Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"The value of apartments in Manhattan is plummeting, even as the price of apartments in dollar terms has, according to several reports by real estate firms, soared to record highs.
The average value of a Manhattan apartment over the past six years has plunged nearly 39%, to 1,727 ounces of gold, even as the average dollar price of an apartment in Manhattan over the same six-year period has nearly doubled to $1.4 million, according to figures in several real estate reports published today for the fourth quarter of 2007."
I thought this article was interesting, but I'm pretty sure most New Yorkers are already aware of this...
If you actually read this article you would understand that it is nonsense..and more hype by those looking to scare sellers so that THEY can get in on the Manhattan market. The article also said they see the apartments losing 90% of their value relative to gold....just dumb.
Well, given that we haven't been on the gold standard in decades, who the h3ll cares?
Gold is basically the most stable form of currency. Hence the term "Gold Standard". I'm skipping the article, but Gold has increased in value vs. the dollar and the American dollar has plummeted vs the Euro.
90% sounds very extreme, but the weakness of the dollar vs major foreign currencies has been making high end NY real estate very attractive to foreign buyers.
Yes weakness of the dollar vs the Euro (for ex) has been making high end NY real estate very attrative to foreign buyers/investors, which has FURTHER supported increasing prices in NYC, and has had a trickly down effect in the less desireable areas in Manhattan as well as the outerboroughs as those prices out from the ever growing Manhattan GLOBAL real estate market must now choose outlying areas.
Of course that point is not addressed in the article..the article simply says the dollar has decreased in value versus gold..therefore the Manhattan market is severely overvalued and will see a 90% decline. Hogwash!
Yes weakness of the dollar vs the Euro (for ex) has been making high end NY real estate very attrative to foreign buyers/investors, which has FURTHER supported increasing prices in NYC, and has had a trickly down effect in the less desireable areas in Manhattan as well as the outerboroughs as those prices out from the ever growing Manhattan GLOBAL real estate market must now choose outlying areas.
Of course that point is not addressed in the article..the article simply says the dollar has decreased in value versus gold..therefore the Manhattan market is severely overvalued and will see a 90% decline. Hogwash!
prices have increased for the high end and decreased for the mid and low end. The average price of a Manhattan apartment has increased because the apartments being sold are in the 10 million range, which skews the numbers toward the high end.
Prices have not decreased in the mid and low end.....because the mid and low end are where the high end (not the extreme high end) used to be just 7 years ago. The prices continue to rise, just not as greatly as 2002-2006..but nonetheless prices are moderating, not declining.
I understand the concept of the astronomical high end properties skewing the avg...but regardless of this skewed few..the fact remains that PRICING continues to escalate....so who the heck cares about an arbitrary assessment like value to gold? When has that EVER come into play when purchasing property in NYC in the past 40 years?
Prices have not decreased in the mid and low end.....because the mid and low end are where the high end (not the extreme high end) used to be just 7 years ago. The prices continue to rise, just not as greatly as 2002-2006..but nonetheless prices are moderating, not declining.
I understand the concept of the astronomical high end properties skewing the avg...but regardless of this skewed few..the fact remains that PRICING continues to escalate....so who the heck cares about an arbitrary assessment like value to gold? When has that EVER come into play when purchasing property in NYC in the past 40 years?
According to many news sources, places are seeing a 4 to 5 percent decrease in prices. If anyone wants they can google that info, or not.
Prices have not decreased in the mid and low end.....because the mid and low end are where the high end (not the extreme high end) used to be just 7 years ago. The prices continue to rise, just not as greatly as 2002-2006..but nonetheless prices are moderating, not declining.
I understand the concept of the astronomical high end properties skewing the avg...but regardless of this skewed few..the fact remains that PRICING continues to escalate....so who the heck cares about an arbitrary assessment like value to gold? When has that EVER come into play when purchasing property in NYC in the past 40 years?
What are you talking about? Basically the luxury market is humming along fine. The article I read in the Post or Daily News today said that all of manhattan went up, except Inwood which is starting to go down. Most of the real estate deals i read about outside fo Manhattan have selling prices about 5% less than asking.
The US economy is quite shaky at the moment, high oil and prices and consumer debt are putting the Service Economy in a shaky position. The dollar buys far less of the basics than it dead five years ago (look at the price of wheat and corn). Bloomberg has been positioning the city to be prepared for the possibility of a serious economic slowdown. The city is very fortunate to have him as a mayor, but things are still gonna get worse before they get better.
Manhattan (minus some areas of harlem and inwood) will always be a safe investment as far as real estate, as are established neighborhoods such as park slope, riverdale, forest hills, astoria and such. Its the up and coming neighborhoods where an investor or new homeowner will feel the pinch of and economic slump. When money is tight these areas are the first to feel the cutback in services and whose population is the first to feel economic pinch.
I'm going to go out on a limb here, but I think we're experiencing the beginning of a real economic slow down in the US. It wouldn't suprise me to see a rise in unemployment and crime. If this happens alot of those bargain hunting gentrifying types in areas like Bushwick and Bed-Stuy are going to be in for a real bumpy ride.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
