New York Real Estate Market Takes Massive Hit!
Two places I enjoyed living in my youth was New York and San Francisco, or "The City" as it was called.
Lord Toynbee wrote the HISTORY REPEATS ITSELF. So have no fear. What we see happening will create opportunities New York went Bankrupt and the US bailed them out with muni bonds referred to as Big Mac's For Municipal Assitant Corporation. New York cleaned up their act and it became the destination spot of the world. Have no fear it will happen again.
The same is for San Francisco. I came there in 1983 bought a flat in Pacific Heights out of foreclosure and fixed it up and 11 months later sold it for $110,000 more and bought in Woodside at same sales price of SF but $225,000 less than list. The place in SF is worth more now than the place in Woodside.
New York is a repeat of last weeks article on SF: 56% fewer sales compare to a year ago, 30.8 months of supply and 11.3% discount from list. West Chelsea built a high end boutique condo known as the Getty and slashed sales prices by 46%. Adding to the "eye poppers", Chelsea Mansion sells for 59% less than asking, Michael Price's Upper East Side Townhouse sold for 52% less than asking...great neighborhood!!
Los Altos is having 10% cuts on a regular basis; as is Cupertino and the Willows, all matching a trend throughout the region of sales price cuts.
How about 251 Middlefield in Palo Alto cut 42.86%! Sounds like NYC!
While we are seeing price cuts and movement out of the area the Census reports that New Residential Sales for July are +13.9%. Looks like that movement out to affordable new homes is the trend.
Realtor.com the CheerLeader for the Real Estate Industry is beginning to be a doubter. Home Prices Hit a Record High.
Outside the area La Honda has gone from a Zillow forecast of a 6%+ increase in a year to 8.5% increase in the next 12 month period. While the country goes higher, Redwood City forecasts a 1.2% increase in 12 months.
While we see list cuts and days on the market in our area, the California Realtors Association saw a 28% increase in July. Further supporting my theory that they are moving east.
For all those looking for value, we have it now! Start your search. There is no bell that rings at the bottom of a market. Find the home of your dreams, make an offer 10% under list and see what happens.
Sellers, you waited too long, but do not fear. Don't try in put in a high list in hopes that you cn negotiate an offer. They will not come it. Price the property 10% under the closest market and hope for multiple offers.
By the Way...I would take it as a complement for a referral of any friend or relative.
Gary
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