Posted on 08/10/2013 10:34:40 AM PDT by whitedog57
The Federal Reserves zero interest rate policy (ZIRP) and quantitative easing has clearly had an effect on the market. The stock market to be more specific.
spxfedfundstraget
Manhattan dwellers with budgets that would buy mansions in most of America are discovering it’s tough to find even a two-bedroom apartment in New York as the inventory of homes shrinks. The number of available units for less than $3 million — those generally considered nonluxury — has plunged by the most on record, creating a shortage that’s unlikely to be alleviated any time soon as developers focus on ultra high-end condos that have set price records by wealthy investors.
Even for cash buyers. # million dollar condos are not typically purchased by part-time workers that have dominated the employment scene since January 2009 (where 7 out of 10 jobs created have been part-time).
To be sure, condos in New York has skyrocketed past the national average (LPS’ home price index in white).
loanhpinycondo
nyhpcondo
If we compare Cleveland Ohio to New York condos, we can see that New York condo prices are skyrocketing past Cleveland house prices as well.
clevelandvsnycondos
Mortgage rates have been rising since May 1st, but falling slightly since their local peak on July 5th. Here is an Ichimoku representation of the trends in Bankrate’s 30 year fixed-rate average (solid white line).
brich
While Fed policies have clearly helped juice the stock market (which, in turn, helps stock market investors like those in New York City), it has been less helpful to middle class households who are not benefiting as much from lower mortgage rates as can be seen in flat mortgage purchase applications.
mbapurcch080713
Can’t wait to see HUD integrate Manhattan with more of Holder’s people. There are a number of Leftist enclaves which need to be given a good dose of diversity before the Obamacrats pick on Middle Class neighborhoods.
Also foreigners buying. A normal housing market is priced at 3X earnings. At the peak in California, it was 5X. In Beijing currently, it is 18X. Things look like bargains here. But this is ok, since there is all the Wall Mart money sloshing around, it might as well come back here. And after real estate crashes again, it will stay here. Kinda like Japan in the late 80s.
bump
“Even for cash buyers. # million dollar condos are not typically purchased by part-time workers that have dominated the employment scene since January 2009 (where 7 out of 10 jobs created have been part-time).”
If the minimum wage were raised these workers could buy condos too.
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