Slump in New York Tri-State Area
"The chill in the Manhattan residential real-estate market is blowing across the city's suburbs and outer boroughs.
From Westchester County to Fairfield, Conn., to Bergen, N.J., the tri-state area is seeing prices and numbers of sales stalling or dropping, while inventories of properties are starting to pile up.
. . .
Economists point to higher mortgage rates as the culprit, making home construction more expensive after four straight years of record sales.
In Brooklyn, residential prices went up more than 40 percent between June 2004 and June 2005. But they dropped 10 percent between this past July and the end of September.
On Staten Island, prices also are cooling down, with brokers noting longer sales times and homes more often selling below the asking prices.
Queens prices had a small decrease from July, while properties on the market increased substantially from the third quarter of last year.
. . .
Meanwhile, in leafy Westchester County, monthly numbers posted by the New York State Association of Realtors (NYSAR) show a 6.8 percent fall in median price, from $730,000 to $680,500, just from August to the end of September.
And the sales numbers are even worse, with a whopping 36.3 percent drop, from 842 to 536, for single-family homes.
. . .
The Westchester-Putnam Multiple Listing Service's third-quarter sales report showed a 12.7 percent drop in the number of single-family home sales, from 6,700 to 5,850 in the last quarter.
. . .
A Post survey of northern New Jersey brokers showed similar dismal results, with prices ranging from flat in working-class areas to dropping nearly 10 percent in more affluent communities.
In Connecticut, the latest market report by Prudential shows single-family homes to be down 4 percent from last year's figures.
. . .
[A]dding more fuel to a downswing is President Bush's Advisory Panel on Federal Tax Reform, which is recommending that the administration do away with mortgage-interest deductions.
According to the National Association of Realtors, housing prices could decline 15 percent if the Bush administration agrees with the panel."
I just want to go on record here that the tax advisory panel recommendation on eliminating certain mortgage interesdt deductions will be absolutely dead on arrival. I am not saying it doesn't have merit (as it applies to second homes, etc.); just that this particular sacred cow will not be touched.
Seller's Slump in Tri-State