Condo prices always seem to be the first affected in a housing downturn. One of the problems with condos is that the original people move out, and more and more units turn into rentals - with people living there who really don't care about the building or other tenants. Prices for rentals always seem to drop quickly, too, in a downturn. Yet, folks like condos in many areas. Often, you can rent one for less than the cost of buying one - the owner eating the difference. NY prices and east coast prices went up 15% a year for 6 years, outpacing normal price increases. They are coming back down to Earth. Yes, things were 25 to 50% too high in many markets, meaning they will drop 25 or 35% by the time things are done - depending upon the market, location, quality of unit, location of unit...and whether Single Family housing is available and for how much. NY City will always command a premium. Suburbs can drop further. The 'bubble' is deflating, and yes, those who bought high might suffer. On the other hand, mnay who bought 'low' six years ago are still in good shape. Not as rich before, and if they didn't use the house as an ATM machine, they are still ahead of the game. t.
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