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Not in NYC. We bought a house in the peak of the recession. Houses were by no means cheap then. We were outbid on properties until we finally outbid someone by $5k. We sold 3 years later and made over $150k. Multiple offers, cash buyers within 2weeks. We had to go up $5k to outbid someone for our current house.
Houses sell within 3 months in our area. Everytime I think no way someone is buying that, curtains go up less than 2 months later.
If your house is well priced, in decent condition it sells immediately. If it has no offers in 6 months it is overpriced.
World class cities that are financial centers ( NYC, London, Paris etc) will not see a depression in prices the way middle America did. This is where uber wealthy park their money in real estate, they squeeze out the wealthy, who in turn squeeze out the rich, who squeeze out the upper class, who displaces the middle class etc.
TRUE, but trump is scaring away Chinese investors and the Russian ones are gone, Brazilians stopped buying when their economy tanked. no so much upward pressure in the luxury market.
Not in NYC. We bought a house in the peak of the recession. Houses were by no means cheap then. We were outbid on properties until we finally outbid someone by $5k. We sold 3 years later and made over $150k. Multiple offers, cash buyers within 2weeks. We had to go up $5k to outbid someone for our current house.
Houses sell within 3 months in our area. Everytime I think no way someone is buying that, curtains go up less than 2 months later.
If your house is well priced, in decent condition it sells immediately. If it has no offers in 6 months it is overpriced.
World class cities that are financial centers ( NYC, London, Paris etc) will not see a depression in prices the way middle America did. This is where uber wealthy park their money in real estate, they squeeze out the wealthy, who in turn squeeze out the rich, who squeeze out the upper class, who displaces the middle class etc.
I don't know about the market for free standing houses, but I'm a real estate research analyst, specifically focused on the New Development condo market, and yeah... we're definitely in a downturn.. and yes, it's absolutely affecting New York City.
You won the forum today! I have been saying this for ages. Everyone thinks that the are entitled to shiny, new, convenient, prime location real estate on a poor/middle income budget. They live through periods where properties in their neighborhood or other affordable neighborhoods could have been purchased for affordable prices. They didn't see the value. They refused to buy. Now they complain about being priced out when others come in and start improving the area.
I will always remember my coworker who told me that when she purchased in Chelsea it was her, the hookers, pimps and drug dealers. That is what she could afford. No one wanted to touch Chelsea then.
This has been going on for years in different neighborhoods. But people refuse to learn and get in where they can afford.
That's where you are wrong. Not everybody wants shiny and new. FH and I would gladly take something clean, modest, something we can slowly renovate as long as the neighborhood is worth it.
When I see shiny and new all I think are paper thin walls and windows that don't open.
I said to FH that if our building goes co-op while we are living there we should go for it. He doesn't want to. A) He doesn't think it will. B) He doesn't have faith in the area.
We are too close to several other co-ops to have that never be an option in the future, Executive Towers being a major one. Plus, I have faith in the area. Maybe I'm being naive and wishful thinking because I grew up there and love the apartment. But our current apartment would be good investment once the building/neighborhood cleaned up a bit.
Well, historically, redlining prevented people from buying in many of NYC's poor Black/Brown neighborhoods.. which went a long way towards denying people the largest piece of most people's puzzle when it comes to generation of wealth.. homeownership. This prevents people from generating generational wealth.. communities remain poor.. schools remain ****ty, since politicians don't have financial reasons to care about poor communities.. poorly educated people don't have the money/wherewithal to buy property in their own communities, and here we are with people being displaced.
Sure, some of this comes down to people's own choices, for sure... but a good portion of the equation has nothing at all to do with that.
Quote:
Originally Posted by upthere22
most of the buildings were converted to HDFC coops in the 80s, and most banks would not lend to HDFC coops. Now its different CITI, Chase, and B of A all lend to HDFCs coops. Back in the day if you wanted to buy, it was all cash.
you will be surprised how many people own their appts, There are more than 1,200 buildings with more than 30,000 HDFC units across the city, most of them in LES, Harlem, WH, South Bronx and williamsbourg.
