January 22, 2006

Escape from New York: New York City mayor freaks out the market: NYC mayor: housing market "dramatically" slowing


Wow.

Wow.

Thanks HP readers for the link

New York City Mayor Michael Bloomberg on Friday said the real estate market was slowing "dramatically" and only a "miracle" could stop soaring mortgage rates from eating into housing prices.

Consumers are definitely feeling the pinch of higher mortgage lending rates and are not quite as eager to snap up a new home especially at time when house prices in the Big Apple are near record-highs, the Republican mayor said in his weekly radio show.

"The real estate market is slowing down dramatically and we‘re going to have a problem down the road," Bloomberg said.

"If people who want to sell their houses have to wait a longer time before someone comes along and buys it, it would be a miracle if prices didn‘t start to go down," he said.

7 comments:

Out at the peak said...

LOL. I love your reference to Escape from New York! That was such a dope movie for me for the time.

If politicians start talking, that should add fuel to the panic.

Anonymous said...

It will serve them right.

Bake McBride said...

I live in NYC and can already see the slow down....Not looking to buy anything until 2007 or 2008 when some people are feeling real selling pressure.

The one positive thing about Manhattan real estate is that most Co-Ops require a minimum of 20-25% down. There aren't as many 100% finance deals in the city so the pop won't be as loud as say Miami.

grim said...

bake,

You've obviously never heard of negative pledge co-op loans.

These are loans designed to be hidden from the co-op board to make buyers look more qualified than they really are.

Don't believe the hype.

grim
Northern NJ Real Estate Bubble

Bake McBride said...

Grim,
Have not heard about them at all....Then again I'm in no rush to purchase an over valued asset that's about to drop like a rock.

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