NYC Real Estate Bubble Bursts As Apartment Sales Crash 20%

Posted today on Zero Hedge. NYC Real Estate Bubble Bursts As Apartment Sales Crash 20% Apartment sales in NYC have dropped 19% year-over-year. Looks like the real estate bubble has started to burst.

It's going to be bursting again all over the country.

Thank the bailouts and bad policy.

Thank rising rental and housing cost putting pressure on owners and renters.

Blame jobs cutting wages or keeping wages the same.

a reply to: AndyFromMichigan

I knew I wanted to sell my house last spring.... but it's just not ready. Here's hoping I can get it listed soon enough to surf the shockwave.

Chelsea Clinton's New York apartment has an on the premises Medical Center. It is retaining its value nicely.

a reply to: AndyFromMichigan

What about home pricing out west? Lots of for sale signs round here. And they're selling too.

a reply to: AndyFromMichigan

ah #. I hope it remains isolated to NYC but I bet this will cause a scare and affect much more than the city

It's all Trump's fault for wanting to be president. Now the New Yoikers are fleeing to the countryside.

Prices are outrageously high in my area, higher than they were before the last crash. If I had to buy my house today I could not afford it. I could sell it and become an overnight millionaire, but where would I live? The thing is, they're selling quickly at sometimes more than they listed for due to bidding wars. Even with the low interest rates the monthly payments have to be sky high. I just don't understand how normal people can afford them.

The bottom line as a practical matter is that my property taxes go up.

originally posted by: schuyler
Prices are outrageously high in my area, higher than they were before the last crash. If I had to buy my house today I could not afford it. I could sell it and become an overnight millionaire, but where would I live? The thing is, they're selling quickly at sometimes more than they listed for due to bidding wars. Even with the low interest rates the monthly payments have to be sky high. I just don't understand how normal people can afford them.

The bottom line as a practical matter is that my property taxes go up.

Normal people can't. It's people leveraging in order to purchase for resale or renting. Likewise it is foreign investors with more money than they know what to do with.

Not regular people.

a reply to: sputniksteve

Around here its the new Apple building going up. Bidding wars go over a million for townhouses.

cha ching...

1) Mortgage money is cheap if you qualify.

2) Foreign buyers are using real estate, particularly luxury properties, as a way to get their money out of their home countries. This is very common in NYC - russians, chinese, arabs, etc. Real estate is tangible.

3) In many areas of the country, you have a lot of highly paid skilled workers converging driving up prices.

originally posted by: sputniksteve

originally posted by: schuyler
Prices are outrageously high in my area, higher than they were before the last crash. If I had to buy my house today I could not afford it. I could sell it and become an overnight millionaire, but where would I live? The thing is, they're selling quickly at sometimes more than they listed for due to bidding wars. Even with the low interest rates the monthly payments have to be sky high. I just don't understand how normal people can afford them.

The bottom line as a practical matter is that my property taxes go up.

Normal people can't. It's people leveraging in order to purchase for resale or renting. Likewise it is foreign investors with more money than they know what to do with.

Not regular people.

I don't think so. I don't see ANY foreign investment in the real estate market here and no one is buying only to rent it out. Ironically, the rents are too high, but they won't cover the payments. There may be previous equity being used, a common way to trade up, however. In my own cul de sac: 8 houses total. Four on the market for $825K+, 3 sold, one under construction. It's wild. All but one under 3000 ft sq. These are not McMansions.

There are a few articles talking about housing prices in San Francisco dropping as well.

a reply to: AndyFromMichigan

Good, come to Canada now so I can finally buy a house. Been waiting out for years now.

originally posted by: schuyler

originally posted by: sputniksteve

originally posted by: schuyler
Prices are outrageously high in my area, higher than they were before the last crash. If I had to buy my house today I could not afford it. I could sell it and become an overnight millionaire, but where would I live? The thing is, they're selling quickly at sometimes more than they listed for due to bidding wars. Even with the low interest rates the monthly payments have to be sky high. I just don't understand how normal people can afford them.

The bottom line as a practical matter is that my property taxes go up.

Normal people can't. It's people leveraging in order to purchase for resale or renting. Likewise it is foreign investors with more money than they know what to do with.

Not regular people.

I don't think so. I don't see ANY foreign investment in the real estate market here and no one is buying only to rent it out. Ironically, the rents are too high, but they won't cover the payments. There may be previous equity being used, a common way to trade up, however. In my own cul de sac: 8 houses total. Four on the market for $825K+, 3 sold, one under construction. It's wild. All but one under 3000 ft sq. These are not McMansions.

Well I don't know how you would know who the actual investors are. Sometimes these aren't open purchases for reasons that you and I just aren't privy to. An investment company could be purchasing properties, then reselling or renting in such a way that you don't know they are involved, you think Jack and Cindy are the only ones involved. Even if the specific houses in your neighborhood aren't being purchases for the reasons I mentioned or the people I mentioned it IS happening and that DOES have a market effect.

You asked, I answered. If you were only asking about the specific houses in your culdesac, I don't know how we would be able to answer that. Our housing market isn't isolated, what happens through out the country effects the rest of it as far as lending rates, loan availability, and prices.

Edit* Schyler this wasn't supposed to have a "stick it to you" tone. I am sorry, I really shouldn't be replying today. I think it actually is indicative of a very big issue we are going to face next time we have a 2008 type recession. It will be a different situation when people are losing means to pay for housing and all the houses are owned outright by outside money so they market isn't resetting like it used to. I apologize for being a chithead though.

It's kinda weird that home prices in my area have gone up. I could sell my house for 3 times what I bought it for. I guess people are tired of being crammed together in cities, along with the high crime rates and are moving to the country. Of course, the way I got my house is a luck/timing story that I just couldn't pass up.

Capitalism is on the go, according Indian yogi and his predictive social cycle, ______beforeitsnews/economics-and-politics/2016/10/how-do-we-know-for-sure-capitalism-will-be-finished-2488493.html

Its good to hear such a boost up in this market. My friend has also recently purchased an apartment in NY. Real estate market needs investment, commitment and a good marketing strategy. Prices of a land or home may go high or low anytime. It's not easy to become a real estate agent in NJ. If you are a self-motivated, hard-working, honest person who enjoys negotiating and networking, then a real estate can be very rewarding.