Some of you may remember this golden oldie. It discussed the increasing difficulty Wall Streeters were having in obtaining mortgages for Manhattan apartments. Among the gems was this statement from a NYC real estate professional:
The problems facing buyers from Wall Street won’t necessarily cause Manhattan apartment prices to slide drastically, said Diane M. Ramirez, the president of Halstead Property, though they could result in slightly less competition for properties and prompt more sellers to negotiate.
Talk about a blown call. From today's NY Times:
...the Manhattan real estate market has just begun a steep slide. It parallels the decline in New York’s financial services industry, and housing analysts say it may continue long after other markets heal.
...housing analysts are predicting a prolonged slump in prices and sales that could last as long as four or five years.
In this year’s first quarter, sales of co-ops and condominiums in Manhattan plunged nearly 60 percent from the first quarter of 2008. Average co-op prices fell as much as 24 percent in the same period, according to various market reports released last week.
How far may prices fall?
[Jonathan J. Miller, an appraiser who prepares quarterly reports on Manhattan] said that during the last big real estate downturn, ... studio apartments were so cheap that he considered buying one on a credit card...
What's in your wallet?