Alarming News: Why, that's downright affordable

October 20, 2005

Why, that's downright affordable

Headline: Manhattan home prices drop, average sales price of luxury homes sank 26 percent, to $3.8 million, from $5.2 million.

Posted by Karol at October 20, 2005 08:16 PM | TrackBack
Technorati Tags: Manhattan+Real+Estate New+York+Real+Estate

Comments

The declines are due to gas prices? A guy has to pay $50 a tank rather than $35 so he quits buying $5 million apartments? I don't think so.

I assume that a lot of these luxury apartments were purchase for speculation and not to live in. Otherwise prices wouldn't have dropped so much.

Posted by: Jake at October 20, 2005 09:52 PM

And rents continued to go up I assume?
*groan*

Posted by: jaws at October 20, 2005 10:28 PM

Rents have been stable for years.

And home prices didn't actually drop. The average home sold was just smaller.

"Not everything was down in the third quarter, however. The average price per square foot rose 1.4 percent, to $984, compared with the second quarter and it was up 22.5 percent from the year-ago price."

I wish prices would drop - but it hasn't happened yet.

Posted by: Downtown Lad at October 20, 2005 10:35 PM

Of course, if this is the beginning of the real estate bubble bursting, New York City is in big trouble.

Posted by: Sean at October 20, 2005 10:36 PM

(should've prefaced my comment by saying I'm new to the City--so rents seem astronomical compared to what I'm used to back in my Midwestern home-town)

Posted by: jaws at October 20, 2005 10:40 PM

NYC is in pretty dire need of a market correction, so I'm not sure how much trouble there would be for the city (as opposed to the individual homeowners) - between the lack of space, inordinately high demand and (NDS: cover your eyes) bad laws like rent stabilization, the NYC market is a tough one to predict though...

Posted by: Alceste at October 20, 2005 11:06 PM

Ah - Whatever. I'm still up 400% in 3 years.

Posted by: Downtown Lad at October 20, 2005 11:57 PM

I don't think a bubble's bursting. Gaudy, low-inventory funny money palaces might drop but I don't live in one of those, or own one. This is bad news for P Diddy and Nicole Kidman but for most of us regular people, we can just wait for a glut in the used BMW/Hummer et al market.
http://www.citizen-journal.net

Posted by: Bill Lalor at October 21, 2005 09:30 AM

Actually - the high end seems fairly priced to me. There are only so many 10,000 square foot mansions in the city after all.

But one million dollars for a one-bedroom. That is sheer lunacy.

Posted by: Downtown Lad at October 21, 2005 11:22 AM

I'll take two please. To go.

Thanks.

Posted by: Chad at October 22, 2005 07:51 PM

A million bucks in FL would build a pretty snazzy hurricane proof bunker-like crib. There ain't no snow or state income tax here either.

I escaped NY state in the early 1980's and never regretted it for a minute.

Posted by: Purple Avenger at October 24, 2005 03:00 AM