I’m aware of redlining, but I’m referring to current (last 15-20 years) situations where one can get loans buy in these areas. I still understand one must be financially capable in the first place and there is a lot of baggage around being able to do that when you come from one of these areas. However, I know a number of people are in a position to buy but don’t. In those cases it comes down to their choices. You don’t need generational wealth to buy a coop in the Bronx. You need a steady job, good credit, and the ability to save money. Often saving money comes down to making wise chooses too.
Poor black and brown immigrants manage to become property owners in nyc so it’s not out of reach for everyone. Like I said before, I think a lot of it has to do with the mindset. For example I have a friend that is from one of the historically “rough” areas of BK. Lived there her whole life. She’s college educated and has a job in social services. I don’t know what her spending habits are like so she could very well have messed up credit and no savings - though she does have a CC and can afford to go on nice international vacations ...
Anyway, she was gentrified out of her apartment- the building was sold and turned into condos- and now at 40 something has to live back home. It was a long process for the new owner to evict her and during that time I suggested that she consider getting finances together to buy something. I pointed her to inexpensive and safe areas of the BX and the response was “I don’t like the Bronx”. Ok fine. I pointed her to inexpensive areas (safe and unsafe!) of BK but those were “too far” or “too dangerous”. Ok fine. Truth is she just didn’t have the motivation or mindset to be a property owner but I’d argue could have financially figured it out if she really wanted to do it.
Fast forward to 2018, and she’s a 40 something living at home with her mom. She’s employed, actually in a better paying job now too. I want to ask if she’s using this opportunity to save up for her own home but I suspect he answer is no. To be fair though, not everyone wants to be a home owner and have all of the responsibility that goes along with it.
That's where you are wrong. Not everybody wants shiny and new. FH and I would gladly take something clean, modest, something we can slowly renovate as long as the neighborhood is worth it.
When I see shiny and new all I think are paper thin walls and windows that don't open.
I said to FH that if our building goes co-op while we are living there we should go for it. He doesn't want to. A) He doesn't think it will. B) He doesn't have faith in the area.
We are too close to several other co-ops to have that never be an option in the future, Executive Towers being a major one. Plus, I have faith in the area. Maybe I'm being naive and wishful thinking because I grew up there and love the apartment. But our current apartment would be good investment once the building/neighborhood cleaned up a bit.
the cheapest appt in Mott Heaven being sold today is 489k for a one bed.
I recognize this, but again... it's generational. Not being able to buy in 1972, means that that generation had to rent (or leave NYC), so they weren't generating wealth. Their kids then grew up without that wealth.. and in a ****ty neighborhood with schools that were not preparing them to be competitive.
A decade's worth of opportunity is cool.. but when we look at who's being displaced by gentrification and why.. it's just not at all accurate to point the finger at people who were locked out of the opportunities, as if it's all their own fault.
I know enough successful people who went to school in the ENY, Bedstuy, Bushwicks, Jamaica in the 80s, 90s and early 2000s. They didn't let their school or surrounding stop them. I also know teachers who teach in these schools. The worse school in America has better facilities and resources than over 70% of schools in third world countries. Immigrants routinely move to the usa, into the underserved neighborhoods and somehow find a way to make the best of it. Most do so without access to any form of generational wealth, some having less than $100 in their pockets
Many move on to owning after arriving here without money or jobs lined up. Their kids avail themselves of the educational and job opportunities here and achieve even more. My parents' struggle was not a hinderance to me. It was in fact my motivation to achieve more and better myself.
We all agree that there are inequalities in opportunities. But, we have to stop with the woe is me. Look around, embrace what we have, find ways to make what we are given work for us. Trust me when I tell you that there is money here to be made, jobs and opportunities to be had. People move to NYC by the thousands or hundred thousands yearly. They are attracted to the opportunities available here.
