Tuesday, January 31, 2006

Bloomberg says home prices will go down 10%

Thanks to the Housing Bubble blog, I came across this news. Mayor Bloomberg has predicted that NYC housing prices will decline by 10% over the next few years. I can't wait to see what kind of response this will get in the media.
I suppose there are all sorts of reasons why he might want to play up a gloomy scenario so people will be prepared for shortfalls in tax revenues. But given how much prices have gone up, a 10% decline over a few years seems quite reasonable.
I do have my moments of doubt (and today would be one of them, with this news right on the heels of another rate hike!) about my own purchase-in-progress, wondering if I should have just forced myself to wait a couple more years to buy. But I still think the place I'm buying is the best deal I've seen so far for an apartment that meets my criteria. If all goes according to plan, I can ride out a price decline. If all goes according to my dreams, in about 5 years, prices will have crashed dramatically, I'll have gotten a few raises, I'll have saved enough cash for another downpayment, and I'll be able to rent out one place at a profit and buy another! But plans and dreams are one thing, real life is another. Pass the Maalox, will ya?

1 comment:

Nina Smith said...

You've made a smart choice and your long term plan makes good financial sense. Don't panic!