
NYC housing prices in near 'free fall,' conditions mirror recession era - mudil
https://www.fox5ny.com/news/nyc-housing-prices-in-near-free-fall-conditions-mirror-recession-era-following-tax-hikes
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gamblor956
Importantly, the housing prices that are falling are those for units at the
top end of the market, i.e., above $3 million in price. A lot of those
expensive condos (25% per the article) remain unsold because they're
expensive, the foreign buyers who used to buy most of them can't get their
money out of their home countries, and now buyers need to pay an additional
tax on top of their condo purchase.

Three's still a lot of demand at the bottom end--if you can find any units in
that range for sale.

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tachyonbeam
AFAIK, that's how it starts. Top end unit sales fall, top end unit prices
fall, and this starts a domino effect. That 3 million dollar condo now sells
for 2.5M. The condo that previously sold for 2.5 now looks overpriced, it
falls to 2M. The condo that was previously 2M now has to sell for 1.5M, and so
on. Eventually, your 1 million dollar condo can't sell for a million anymore,
because you can buy something nicer for one million.

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mywittyname
The pool of potential buyers increases as you move down market. So prices may
fall 25% for the absolute top of the market without affecting the median price
at all.

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KingMachiavelli
> In July, New York City increased its mansion tax – a progressive tax that
> applies to home sales of more than $1 million – to a maximum of 3.9 percent,
> up from a flat-rate of 1 percent.

A bunch of other tax changes and reduced deductions have occured recently that
make buying/owning expensive units more expensive - especially for frequent
buyers/sellers. So I'd be inclined to think the trend is evidence of less
short-term speculation rather than a 'true' downturn in NYC real estate.

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astrea
I don't think all these "recession signs" articles serve any productive
purpose. That aside, the article itself mentions this situation is due to the
hiked taxes. Anecdotally, I don't see many people in my age cohort looking to
buy property anyway, let alone a million dollar condo in NYC. Changing
perspectives?

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gamblor956
It's Fox News. They probably received a mandate from Murdoch to cast it as a
recession-warning to match what Trump has been saying.

(Murdoch kept the Fox TV stations and Fox News when he sold Fox to Disney.)

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t34543
I used to live in NYC, and so much money went to both taxes and housing. I do
hope living costs come down considerably, a lot of people can’t afford to save
while living there.

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rasz
Meanwhile retail rent is all time high with some storefronts going^^^^being
listed but never rented for over $200/ft.

