Property Grunt

Friday, March 10, 2006

Just Bring It!

you've been mouthing off about it for quite awhile... read it and
weep... along with all the others that read your blog and waited for "blood in the streets"...

Now I was preparing a velvet glove response to this comment with witty repartee about not eating red meat and putting together a power point presentation until I went over to the main man himself Jonathan Miller. And let me tell you good people his words brought out the bad mother****** within the Grunt. That ruthless, relentless force within all of us that lays waste to any jabronis who challenges us and tries to punk us out. So let's get this clear folks, velvet gloves are officially off. Anyone challenges me on whether there is a bubble or not is going to be tasting the iron fists of the Grunt.

This what this reader was referring too:

Manhattan condos up 20 pct in 2005, report says Thu Mar 9, 5:09 PM ET

Median prices for condominiums in Manhattan rose 20 percent to $770,000 in 2005, while cooperatives rose only 6 percent to $649,000, according to reports on Thursday by the Real Estate Board of New York (REBNY).

REBNY's Cooperative and Condominium Reports said the downtown area south of 42nd Street had the highest price for condos at $849,000, a 27 percent increase from 2004.

Northern Manhattan condos saw the highest percentage increase, climbing 46 percent to a median of $364,609.

Co-ops on the West Side rose 19 percent to a median of $722,000. For the first time, the average sales price in this neighborhood climbed above $1 million to $1,087,950.

The median price per square foot for Manhattan condos rose 25 percent to $951.

"The downtown market, which hit a 10-year high in 2004, continues to flourish, and price increases in all neighborhoods demonstrate the continued desire to live in New York," REBNY President Steven Spinola said in a statement

I am sure the offices of REBNY were giving each other high fives as they launched another public relations coup slapping away any fears of bubble trouble. But here's the problem with this data. It is doesn't dictate what is happening now. That is bigger issue. In fact I am a little more alarmed about what they have presented because it means that the market is really overpriced and that we are definitely due for a correction. What we need to be focusing on is with the current situation which it is no longer a seller's market. I wouldn't even call it a buyer's market. It's more like, let's not do anyhting stupid and see what happens market. So REBNY can play the whirling dervish card all they want. What they are presenting does not represent the here and now.

Jonathan Miller has got my back on this one. Just read his latest entry where he put his foot up the ass of Time Magazine's article on the real estate bubble.

From the Matrix:

The tag line Despite dire predictions ahead, U.S. home prices continue to soar is very misleading. The price differential over the past year was largely due to the spike in prices in the first half of 2005. Prices are not soaring today.

As I have stated before.
IT IS ALL ABOUT THE NOW! Because what happens now will play a critical role of what will happen later.

One of the maddening aspects about real estate is that you never know how bad things get until they actually happen and by that point it is really too late to do anything about it.

That is why there is an army of real estate Hessians who refuse to believe we are in a downturn since in their minds there is no hard evidence supporting this trend. Although it is enjoyable to go toe to toe with this group it is a bit disconcerting to see that a Lemming mentatality has still take hold of a certain segment of the population. I am curious about how they will get themselves out of this jam once the check comes due.