Bubble Wrap: November 2008

Balm for Nervous Buyers

This week’s New York Times describes the new trend of developers offering special protection to buyers against falling prices and other concessions designed to reassure worried buyers.

Sign now, say Mr. Berger and other developers across the city, and if the economy forces future price cuts, at the closing you will be guaranteed the lowest price available to other buyers. The promise is being written into individual sales contracts, and some developers, like Steelwork Lofts, are filing amendments to their offering plans so that they can extend it to all buyers and include it in their advertising.

Incredible shrinking demand for MTA bridges and tunnels

The Daily News details how the number of drivers using MTA bridges and tunnels has decreased steadily by 4.8% over the past year, causing budgetary problems for the agency

Much of the 12-month slide can be attributed to high gas prices. But last month’s downturn may be the result of commuters no longer having jobs to go to in Manhattan, officials said. Traffic at the MTA’s four Manhattan crossings was down on average about 7% from September to October, even though gas prices had fallen, Moretti said.

New Jersey's budget deficit triples to $1.2B

The Star Ledger reports on the significant reductions in state revenue and the Governor’s new urgency to find savings while keeping the formerly announced stimulus package to aid food banks, heating programs, and business climate reforms.

Corporation business taxes were off by nearly 16 percent from the administration’s projections, and income taxes by 14 percent. The sinking fortunes of banks and the housing industry prompted the financial institutions tax to drop 55 percent, and the realty transfer tax 38 percent, below projections.

Corzine, a former chief executive of Goldman Sachs, said last month was the most volatile he’s ever seen. He cautioned that the budget projections are certain to change again.

Take My Park Avenue Apartments, Please!

The Observer reports on a UBS exec who has two Park Avenue apartments listed, with both going through significant price cuts, and one actually listed below what he originally paid for.

Anxiety has slowly crept into the normally high-chinned little world of Manhattan luxury real estate, though that doesn’t mean the very rich trying to unload very expensive New York apartments are actually getting desperate to sell. But maybe desperation is around the corner.