Big Drop in LI Luxury Real Estate Prices

Let’s look at a few previous Real Estate discussions, and then go to the latest news:

Last August, we discussed why big housing sales drops do not produce big price drops — at least not right away in the official data.

And, in my own backyard, we looked at all of the high end RE speculation on Long Island.   

All of these concepts eventually led to a nice piece on pricing in the NYT:  The Hidden Truth About Home Prices (which we discuss in detail here).

So you can imagine that it was no big surprise for us to learn yesterday that "luxury" home prices on Long Island — defined as those costing $750,000
to $12.5 million — have slid over 5% last quarter, as Inventory levels doubled from what they were two
years ago.

Here’s an excerpt:

Luxury home prices slid in New
York’s Long Island and Queens in the first quarter as more
property came onto the market and took longer to sell, appraiser
Miller Samuel Inc. and broker Prudential Douglas Elliman Real
Estate said.

The median sales price fell 5.3 percent to $900,000 from a
year earlier and houses took 25 percent more time to lure a
buyer, the companies said today in a report. An oversupply of
expensive houses for sale is reducing demand, said Jonathan
Miller, president of New York-based Miller Samuel, in an
interview.

In the first quarter, it took owners 121 days to sell their
homes, compared with 97 days a year earlier, a sign demand has
weakened.

You can see why announcements from the NAR such as Home Prices Seen Rising in ’07 are so absurd.

~~~

See also: 

Why Housing Jobs Have Not Fallen Much

Construct_2

and

U.S. Foreclosure Filings Rise 47 Percent in March

 

>

Source:
Luxury Home Prices Fall in New York’s Long Island

Brian Louis
Bloomberg, April 18 2007
http://www.bloomberg.com/apps/news?pid=20601093&sid=aUbPAJksJYEs&

LI Home Buyers Feeling in Control
Carrie Mason-Draffen
Newsday, April 18, 2007
http://www.newsday.com/business/ny-bzhous185175947apr18,0,2697206.story?

Prudential Douglas Elliman
LONG ISLAND MARKET OVERVIEW  4Q 2006
http://www.prudentialelliman.com/MainSite/MarketReports/ReportsMenu.aspx

Category: Economy, Psychology, Real Estate

1987 versus 2007

I keep repeating I am not a fan of the 1987 parallel to 2007. I am not saying its impossible — just less likely than other potential parallels (My choice is 1973, Doug Kass’ is 1937). Yet many readers keep drawing my attention to the 1987 conclusion. As a service to those of you who…Read More

Category: Markets, Psychology, Technical Analysis, Trading

Largest Commercial Landowner in the U.S.?

Category: Economy, Real Estate

Why This Isn’t Stagflation

Category: Economy, Federal Reserve, Inflation

Neil Young Live at Massey Hall

I haven’t heard this new CD/DVD yet, but the reviews are great, and the live version below is outstanding: Live at Massey Hall.


Neil Young

Neil_young

I saw CSNY this summer — great show.

More Neil vids after the jump . . .

Read More

Category: Digital Media, Music

Big Picture Update

Category: Weblogs

Some thoughts on Taxes

Category: Economy, Politics

WSJ Wins Pulitzer for Option Backdating Investigation

Category: Corporate Management, Financial Press

Media Appearance: Kudlow & Company (4/16/07)

Category: Media

U.S. Dollar Index Breaks Down

Category: Currency, Economy