New York Foreclosures Rise

JuiceMan: about 5 months ago

This is a stretch even for steve. 14505 for greater LA and 961 for greater New York. 23 in Manhattan. That's a real good comparison isn't it?

This is the perfect example of a garbage post.

alpine292: about 5 months ago

yes, he bought it for $2.6 million, but he had no knowledge of the condition of the house since he never saw the inside!

walterh7: about 5 months ago

alpine292 "Foreclosures don't always bring down prices. Check out this foreclosure in my part of NJ, which just sold at auction last Friday for $1.3 million:"

The 'animal house' was auctioned for $1.3mm??? Didn't the neighbor buy it at auction just last year? For $2.6mm?? That doesn't sound right. Things aren't that bad.

stevejhx: about 5 months ago

"they have the abatement program"

Which, economically, goes right to the developer as higher prices.

alpine292: about 5 months ago

The new buildings pay peanuts in taxes since they have the abatement program.

stevejhx: about 5 months ago

Yes - something has to be done about NYC's property tax system. You can own a multimillion dollar single-family home in Brooklyn and pay $5,000 in property taxes per year, and own a studio condo in Manhattan and pay the same amount.

stevejhx: about 5 months ago

You're right that they don't "always" bring down prices, or bring them up. Usually, however....

Yes it is notoriously difficult to foreclose in title theory states like NY. California is a lien theory state, making it much easier.

There are going to be many foreclosures in the outer boroughs, where about 80% of loans were subprime / Alt-A. That will drive prices down here in Manhattan, which has the added problem that about 60% of recent mortgages are jumbo ARMs which won't reset for another 3-5 years. When they do....

alpine292: about 5 months ago

Foreclosures aren't the only thing rising in NYC:

http://www.nypost.com/seven/07022008/news/regionalnews/new_city_tax_hikes_hit_home_118180.htm

alpine292: about 5 months ago

One thing to note about NY is that it take a million years to foreclose on someone... 450 days vs. only a matter of weeks in other states, like California.

alpine292: about 5 months ago

Foreclosures don't always bring down prices. Check out this foreclosure in my part of NJ, which just sold at auction last Friday for $1.3 million:

http://pa.photoshelter.com/gallery-show?G_ID=G0000FatF0VW9Xh0&P_ID=&start=0&pagtotal=27

stevejhx: about 5 months ago

Yes, that makes a huge difference.

Foreclosures in West Hollywood are minimal. Foreclosures in the Inland Empire are maximal. Prices throughout are down.

Do you think that foreclosures in Brooklyn, Bronx, Queens, SI won't affect property prices here?

They will.

Who was it who published the plankton theory yesterday? Prices in Manhattan were pushed up from the bottom through subprime and Alt-A in the outer boroughs, and pulled up from the top by people who overpaid themselves to issue and securitize those worthless mortgages by giving them triple-A ratings. Both of them are gone.

I agree with you on a lot alpine, though not on this, and not that NJ won't suffer as Manhattan does.

alpine292: about 5 months ago

foreclosures are down in Manhattan... from 25 to 23. Nice try.

stevejhx: about 5 months ago

New York's foreclosures climbed 49 percent, to include 961 properties with an average lien of $460,970 for a total of $424 million in outstanding debt. Los Angeles had about 15 times as many foreclosed properties set to be sold.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYchgMdpnpC8&refer=home

Put it in the context of today's market figures: we're 2 years behind the rest of the country, but the bloodletting is about to begin.

Hey Spunk, ask me if I still think it's better to rent than to buy.