Tuesday, October 04, 2005

The Slowdown May Be Under Way

The New York Times brings us this report on third-quarter housing numbers, which showed a decline in median price as well as a buildup in inventory, even in seemingly ever-hot markets like New York.

"A real estate slowdown that began in a handful of cities this summer has spread to almost every hot housing market in the country, including New York.

. . .

In Manhattan, the average sales price fell almost 13 percent in the third quarter from the second quarter, according to a widely followed report to be released today by Miller Samuel, an appraisal firm, and Prudential Douglas Elliman, a real estate firm. The amount of time it took to sell a home was also up 30.4 percent over the same period.

. . .

In Manhattan, the average sales price of co-op and condominium apartments fell 12.7 percent, to $1.15 million, in the three months that ended on Sept. 30 compared with the second quarter, according to the Prudential Douglas Elliman report. The median sales price - which means half of homes sold for more and half for less - fell 3.2 percent, to $750,000.

. . .

What is more, some mortgage lenders have started to tighten credit standards, making it harder for buyers to get loans.

'Low interest rates and easy credit standards are just about over,' said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley."

Link:

Slowing is Seen in Housing Prices in Hot Markets