We are all for seeding optimism in the community, and of course the community closest to our hearts is in the Real Estate market. And yes, the market is holding steady at the moment, not giving into fear of a double dip as many propose. However, some people may be going too far the other way as well.
CNN Money dropped an article today with the headline – “Manhattan real estate prices up 14%”. While this would certainly be lovely if it is as strong as it seems, CNN buries the truth down below the screen break and far from the large font headline.
Homes sold more quickly than they had been, according to Jonathan Miller of Miller Samuel, the appraisal firm that calculates prices for Prudential. The average home sold during the quarter was on the market just 127 days, down from 167 during the third quarter of 2009.
But all these numbers may make the market appear a little stronger than it actually is, according to Miller.
“Prices aren’t really rising,” he said. “The indicators are rising but only because we’ve shifted to a more normal mix of sales.”
Prices aren’t really rising. I think appraisal companies have a fairly unbiased grasp of that as they represent the banks, who don’t want to give anyone a mortgage, much less one for an over valued home.
But, there is a light at the end of the tunnel for NYC and the article hits a couple of points. 1 in 10 private sector jobs are coming to New York. The stock market is up 10% in the quarter. The length of time a house is on the market is down 25%, and so are the housing inventories since peak inventory in March 2009.
Pam Liebman, our fearless leader, said very aptly –
“We’re in a good, healthy place…Buyers are acting like they did in the past, buying to fulfill their needs, not running with the herd.”
A call for reason, perhaps even Sanity, is a welcoming change.
This Braswellian Life 
Posted on October 1, 2010
0