Jon, Home Buyer in Fairfield County, CT

Thoughts on prices in New York City and surrounding suburbs?

Asked by Jon, Fairfield County, CT Fri Feb 20, 2009

despite low mortgage rates I’m hearing stories about 2500 sqft apartments that were listed at 1.8mil last summer are now being marked down to the 1.2 range and could easily be bought for 1. I’m also hearing that rents have dropped 20-30% recently. Prices should fall by at least that much because it’s still cheaper to rent than buy. My question is why shouldn’t the suburbs follow a similar path to NYC? I’m also concerned that despite falling around 20% since 07, prices in NYC suburbs (Fairfield Ct in particular) are still overvalued on a price/income basis. The median Darien, CT family income is 218k and the median home price is 1.22mil. The median New Canaan income is 231k and median price is 1.47mil. Westport is 193k and 1.20mil price. Paying 6x your annual income for a house is too high. The 50 year average in the U.S. is 3-4x which means prices would have to drop 35-50% to reach the long term equilibrium. I was wondering what other views are out there on prices?

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Why are prices falling 50% in some cases in NYC and Hamptons but not in suburbs? see above articles.
1 vote Thank Flag Link Fri Feb 27, 2009
I'm in Suffolk County and it depends on the type of house that is being sold. The first time home buyer house has gone down somewhat but not to the extend the buy-ups have gone down. Anyone wanting to buy up, now's a great time. We have a lot of activity out by us and I have a listing in Floral Park that is being shown 4-5 per day. Good luck guys! Listings, Listings, Listings!
0 votes Thank Flag Link Sun Feb 22, 2009
Despite the slowdown in the market, well priced apartments in NYC are selling and there has been an increase of activity over the last month. However, according the the NYT article from yesterday, the suburbs in the area are seeing little or no activity...
0 votes Thank Flag Link Fri Feb 20, 2009
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