Bubble Wrap: December 2005
Entries
Local home RE brokers/agents not dropping
The Real Deal reports that in the midst of growing signs of a slowdown broker numbers stay strong, and that most don’t see that changing much in the short-term. Now you may think that “one agent for every 55 Manhattan residents” is a lot, but record price/ft continues to be a very positive motivator.
Think they worry about a softer RE market?
Apparently there is some disagreement as to who has the most expensive apartment. In The Battle of the Biggest the New York Times covers the squabble over whose cost more…the one who paid the most, or the one who paid the most at once. We suggest one of them pickup this one quick, and settle the score.
Population shifting away from NY
US Census population estimates reveal that high prices are causing people to look in the South and West rather than “pricey coastal states” according to USA Today. In People fleeing pricey coastal states for South, West, they highlight New York state’s first loss of people since 1980, and explain that the numbers would have been apparent sooner had it not been for the boom in NYC and its burbs during the 1990s.
Flat sounds just fine. Thank you very much!
From their Living in a bubble? series… Fortune asks Real Estate: Is the party over? and gives their take through a forecast of the 100 largest real estate markets. They predict NYC will be basically flat in ‘06 and loose 3 points in ‘07.
Home sales down and inventory up in October
The New York Times reports Sales of existing homes fell in October from their second-highest level ever the month before and the inventory of houses and condominiums on the market rose to their highest level in more than two years. Anecdotal reports from real estate agents and others that homes were taking longer to sell, a fact that portends a decline in sales and prices in the coming months, economists said. The inventory increase in condominiums and co-ops, of which there was a 5.5 month supply in October, up from 5.1 months in September, has been particularly sharp in recent months.
Big Wall Street bonuses expected (again)
Forbes is reporting that the Wall Streeters and hedge fund people are all expecting big bonuses for the third year in a row. They’ve talked to many happy real estate types who are expecting lots of activity after bonuses are paid at the end of this year and beginning of 2006.
Nat'l housing market softening in '06, will NYC defy?
A.P. reports that the U.S. housing market is set for a gradual decline in 2006 , according a quarterly University of California, Los Angeles, Anderson Forecast. Although New York City has often managed to defy national trends, it might not be the case this time.
