Lehman/AIG To Push Manhattan Residential Prices Down [Housing Tracker]

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

House Sales/Price Data

Upper West Side. “Among those with great faith in the future of the New York City real estate market is the board of the Franconia Apartments on W. 72 Street. Those with a memory for such things might recall that it had a perch available for rooftop plopping. The building was asking $8.7 million for "the rights to build a deluxe custom duplex home on its rooftop." A tipster writes the following terse, yet attention-getting email: "Board rejected full price offer!” For real.” (Curbed, Sept. 15) 

California's New-Home Sales Dive 57%. “California Building Industry Association trade group and research company Hanley Wood Market Intelligence: New-home sales in California dropped 57% in July compared to July 2007, falling from 5,437 sales in July 2007 to 2,348 sales in July 2008. Similarly, new-home sales in California dropped 58% year-over-year in June. The median price of new homes in the state dropped 11.9%, falling from $419,990 in July 2007 to $369,991 in July 2008. Single-family home sales dropped 54.4% y/o/y in July, while single-family home prices dropped 17.4%.” (Inman News, Sept. 15) 

New York Housing Market May Feel Wall Street Woes. “In Manhattan - where the median-priced home cost more than $1 million - prices were actually up 14% in Q2’08 from Q2’07… Jonathan Miller of Miller Samuel appraisers: Monday's cataclysm on Wall Street could be the event that finally pushes Manhattan property values downward… Lina Panza, a real estate agent with… several clients at Wall Street firms: Potential homebuyers with Wall Street jobs have already been looking at smaller houses or putting off their real estate search… The roughly 25,000 workers at Lehman, as well as many of the 60,000 at Merrill, are likely to be hunting for new work. However, any downturn in prices is likely to be met with an influx of foreign buyers, taking advantage of the weak U.S. dollar.” (CNN Money, Sept. 15)

RMLS: Prices Plummet 7.3 Percent. “Oregon Regional Multiple Listing Service: Portland-area home prices fell 7.3% in August compared to August 2007… the biggest y/o/y declines since…1996. The region's median home price [peaked at] $302,000 in August 2007. But a ballooning supply [of] homes combined with demand pinched by mortgage market troubles drove down prices to $280,000 last month… The last time prices were lower than this was February 2007… In August, the average [time on the market was] four months. The inventory of unsold homes remains stubbornly high at 9.9 months. Closed sales continue to be down about 30% compared to August 2007. Pending sales are down 22%.” (The Oregonian, Sept. 15)

How Does It End? When Housing Prices Hit Bottom. “In Southern California, sales of existing homes are running ahead of year-ago levels. And various statistics indicate the rate of price decline is decelerating. Still… there is a strong argument that says home prices in the region will continue to decline. Credit Suisse: Housing prices are still high relative to income levels, and will probably decline for another 12-18 months. Peter Hong, LA Times: Prices remain historically high when compared with people's incomes… Low interest rates can make pricey properties more affordable, but that's meaningless if you can't get a loan… Most lenders have tightened their requirements so much that even people with good credit often don't qualify.” (LA Times, Sept. 14)

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Comments

[Kath H.:]

"In Southern California, ... Credit Suisse: Housing prices are still high relative to income levels, and will probably decline for another 12-18 months."

How true. Only drug dealers can afford housing in California. Reporters state that empty houses are becoming crack houses in the inner cities. Perhaps they were always crack house and only the crack dealers could keep up their mortgage payments!

2008 Sep 16 08:03 PM

[sundrenched:]

I guess these bankers will all have to move to Hoboken, NJ now.

2008 Sep 16 09:04 PM