Tired of Gloomy Housing News? REBNY Offers Bright Side

What downturn? Those sick and tired of doom-and-gloom housing statistics should contact the Real Estate Board of New York, which is happily sharing data that it says proves New York continues to rock.

The Big Apple is “bucking the national trend of falling real estate prices” with average sales prices climbing to $824,000 in the second quarter, up 12% from a year ago, REBNY says in a recent report. Citywide apartment prices –- which include condos and co-ops — jumped 21%, topping $1 million, while Manhattan’s average sales price soared 29% to $1.55 million. Queens gained 7%, while brownstone-filled Brooklyn’s average climbed just 3%.

“In the midst of falling property values nationwide, prices are still rising throughout New York City,” says Steven Spinola, REBNY’s president.

Mr. Spinola disputes the notion that a few tony penthouse sales boost the average: “Our report shows that even when removing the ultra-end sales, the Manhattan condo market still had substantial price gains.”

This cheery data comes as Reuters reports Manhattan apartment prices could fall as much as 20% next year. Meanwhile, the closely-watched S&P/Case-Shiller home-price index, which only counts resold single family homes, said Tuesday that prices in 10 major metropolitan areas fell a record 17% from a year earlier. New York, it said, fell nearly 8% year over year, slipping a hair from April. (To be fair, it also includes several New Jersey and Connecticut counties –- and even one in Pennsylvania.)

REBNY’s numbers, it says, prove New York – and just New York - continues to shine. That just has to continue as layoffs and financial sector losses mount.

http://blogs.wsj.com/developments/2008/07/29/tired-of-gloomy-housing-news-the-real-estate-board-of-new-york-offers-bright-side/

Just wait until 15 CPW and the Plaza aren't skewing the median numbers. Then you're REALLY going to see what the real situation is.

“Our report shows that even when removing the ultra-end sales, the Manhattan condo market still had substantial price gains.”

r-i-i-i-i-i-i-i-g-h-t....

Do you think that Mr. SPINola is SPINning the data? Certainly Mr. SPINola would never do such a thing and I can't imagine why he would.

As REBNY would say, prices only go UP. Buy now before your priced out forever!

You guys are going to wind up being sent to a re-education camp in LIC if you keep this up.

NY real estate is a great investment as long as you have a 3-year long-term horizon. And LIC real estate, too . . . it's obviously included in Manhattan in the sales stats that show a 29% jump.

Sales stats that show a 29% jump? Who came up with those stats? The guys in Georgia who bought the monkey costume and told everyone it was Big Foot?

Never mind, I thought you meant sales volume was up 29%, not prices.

I would like to know how prices are up 29% from last year because none of the sales in the "If you can demonstrate market movement with comps..." thread show that kind of jump.

"This cheery data comes as Reuters reports Manhattan apartment prices could fall as much as 20% next year"

20% by next year. What about 18 or 24 months from now? 30%, 40, 50%.......

Gov Paterson made an appearance this AM on CNBC. If anyone thinks they've read an excessive amount negativity around here, the Gov's statements made this sound like Alice in Wonderland. He is most certainly concerned about the fiscal issues facing the State.

There was also quite a bit of discussion this morning (CNBC) with regard to the NYC's major bank/broker issues and the weakening commercial real estate market. It thought it was informative & unusually absent of sugar coating.

Gov. Paterson is such a pessimist and negative person. He needs more excitement in his life. May I recommend the Emperor's Club?

"Gov. Paterson is such a pessimist and negative person. He needs more excitement in his life. May I recommend the Emperor's Club?"

---------------------

Perhaps to some but I find him to be a straight shooter that tells it the way he sees it. IMO, refreshing and very unusual for a politician. He will be speaking at the Democratic National Convention and based on his CNBC comments, it will not be a sugar coated speech.

No comment on his personal life. :)

Yeah, Paterson is one of the most honest politicans in America. That is why I don't think he would have ever been elected governor had he run on his own. Voters like to hear spin.

The sun'll come out
Tomorrow
Bet your bottom dollar
That tomorrow
There'll be sun!
Just thinkin' about
Tomorrow
Clears away the cobwebs,
And the sorrow
'Til there's none!
When I'm stuck with a day
That's gray,
And lonely,
I just stick out my chin
And grin,
And say,
Oh
The sun'll come out
Tomorrow
So ya gotta hang on
Tשּׁ tomorrow
Come what may
Tomorrow!
Tomorrow!
I love ya
Tomorrow!
You're always
A day
A way!

Finally I agree with malraux.

But the sun is out today.

"Prices are sticky downward." --Econ 101

So, if inflation rises and housing prices stay the same (which is effectively a softening of the real estate market), then, a $1 million home purchase today could actually seem like a good deal a few years from now. Could it be that now IS the time to buy real estate?

Hilde: "Oh, master builder! My beautiful, beautiful castle! Our castle in the air!"

Solness: "Built on a firm foundation!"

Henrik Ibsen, The Master Builder