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Manhattan Home Prices…Plunge? CNNMoney.Com July 7, 2009

Posted by John Watch in News Feed.
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Report from CNNMoney.com.

A couple of things I wanted to point out in this article.

NEW YORK (CNNMoney.com) — “The housing bust has finally clobbered super-pricey Manhattan home prices.”

I’ve never heard the word ‘Clobbered’ used for real estate.


“Prices fell between 13% and 19% compared with the same quarter last year.”

That doesn’t sound like much of a “Plunge” to me. Decline maybe. Especially when only compared to LAST YEAR.

“Driving the increase were sales of studio apartments and one-bedrooms, both of which gained market share,”

Shouldn’t these properties be evaluated on their own criteria and standards then? Or is it just me…

“It’s value-based shopping,” said Pam Liebman, chief executive of the brokerage Corcoran Group. “People are coming back into the market, but nobody is going to overpay.”

That’s right, so why compile high-value and low-value property data and public records?

Of course, in Manhattan “value” means studio prices that go for a median of $400,000 and one-bedrooms that fetch $650,000.

That’s “high-value” in most cities.

“There are still risks to the economy, both national and local,” Greg Heym said. “But job losses have slowed, consumer confidence is higher and the stock market returned more than 30% during the quarter.”

The only risk is repeating the same process that got us into the mess

“But people shouldn’t think that a bottoming out means a quick rebound,” he said.


“The entry level market did not fall as far as the high end,” Miller said. “The difference was a jumbo versus a conforming mortgage.”

So seperate the data for the entry level vs. the high end. “Jumbo data vs. Real data”  I guess…

Once the economy recovers, the prospects for the Manhattan housing market are good. The market could quickly tighten again. There’s little new building going on. As a matter of fact, not a single building permit was filed in all of February, according to Heym.

Not so good for builders and contractors. But good for a possible “recovery.” We already have an oversupply.

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