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1. Stock is mostly a tech thing, which is a smaller percentage of NYC home buyers. 2. Real estate is a safe haven asset to put capital into. In uncertain mark
by hx8 1y ago
1. Stock is mostly a tech thing, which is a smaller percentage of NYC home buyers.
2. Real estate is a safe haven asset to put capital into. In uncertain markets some buyers will choose real estate over stock or other more risky investments. NYC real estate is a highly valued asset globally.
3. Real estate prices in prime global locations (London, Dubai, NYC) are determined more by global liquidity than by local wages.
4. Recessions often impact real estate prices less than stock prices. 2007 was an outlier because of how many defaults occurred in real estate. In general the mortgages today are much stronger than before.
5. If mortgage rates decrease then that would have upwards pressure on housing valuations.
EDIT: Prices might come down, but I wouldn't expect fantastic bargains in NYC.
- master_crab 1y agoI live and own in NYC. Stock is very much also a part of comp in finance as well (I’m not in it, but my wife is). I think you are spot on that prices will come down slightly (bonus pools will drop and that matters) but NYC real estate is rarely a bargain (or at least hasn’t been since 1998).
- ardit33 1y ago2009 - 2013 there were some good bargains in LIC and other areas. It will take a major recession to see some prices come down again to some reasonable level. Also, I wonder what the volume of transactions is. Because I see little inventory (I was looking into Brooklyn), and perhaps only new construction is selling, which means it skews prices higher (new construction is always more expensive).