NY SUN: "The Divide Between Manhattan, Other Boroughs"

[El Pinko]

http://www.nysun.com/article/72033

The Divide Between Manhattan, Other Boroughs
By MICHAEL STOLER
February 28, 2008

With "stagflation" the buzzword of the month, the price of oil rising past $100, an increase in the consumer price index, turbulence in the stock and capital markets, and general uncertainty in the minds of investors, the fate of New York City's residential condominium market — the ever present symbol of the latest real estate boom — is cloudy.

As thousands of condominium units are being developed across the five boroughs, members of the banking community, brokers, and developers have divergent views, but many see a growing divide between the luxury market in Manhattan and some of the more speculative projects in fringe areas. "The state of the condominium market in the New York area is a story of two different markets: the Manhattan prime and everywhere else," the president of SJP Residential, Allen Goldman, said. "The market outside the prime area ain't great, and it's not going to get better overnight."

"The market has deteriorated more in velocity and somewhat less in price outside the prime Manhattan market due to tougher mortgage standards and a weakening economy," Mr. Goldman said. "Novice developers in the outer boroughs will be forced to cut prices to move product in an effort to hang on. For the others who are better capitalized, they will convert unsold condominiums to rentals or simply hold unsold units to rent until the market turns around, similar to what happened in the early 1990s."

He added: "Short of an economic calamity, I believe this twotiered housing market in the New York area will continue for the next 18 to 24 months. I then expect the psychology of the typical middle-market buyer outside the prime area to once again turn positive as the economy strengthens. It always does; it's just a matter of time."



I see fewer and fewer reasons to rule out economic calamity at this point...

[Winterblues]

1. "It always does; it's just a matter of time."

America was always a benevolent nation that did not torture or murder. Things do change. In fact Change is the Only Constant..

[Angry Mollusk]

2. Tell that to the Native American Indians...

America is a benevolent and peaceful nation? The Indian removal act of 1835 was a government sanctioned policy of genocide against Native Americans. How about the policy of slavery against African Americans, and denial of their freedoms even after the abolishment of slavery?