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Update March 18, 2017: The Fed signaled that it will hike rates mid-year.
Update February 24, 2015- The WSJ reports, “Federal Reserve Chairwoman Janet Yellen, sounding upbeat about the economy, started laying the groundwork for interest-rate increases later this year.”.
Update February 6, 2015- the strong jobs growth numbers means that the Fed might start mentioning raising interest rates as soon as March.
December 8, 2014- The WSJ reports that the Fed will likely raise interest rates in 2015. This will instantly and dramatically cause housing prices to drop. the free money given away by the Fed is why real estate prices are so high.
All of those greedy real estate developers who evicted tenants in BPC, renters willing to pay a lot of money for apartments, could be left holding bankrupt condo projects. This same thing happened before after the 2008 crash. For example, 225 rector and 2 River Terrace both were in serious financial trouble due to lack of buyers.
Call it real estate karma. The injustices the scumbags do to renters comes back to hit them when they try to sell their condos.
I don’t disagree that prices are too high but isn’t high end real estate just another vehicle for money laundering/tax avoidance by foreigners. Also a possible hedge against the home currency (Ruble/Euro) and safe haven flows? Just a thought…
I agree with NN. The .5% need a safe place to park their money. It isn’t just NYC, same in London and other capitals as well i imagine.
You are correctly referring to the trophy apartments of $5 Million and up. The regular houses are already having trouble and will tank soon. This is a bubble deflating as we speak.