Happy New Year to all. Here's hoping for a better 2009! While many feel as though we are in for more of the same, I like to think that as all of the liquidity that has been injected to the economy over the last couple of months finally kicks in, things will start to improve. Also, a new administration should be a plus as well. On the other hand though, Manhattan real estate still will be in for more pain. The New York City economy will continue to contract as the lack of Wall Street bonuses starts to take hold. Restaurants will go out of business, commercial vacancies will increase, and new condos will go unsold. Hey, we all enjoyed life while the bubble inflated...well now we will have to deal with some pain as the air gets let out. We didn't creat this mess overnight, and we will not get out of it overnight either.
My wife and I are enjoying some R&R in the Carribean, and the condo complex where we stay has more units on the market than either one of us can ever remember. One owner who bought his condo in 2008 is all ready trying to sell and he also has his home in CT on the market as well. His stock portfolio is down 40%, he is leveraged, and he is seeing the last 40 years of his hard work go down the tubes. Unfortunately, he is not an isolated case. So while New York City is down 20% from Q4 of 2007, there may be more pain ahead for Manhattan real estate. Great opportunity for first time home buyers who have down payment cash that they kept ut of the stock market....not such a good time to be one who needs to sell.
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