This morning I read an interview posted on RISMedia about how much scary mis-information is being broadcast and written about the financial condition we are in and how it is affecting the housing market. That has been my impression, as well. Out here on the street, there is still buying and selling going on, a fact which would surprise many people.
As a realtor in Brooklyn, the first question I get when I met someone is "Is the market as bad as they say?" I have to answer no. The reality is more nuanced.
For example, although it is harder now to get a mortgage, it is not true that it is impossible. Sales volume in Brooklyn and NYC in general is down, but prices in our area are not in a free fall. Buyers are looking for a value proposition, which includes price first, but may also include condition and location. Manhattan prices actually increased slightly in the 3rd quarter of this year, although that may have been a function of the pull of a few extremely expensive apartments (see the Plaza).
Clearly, after the huge infusion of capital into the US Banking system announced yesterday, it would be foolish to claim a crisis does not exist. It just has not yet swamped the need of families to find a home with more space, or to dispose of a parent's home or to divide community property during a divorce. These are events that occur without regard to market conditions.
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