You will not steal this house!
I keep hearing tales from my colleagues about sellers who, upon receiving offers, acknowledge that in the present market they should probably accept it but decide they'll "hold out until the market recovers". This is a wonderful strategy if you have the resources and time to employ it but what none of us know is when the market will recover. Some of us think that we've just seen a market correction of 20% and think that the correction is not over and in fact probably has still more to go. If so, then we're in a new world where houses will not be worth what they were worth last year any time soon. Like, for the next 5 years. Others are more optimistic and predict a full recovery by this coming summer.
So you have a choice: accept the fact that the market has just shifted downward and plans to stay there for a long time or hang on and wait 9 months. If we come roaring back, lucky you. If prices keep dropping, you won't be happy.
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3 comments:
My fearless prediction; in Greenwich, we don't see 2006/early 2007 prices again until 2012, at best. Even in Greenwich, I think a lot of loose lending enable the rapid price rise that won't happen again. If you look at the 1989 real estate bubble, for many parts of the northeast, prices did not return to the 1989 peak for 7 to 8 years if I recall correctly from an NY Times article several years ago. If 1989 is any guide, we won't 2007 prices until 2014.
Cos Cobber
Cos Cobber.
My prediction of 5 years works out to your own, Cos Cobber, at least if my math (2009 + 5) is correct. Bad news for folks who bought recently but if it brings into town younger, less prosperous families, that's not a bad thing, to my mind. Of course, that may also bring more kids who will need to be edukated at our expense. [deliberate misspelling - he's trying to be funny again. Ed]
Here's a related thought - if the (Greenwich) world comes crashing down, will we see an influx of students into public schools because their parents can no longer afford private school? We pay, what, $14,000 per child to turn their brains to mush ? That could add up quickly.
The price of Leona Helmsleys house was dropped $30M. http://www.christiesgreatestates.com/properties/view_57484/
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