Licensed Real Estate Salesperson
Thats all I have to say regarding that.
Regarding job loses it is very unfortunate and I do feel extremely bad for anyone who lost a job, a friend of of my lost a job at J.P. Morgan and she held a senior position. Regarding Citigroup, they are the one's who are responsible for all that is happening right now.
Many of our brokers have worked in this industry for decades, and have seen our markets go up and down like a rollercoaster, people pull through and at the end if you buy smart and you can afford to buy it is a smart investment. People need to live somewhere, and not everyone wants to pay close to $5K for a 2 bedroom in an OK building as a rental.
Lets agree to disagree, you make some valid points, and I strongly believe that New York is unlike any other market that will hold its own in tough times.
Here is a paper by the Center for Economic Policy that they predict NY real estate prices will drop massively in the next few years:
Here are the futures data for the Case-Schiller index for the NY Metro area, the financial world is betting on a 20% decline in the NY metro area in the next 5 years:
And here is the case schiller index data which has shown that the NY metro area has fallen every month for the last 15 months:
I'm not negative because of the media, and blaming the media is just trying to cover up the problem. I'm negative because 2 weeks ago, Citigroup and Merrill Lynch said they were laying off 13,000 people, last month JP Morgan said ~10,000 jobs would be cut from Bear Stearns. The economy is in recession home prices are so unbelievably out of whack with incomes and rents that its completely unsustainable. Its odd you blame the media, the media is your friend actually. They're the ones clamouring for a gov't buyout that would let some of this disasterous bubble hold its value which just makes home ownership much more difficult for the average person.
This really isn't a Trulia type of a conversation, if you need more information shoot me an email at Alen.Moshkovich@elliman.com or call me 212-418-2066 so we can discuss this, and I can send you our 1st Quarter 2008 Manhattan Market Overview.