Thursday, September 15, 2005

Real Estate Price Drops in NYC

On Tuesday, I said "call me crazy, but I don't need a crystal ball to believe that a 46% decline over 9 years is highly unlikely, at least not in New York City!"
In today's New York Times, in an article about the housing market, they said that "steep drops in prices in the early 1990's [were] nearly 47% in Manhattan."
After I put away the defibrillator, I continued reading the article-- that figure is adjusted for inflation. Actual prices were almost flat during the early 1990s, declining just slightly but returning to '89 levels by about '99 according to their graph (which unfortunately does not appear online). So since my earlier calculations did not adjust for inflation on either the renting or buying side of the equation, I think my original results still hold true. Right? Please? I hope?

1 comment:

Anonymous said...

Yup that was an awesome time to own. If you bought then and owned as many people in NYC did, you are doing quite well.

Doesn't your rent go up 4% each year? That's normally the case, if so than your rent moves with inflation. Home prices on average go up 4% annually based on historical data. So the two are suppose to move side by side.