A reader recently forwarded us this article from the New York Times, and thought it might paint a comparative picture of what is going on here, or what could come to be. We’d tend to agree, however, on a much smaller scale (so far). Everybody, ourselves included, likes to keep a watch on other markets that might possibly compare to ours, but few topics get as much traction as the San Francisco vs. New York debate.
However, we leave that discussion up to you, and thought we’d print a few quotes from the article to get you started:
Marcia Van Wagner, an economist and deputy city comptroller, said that while economists can forecast trends, they have trouble predicting just when a “turning point” will appear. Nevertheless, she said that her agency was updating its economic forecasts as concerns mount, and that she was expecting a slowdown in the real estate market, perhaps later this year or next year.
Last Wednesday, the developers of the new 58-story W New York-Downtown Hotel and Residences on Washington Street found that Manhattan market was alive and well. Michael Shvo, whose firm Shvo Marketing is selling the properties, invited 3,000 people who had expressed interest to show up on the opening day of the sales office for the sale of 159 one- and two-bedroom condos. (Another 64 furnished hotel-style condos will go on sale later).
At 7 a.m., when the office opened, there was a line on the street, Mr. Shvo said. By the time the office closed at 11 p.m., two hours later than planned, he said, contracts for 72 apartments had been signed. Prices began at $2,000 a square foot, he said, or more than $1 million for a one-bedroom.
Don’t think we can’t get there ($2000 a square foot). It’s just a matter of time. Thanks D.L. for the link.
[Update: Since we’re on the topic of NYC again, the other side of the story. Thanks “Balanced Viewpoint” for the link.]
–What Market Slump [New York Times]
–Battle Royale: San Francisco or NYC, if you had to choose [theFrontSteps]