Talk about a change of pace. For many a moon, the subject matter of these monthly roundtables had more to do with wondering how high the market could climb rather than predicting how far it would fall. But then the market died and everyone started looking ahead to Bubble 2010 and all of a sudden, it's not a matter of when or if the slowdown is coming, but rather, how long the trouble will last. And who'll get hit the hardest? That's what one Curbed reader asks, and it's an interesting topic of discussion:
What is the view on potential price drops for one bedroom and studio apartments in NYC, given the economic "slow down" and deflation of the real estate bubble? Should one expect greater price cuts on the lower end of the market relative to the higher end?
Among the apartments at the lower end, it seemed that the sales cost to some extent reflected the price of entry into the market. Do you think that this price floor will drop dramatically? The potential glut of new condos would seem to contribute to this. Is the distinction between condos and co-ops at this end of the market worth making? In this sense, co-op prices may not have inflated as much over the past decade, and therefore may not drop as much.
Low-end vs. high-end and condos vs. co-ops in the Dead Market Era. All predictions, expert analysis, conspiracy theories and outright denials in the comments, svp. · Curbed's Market Analysis coverage [Curbed]For more stories from Curbed, go to curbed.com.