h a large scale, which is very intriguing to me. While searching through many very interesting posts, I came across two that drew my attention because of their approach despite the current market situation. As many people know their has been some debate on the stability of real estate markets in the United States right now due to the current situation involving the market and the rates. So the first post "Resort/Second Home Sales Should Prosper in Current Real Estate Markets," was published by the Trump University Blog, written by Brett Carmen who is a veteran in the real estate industry. His post talks about the movement of people that have money who will move away from renting and into buying in certain sectors because of how the market is situated. The second post "Manhattan Apartment Prices rise in 1-Q-2008," was published by Mitchell Hall who is a successful New York Realtor. His post talks about how despite the sluggish market, prices in Manhattan are still increasing. In the first post I will address the issue involving certain sectors that will thrive during this time of slowing markets. In the second post I will interpret the ever increasing prices in New York for housing. Both are interesting situations and I have left my comments on each of these blogs below, as well as on the individual's blogs."Resort/Second Home Sales Should Prosper in Current Real Estate Markets"
Comment:
First off I would like to thank you for your interesting post on the potential of certain real estate sectors being able to thrive during this pronounced recession by the Feds. As you stated "the demand for goods and services is still high and the wealthy still have plenty of money to spend on discretionary purchases," I completely agree with this assessment. As a potential investor it is not hard to understand that the markets will turn around eventually, it is just a matter of waiting it out. If you have the money as you suggested it is a great time to buy these extra homes or resort condos while the prices are down and the builders or sellers are desperate to unload the properties. Like you said it is obvious that this is the time that casual renters will begin to move away from renting and will lean towards purchasing these properties for personal use or even just an investment. Another great point you made was the foreign investment into these resorts is definitely apparent as we continue to see more and more foreigners coming over to United States for investment opportunities as well as getaways with the value of the dollar falling. One place that this is very much apparent is Las Vegas, every time I go there I feel like a foreigner with 20 different languages being spoken at all times. Do you think that there is going to be more foreign bought properties and condo's than American Investors? Also how long do you feel it will take the housing market to rebound and what effect will that have on the resort and second home sector? Personally, I feel that this is a great time to jump on this sector of real estate if you have the money and the opportunity, and you will not regret it as the market regains property values. Thank you again for your insightful post and it will be interesting to see how this real estate sector plays out.
"Manhattan Apartment Prices rise in 1-Q-2008"
Comment:
I would like to first thank you for your intriguing post on how the prices of condos and apartments continue to increase even with the slowing market in Manhattan (aerial view of Manhattan below). This is a very interesting post, because with the current slumping market situation it is fascinating to hear that the average price of an apartment increased 33.5% compared to the same quarter last year. That seems outrageous with what is happening with the market right now that the average price would be $1,700,000 for an apartment in Manhattan. It is obvious as you state that "prices are up sales are slowing and inventory is risin
g". How do they expect to get people to pay these increases in prices when people can see all the units are not selling? It is interesting that you mentioned the interest from foreign buyers with the fallout taking place on Wall Street, it seems like foreigners are taking advantage of our market with the falling dollar and the market situation. Is it a good thing if citizens are not able to buy the apartments and condos and it's all being bought up by foreigners? Another significant move was the 86% increase of a 4 bedroom plus co-op that rose from around $6,900,000 last year to $12,900,000 this year. That certainly is a major increase even for wealthy, but how do you expect to attract New York buyers with that type of an increase in this recessionary market? Even the median price of a one bedroom apartment rose 12% from $699,000 to $750,000 this year. Truly I do not think this is the best move for the New York property owners to make if they want to generate buyers within the city. Yes, they will still get the foreign investment but I do not know if that is enough to over come the ever increasing build up of unsold units. Thank you for your interesting post again and I guess time will only tell as to the outcome of the current market.
1 comment:
First off, I would like to thank you for an insightful and intriguing blog entry. In this entry, you chose an interesting point of view where you compared the ‘sluggish’ state of the economy and of house prices with the contrasting situation in Manhattan. In both of your comments, you analyzed the situation at hand while asking provocative questions.
For a reader that is not so much business-oriented (but would like to be), you write clearly and eloquently where I can learn more about the current situation of the economy, specialized more in the real estate side of things.
Although you take note of the difficult and troubling times of the market, you remain optimistic and energetic that that the state of the economy is bound to improve sooner or later. You note that the economy is a cyclical entity where it is always shifting upwards or downwards to someone’s or rather a country’s advantage or disadvantage. During these trying times, renters are in a better situation to buy, as the prices of the housing sector continue to fall at rapid rates. Even though the renters with a potential to buy homes are looking brighter than ever, those who cannot currently afford to purchase their residencies are left in a rut. Considering all these issues, you still manage to instill a sense of hope within the people.
One of the most important issues you address is foreign investment; you state, “it seems like foreigners are taking advantage of our market with the falling dollar and market situation.” It is obvious that these foreign investors are helping yet hurting our market, like a double-edge sword. On the one hand, they raise the prices of houses, especially for the Manhattan sector, but at the same time, they are generating revenue that is so crucial and precious, more than ever during this time. It is difficult for me to imagine that foreign investments will not continue to play an important part in our society for years to come, or at least, until the markets improve.
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