Getting on the property ladder is not a Herculean effort. If you want something bad enough, or see value in obtaining something, you will make it happen.
I’m aware of redlining, but I’m referring to current (last 15-20 years) situations where one can get loans buy in these areas. I still understand one must be financially capable in the first place and there is a lot of baggage around being able to do that when you come from one of these areas. However, I know a number of people are in a position to buy but don’t. In those cases it comes down to their choices. You don’t need generational wealth to buy a coop in the Bronx. You need a steady job, good credit, and the ability to save money. Often saving money comes down to making wise chooses too.
Poor black and brown immigrants manage to become property owners in nyc so it’s not out of reach for everyone. Like I said before, I think a lot of it has to do with the mindset. For example I have a friend that is from one of the historically “rough” areas of BK. Lived there her whole life. She’s college educated and has a job in social services. I don’t know what her spending habits are like so she could very well have messed up credit and no savings - though she does have a CC and can afford to go on nice international vacations ...
Anyway, she was gentrified out of her apartment- the building was sold and turned into condos- and now at 40 something has to live back home. It was a long process for the new owner to evict her and during that time I suggested that she consider getting finances together to buy something. I pointed her to inexpensive and safe areas of the BX and the response was “I don’t like the Bronx”. Ok fine. I pointed her to inexpensive areas (safe and unsafe!) of BK but those were “too far” or “too dangerous”. Ok fine. Truth is she just didn’t have the motivation or mindset to be a property owner but I’d argue could have financially figured it out if she really wanted to do it.
Fast forward to 2018, and she’s a 40 something living at home with her mom. She’s employed, actually in a better paying job now too. I want to ask if she’s using this opportunity to save up for her own home but I suspect he answer is no. To be fair though, not everyone wants to be a home owner and have all of the responsibility that goes along with it.
i just checked street easy, there are 87 appts under 200k being sold int he Bronx today.
Anyway, she was gentrified out of her apartment- the building was sold and turned into condos- and now at 40 something has to live back home. It was a long process for the new owner to evict her and during that time I suggested that she consider getting finances together to buy something. I pointed her to inexpensive and safe areas of the BX and the response was “I don’t like the Bronx”. Ok fine. I pointed her to inexpensive areas (safe and unsafe!) of BK but those were “too far” or “too dangerous”. Ok fine. Truth is she just didn’t have the motivation or mindset to be a property owner but I’d argue could have financially figured it out if she really wanted to do it. .
agree 100%, i think that a lot of people do have a vacation mentality in life, they like to live in "cool hoods", pay lots of rent, like they are on a permanent air-bnb or something and not thinking about their long term financial well being. They pay to live where they want, at any cost. but then complain when they are price out by other people with more money.
I don't know about the market for free standing houses, but I'm a real estate research analyst, specifically focused on the New Development condo market, and yeah... we're definitely in a downturn.. and yes, it's absolutely affecting New York City.
I am not a research analyst. But perusing real estate is my hobby. I have noticed that new condos and high end ($1 million or more) houses languish longer on the market. There was also a glut of new condo construction building. For the most part, the average person would prefer to live in a house. This maybe the reason condo sales are lagging (I always viewed them as having poor resale value, I have said as such on this forum). The supply is much higher than the demand.
There is little reason to buy a $500 to $600k 2 bedroom condo when you can have a house for the same price rance.
When I look at the price history for houses over $1 million that are for sale, I notice that they have not appreciated much in 3, 5 or 10 year span. In fact, it seems the higher the price in the millions, the longer it sits on the market and more likely that the seller is to take less than asking price in order to sell.
Middle class neighborhoods and houses priced to attract middle class buyers are still going strong.
i just checked street easy, there are 87 appts under 200k being sold int he Bronx today.
Oh there are apartments. I tell FH you are spoiled with your commute now being so close to Manhattan. I've lived in Westchester, Queens, Brooklyn, NJ. I don't have a probably doing commutes. He said he won't mind commuting because he will be commuting to and from something he owns.
We shall see, lol
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