Replies

Why wont prices in NYC fall? Wall St. money I suppose. It is just bizarre.

Some argue New York City is bubble proof. I doubt it. But there certainly doesn't seem to be any sign of slowing so far!

NYC real estate has tracked the securities markets in the past. Wait for the next bear market in stocks and see what prices do there.

I just heard that this will be the 3rd best year ever for the M&A market. Wall Street is expecting a near record year for performance payout bonuses. That means another shot upward for real estate in the tony sections of the city for at least several more months from just internal demand.

Back on topic: The slowdown in condo sales in central Florida is the most amazing real estate event I've witnessed in my life. (I'm only in my late 20's). Developers who sold out entire multi phase condo complexes are now having to try to resell condos in the now built phase 1 area before even attempting to build phase 3, or 4 or whatever. The condos have just now last month fallen below the pre-construction builder's prices for existing units, AND the cost of building new phases has substantially increased post-Katrina. Which means the value of existing units should hold steady as new inventory won't be made available as fast.

The people who bought into later phases are in for more surprises, even after the surprise 3 to 6 month delays for some new condo complex completion dates. Phase 1 units are now selling for slightly less than unbuilt phase 3 units were sold for, phase 3 buyers locked in a contract that is an immediate loss for them, and no way to sell the condo without accepting a larger loss, because the average # of days a condo is on the market has increased drastically. Herd mentality got these people into this fine mess, and the herd running for the doors is going to exaggerate the downward pressure on the market there.

They have fallen. A two-bedroom apartment in a decent neighborhood is down to $3 million.