Will Manhattan’s real estate take a nosedive along with the stock market?
After all, this has been one of the most resilient, healthy markets in the county, despite the slow-downs, sub-prime messes and higher interest rates others were suffering through.
Here was that “fantasy market” where the average price for an average apartment rose to $895,000.
(Back in the hollows of Tennessee where I live, that same money could have bought you a mansion; plantation shutters and all).
So what does this market really depend on?
Bonuses. Many who are buying this expensive New York real estate are in the financial business and apparently depend on their year end goody packages.
Pickings could be slimmer this year because of the recent market volatility.
But not so fast.
As with any other market you have to take it apart and analyze it layer by layer.
Inventory is still somewhat tight, which keeps prices from falling too far.
We’re looking at very rich folks who can sacrifice in other ways and keep their real estate when times turn difficult.
And then there are the co-op boards, which is a fascinating subject in and of itself.
In a nutshell, [tag-self]apartment[/tag-self] buildings are controlled by the [tag-tec]co-op boards[/tag-tec]. They are miniature corporations that residents must buy into. Hmmmm.
(And we thought dealing with a [tag-ice]condo[/tag-ice] homeowners association was a pain)
New buyers have to get past these “communist committees” which in many cases is much harder than actually getting a loan at a very conservative bank.
So with this extra watchdog protection in place, it would be very hard for people with less than stellar financing to get in.