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NYC real estate hit it peak cycle in 2015. Sale volume is significantly down while prices have remain flat. The global economic forecast is a near recession due to global stagnation. It will take a more significant shock than UK leaving the European union for people to start selling real estate at significant discount. The fundamentals of NYC region are too strong to support a decrease in price given unemployment is low, increasing population, restriction in creating new supply. The rental market is strong and many investors treat NYC real estate like the bond market due to the low interest rate and high rental yield. The consequences for today real estate market will be felt in the coming decades when people rent all their life have no assets to retire on and social security doesn't cover everyone. Today actions by the UK is a symptom of the issue in inequality.
As some of you have heard, the Brits voted to leave the EU and because of it their currency is crashing. It wasn't long ago that it was at $2 to 1 Pound now it is closer to $1.37 to 1 Pound.
As my British friend is paid in Pounds, this is a big drop in spending power and he is having trouble paying his NYC mortgage, taxes, condo fees, etc. So, he is most likely going to sell.
We all know that Euro Trash loves to buy up NYC property, especially on the high end. Will the drop in the Pound and the Euro lead to less demand for housing in NYC and/or the selling of property?
It will probably have the opposite effect. The world just lost the only real estate investment deemed safer ( and more expensive) than NYC. Now they will all be buying here.
The general public are not economists who can forecast crashes and booms. Even professional economists cant predict crashes and booms precisely. Most are sheep....look at the stock market and gold prices the past 2 days....market panic.
there are no safe havens . once things level out you will see sell off's in gold and treasury's .
I don't know about the US treasuries part though. I haven't looked at it myself, but one economist was stating he feels it may be a bubble there as well. The US economy has been fiscally unsound since the dot com era. It has been one bubble after another to try and avoid what should have happened since Clinton left office (a economic reboot of magnificent proportions)
Amen to that. You nailed it: one long recession since 2000 with a crash averted (except for the mini crash of 2008) by endless government borrowing on a colossal scale. Like an unemployed dude maxing out one credit card after another in the hopes there is never a reckoning.
Amen to that. You nailed it: one long recession since 2000 with a crash averted (except for the mini crash of 2008) by endless government borrowing on a colossal scale. Like an unemployed dude maxing out one credit card after another in the hopes there is never a reckoning.
That is how capitalism works. Through debt. Money always has to be kept flowing or it does not do anyone any good.
there are no safe havens . once things level out you will see sell off's in gold and treasury's .
Literally speaking, of course not...there is no perfect safe haven. But relative to the british pound, of course its a safe heaven. Its like choosing to invest in stocks or bonds....bonds are the safe haven relative to stocks.
That $90 million condo on the 75th floor is gonna drop to $70 mill.......!
Wow maybe I can buy now.
Lmao some of ya really expect a NYC housing market crash overnight. Most of the time is doesn't work like that unless something globally extreme happens.
Lmao some of ya really expect a NYC housing market crash overnight. Most of the time is doesn't work like that unless something globally extreme happens.
The only way is if there is extreme flooding since we are on an island or extreme crime (1970s).
I think the very temporary currency dislocations caused by Brexit will be short lived and a balance will return, probably not that different from valuations last week.
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