Posted on 11/01/2011 8:52:02 AM PDT by SeekAndFind
New York is the largest city and the most misunderstood housing market in the nation.
Sellers think that the market in New York has held up rather well and ask a lot for their property.
Most buyers look at the listing price, laugh and just walk away.
The result has been very low sales volume at prices that cause many analysts to shake their head in bewilderment.
This report is written to help both buyers and sellers. If you are a potential buyer, you will learn why you need to be extremely careful to avoid overpaying on a property.
If you are an active or potential seller, you will learn why asking prices throughout NYC are too high and why you must carefully determine a listing price that will actually entice buyers.
How the New York City Bubble Developed
The housing bubble that formed in NYC was 10 years in the making. From 1996 through 2006, the number of annual mortgage purchase loans originated for those claiming to be owner-occupants doubled. This terrific chart from a 2007 report put out by the Furman Center for Real Estate & Urban Policy shows what occurred.
It is important to note that this does not include mortgages originated for the purchase of investment properties. Speculation during the key years of 2004-2006 was rampant throughout the Big Apple.
In 2005, the National Association of Realtors released the results of its annual home buyer survey which found that in 2004, 23% of all purchases were for investment and another 13% were “vacation homes.” Clearly, the total number of purchase mortgages originated during these three bubble years in NYC was much higher than the Furman Center’s figures.
Fraudulent mortgage applications were also widespread in the midst of the bubble.
(Excerpt) Read more at businessinsider.com ...
most people might laugh and walk away. but the euro money apparently doesn’t. New Yorker’s aren’t stupid.
I don’t know about “crushed,” but I wouldn’t pay a dollar for a house in NYC. I guess you can start the bidding there.
I can’t begin to understand the “values” in Chicago, let alone NYC.
We really do have “two Americas” , but not in the way loverboy Edwards meant.
I bid 99cents
For the complete, in-depth analysis and report, download it here."
I think they should disclose that you can BUY the report and download it! It's not free!
We are looking to buy a new house and have been since 2006 but they just keep getting cheaper. This could be useful information but I'm certainly not willing to pay for it!
Does not help when the Governor and Mayor invite the sort of people who actually have the cash to make these purchases (i.e. Rush Limbaugh) to catch the first Pullman car out of Dodge.
When it collapses, it will NOT be pretty..these people will lose EVERYTHING.
NYC doesn't really have a middle class anymore..people may be "middle class" byt heir income, but the incredibly high cost of everything in NYC leaves almost NO discretionary income after basic expenses. You have the very rich, the midle class poor, as I call them, and those way below the poverty line..
Do not understand why anyone would want to live, let alone buy, in New York.
NYC is exciting and I can see the draw, but I wouldn’t want to live there and I couldn’t afford to buy or rent!
Plus, I need warm weather and lots of sun!
The biggest single expense in New York is taxes. All other expenditures you can find deals.
Absolutely...FWH, SWH, CWH, FICA, FUTA, all the rest..easily a 50% haircut for almost everyone..
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