There seems to be growing consensus that the US real estate market has indeed bottomed out. Reuters reports today that the number of transactions, pricing and general mood indicate stabilization. Price increases are unlikely this year, but are expected next year. In Manhattan we are not seeing pricing rise, but we are seeing offers off… [Read More]
FIVE ‘SPECIAL’ STATES: NY IS NOT ONE OF THEM!
Under pressure to do more for troubled homeowners, President Obama is expected to announce to-day a $1.5 billion program to help borrowers in the five states hit hardest by the housing crisis. The initiative calls for pumping money into state housing agencies in California, Arizona, Nevada, Florida and Michigan to fund programs to prevent foreclosure for… [Read More]
ENCOURAGING SIGNS? IS LUXURY MANHATTAN REAL ESTATE ‘HOUSING’?
Today, reports came out on home groundbreaking. (Am I the only one annoyed at how figures are constantly ‘revised’?) So December’s figures were slightly inaccurate….why? And why the month-by-month-drama-queen reporting? I am a firm believer in watching pricing on a month by month basis, but it ceases to amaze me how many people formulate world-shattering conclusions from… [Read More]
BARCLAYS PROFITS DOUBLE: IS THIS GOOD NEWS?
Barclay’s announced its profits doubled! The world is alarmed! Nothing about this alarms me…. Think about the market share Barclay’s picked up when they took over Lehman, buying out the company at a bargain price. Think about the money made as the world population increased their savings in the past 12 months, while Barclay’s… [Read More]
ARE THE BIG MARKDOWNS OFFICIALLY OVER?
Today’s CRAINS posts an interesting article about a distressed debt fund shutting down as they see an end to the deals associated with really bad times….this runs parallel to what we are seeing in real estate: the REAL bargain days are officially over. With more bidders emerging on well priced quality units, the single low-ball-bidder is… [Read More]
LUXURY UNEMPLOYED? THE REALITY…
The Manhattan LUXURY real estate market is a market that addresses about 10% of the population….the very wealthy. The top 10% is experiencing what economists would consider full employment. Maybe this explains the very active real estate market we are witnessing? According to a study from Northeastern University’s Center for Labor Studies, unemployment for… [Read More]
FOUR SEASONS HOTEL ON THE BLOCK
We hear the Four Season’s Hotel is being actively marketed….The magnificent hotel located on 57th Street has room rates STARTING around $ 1,000/night. This made us think: For anyone visiting for 10 days or so per month, $ 10,000.00/month would pay the mortgage and monthly charges for an apartment that sells for around $ 1.75million. It… [Read More]
500 WEST 23rd STREET
The new building planned for the corner of Tenth Avenue and 23rd Street looks like it will happen! The project was recently sold to a Chicago based group. Most of the foundation work is completed already so the project could be completed a lot sooner than expected, depending of course on how fast or slow… [Read More]
THE RICHEST HARDLY EVER SELL.
The New York Times published a story about how the oldest New York families appeared dowdy and obsolete in the boom years, yet now they appear quite brilliant: “What distinguishes the families from other real estate players is that they buy property but rarely sell. They usually have relatively low levels of debt on their… [Read More]
BIG EARNERS: FAIR?
With all the outrage about bonuses, we thought we should examine the subject further. What is fair? Are banker bonuses unfair if they are paid as a result of strong performance? We don’t think so. Especially if the shareholders are compensated equally. They seem extremely unfair if they are paid out regardless of performance. The… [Read More]