in $1mil. so not sure which part of washington hghts you're talking about. people started moving into the area because upw got so expensive, and properties are not cheap anymore. don't think you need to be ' as brave' now as you needed to be 10 - 15 yrs ago.
move with times.

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Response by anonymous
over 13 years ago
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So you are saying that there is no drug dealing or gangs in lower Manhattan?

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Response by anonymous
over 13 years ago
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p.s not all kids up there where white t-shirts.
you obviously had a very isolated upbringing.

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Response by anonymous
over 13 years ago
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it's amazing...there is no need to be PC...the facts are that Washington Heights is still a scary area...do you think the problems that caused all the crime there has gone away...NOOO

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Response by anonymous
over 13 years ago
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For the one who thinks I'm being racist - what makes you think I am not Dominican, Italian or Jewish? It's you that's jumping to conclusions - Oh she's ashamed to have her parents visit - she must be white, from Idaho.

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Response by anonymous
over 13 years ago
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I agree...it's stupid to think because you want to live in a "safe" neighborhood that you're racist...

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Response by anonymous
over 13 years ago
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thank you! :) and now I'm going to have dinner....

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Response by anonymous
over 13 years ago
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Just so you know, you don't need to be white Caucasian to be racist. You can be Asian and be racist. And segregation can be based on race, religion, ethnic group, sex, or social class.

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Response by anonymous
over 13 years ago
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LOL, WTF, for all you nervous ninnies, you can go up to the Heights and find all types of
caucasians working and living~but you what? don't go up there, you're not needed and would just drive the price up anyway

may i suggest New Jersey?
rememebr the old Jersey pitch? "New Jersey and You, Perfect together!"

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Response by anonymous
over 13 years ago
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When prices start dropping they drop in areas outside of Manhattan first...The prices in these"outside" neighborhoods are too high.

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Response by anonymous
over 13 years ago
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'Just so you know, you don’t need to be white Caucasian to be racist. You can be Asian and be racist. And segregation can be based on race, religion, ethnic group, sex, or social class.'

Exactly!
And to the poster who keeps harping on how dangerous Washington Heights is, you can't assume all working class people regardless of race are all thugs, on dope and do nothing but kill each other, and wear white T-shirts.

Washington Heights became the ' the second Manhatten' same way Brooklyn did, because Manhatten became so expensive. Perhaps, there are pockets of areas with safety issues - same as Brooklyn, but not to the degree you portray. There's a separate discussion on this area if you wish to take a look with people who have invested and are actually living there.

But I agree with the above poster, because they are outside neighborhoods they will also deal with the bigger price drops in slow markets from an investment standpoint.

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Response by anonymous
over 13 years ago
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Its Manhattan, not Manhatten

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Response by anonymous
over 13 years ago
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enough talk go hangout up there on fri...sat night....that's it until you have (which i have by the way) you have nothing to say except what you think is going on in your perfect world where everyone holds hands and smiles at each other.....until you actually go up there at night you have nothing to say.

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Response by anonymous
over 13 years ago
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you must look like Napolean Dynomite then or Pee Wee,
get beat up in jr. high much??

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Response by anonymous
over 13 years ago
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who cares about nc we are talking about nyc here tool time

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Response by StreetEasySupport
over 13 years ago
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Carolinas coast discussion moved "here":http://www.streeteasy.com/nyc/talk/comments/647

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Response by anonymous
over 13 years ago
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Thanks. I was already starting to miss NY

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Response by anonymous
over 13 years ago
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prices are continuing to fall and will do so for the next 8-10 years. Don't worry, you will be able to buy when this is all over. prices will probably drop at least 50-70% in real terms over the next 10 years (no it will not all happen in one year duh).

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Response by anonymous
over 13 years ago
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Nobody posting here is over 35 yrs old, thus they have never seen a different kind of market

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Response by exit2
over 11 years ago
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Member since: Dec 2008

yes prices are falling. but they werent two years ago.

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Response by Iwouldhitit
over 11 years ago
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Member since: Dec 2008

FTFA:

"ECONOMISTS and real estate analysts have attributed the drop to the rapid price escalation that occurred in the early and mid-80's as well as to the slack demand created by the loss of hundreds of thousands of jobs in the city, particularly in the financial-services industry, since the stock market crash in October 1987."

Can't you see the difference? Things are different this time!

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