August 17, 2007
Wall St. Woes Create NYC Real Estate Market Worries
With the economy acting as though it's on a roller coaster given concerns about credit and mortgage markets, NYC real estate brokers are feeling the pains. Some potential buyers who would have qualified before issues with the mortgage markets now find themselves struggling to get the loans they need and being asked to put more of their money down. However, we will say it's hard to be sympathetic to someone looking for a $3.3 million mortgage or someone who makes $500,000/year failing to get an $850,000 mortgage, which were two examples in the NY Times.
The Post spoke to a number of real estate brokerages. Prudential Douglas Elliman's vice chairwoman Dolly Lenz says that apartments over $5 million would probably be hurt by the stock market's tumult, but activity is still healthy for apartments under $5 million. Appraiser Jonathan MIller suggests that "Bonus income" - often what fuels many new home purchases - "may be impacted as profits in the financial-services market begin to recede." Verdict on potential NYC residential real estate market slump: Mixed (perhaps there will be some bargains at the top of the market - like get that $8 million apartment for $7 million). But some think that the market turbulence is good for commercial real estate.
And many traders all over the world are probably thinking, "Thank God It's Federal Reserve Discount Rate Cut Friday!" The Fed decided, in a surprise move, to cut the discount rate, which is the rate that the Fed loans to banks, and the Dow Jones Industrial Average increased almost 300 points this morning. You can read the full text from the Federal Reserve here - the Fed said, "Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth." One Lehman Brothers economist tells Bloomberg, "I think it was exactly the right thing to do" because it will "basically do more to unclog the credit channels."
More fun: Subprime mortgage graphic from The Onion, via Curbed.
Photograph of new construction by Goggla on Flickr
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GOOD! It's about time!
so, it's not a surprise fed rate cut for the money exchangers? stop bamboozling the public.
here's my currency,
guns and bullets, what's the exchange rate on that?
molon labe.
The New York Times recent series of articles on the woes of the affluent has really rubbed me the wrong way. They're as in touch with reality as John "Don't Ask Me Which Half Of America I Live In" Edwards.
Don't be shocked when the banks start laying off staff in September/October. Fewer employees to spread the bonus pool over.
thanks for the curbed link,
guess I'm a bitter renter with iron, steel and lead currency.
the sign in that picture makes me want to throw up
where is that construction location?
NYC doesn't even look like NYC anymore. Look at the three buildings behind it, that could be downtown Atlanta or Richmond VA. or, a dentist's office which was in one of those TLC home makeover shows.
The poor dears, having a harder time getting mortgages for their cute little $5 million lofts. My heart bleeds for them.
jealous much?
jealous much?
The idiot's retort.
No, actually I am not jealous. I have plenty of money but don't like to over spend and/or leverage myself to the point of where I am living paycheck to paycheck on a six figure paycheck. I wasn't raised that way. It the same reason I had a hard time being too sympathetic to the 9/11 widows of bankers and lawyers. If you have that kind of income and lifestyle you should have your own life insurance anyway.
The greed of the hedge funds and banks packing these CDOs are what got us into this mess. In this case, greed wasn't good.
Tastless much?
Schmuck.
Quick, bring back the Moondance!!
the po' stay po'. & the rich stay rich. & i'm stuck here in the middle. ain't that a bitch..
/albert collins
Things to not care about:
1. People who make $500k+ / yr
2. The asshat builders who are filling every square inch of the city with "luxury" condos that cost millions of dollars.
That's the construction site of the Zinc Building in North Tribeca... the over-traffic'd corner of Greenwich and Canal... $$$ lofts and you can't open your windows for all the exhaust from the 3 hours worth of rush hour Holland Tunnel traffic jam.
(Important to note that's an old picture... the building is now framed.)
Is that Ann Coulter @ #11? Otherwise, good point.
Spanking condos? I thought that The Village Voice already covered that club's demise.
That's why it's a good idea to have multiple sources to invest in ! Most investors have no clue that the current market was influenced by Credit ! A very bad sign for stable investments I've come to learn . Posted by; "Still Not Amused"
"The greed of the hedge funds and banks packing these CDOs are what got us into this mess. In this case, greed wasn't good."
Hey wall street doesn't have a monopoly on greed. The reason why subprime mortgages were so popular is because people with shitty credit and insufficient income wanted to buy homes they thought they deserved but couldn't really afford.
These crazy ass greedy consumers have been keeping the economy afloat for the last few years. This country thrives on greed.
"That's why it's a good idea to have multiple sources to invest in ! Most investors have no clue that the current market was influenced by Credit ! A very bad sign for stable investments I've come to learn . Posted by; "Still Not Amused""
Well, technically, credit is still pretty good, we're currently suffering from a liquidity issue.
It all falls on the Swathe of folks using credit to purchase shit they know they can't afford ! The negatives far outweigh the positives when talking about credit/lending . The two go hand and hand # [21], Just look at it this way "What happens to Ice when exposed to a heat source ? It melts , Creating a body of water, which creates an excess . Resulting in an overflow " Posted by; "Still Not Amused"
that photo is overphotoshopped.