By Oshrat Carmiel
May 19 (Bloomberg)“This isn’t like your typical Nor’easter where a tree falls and your lights flicker,” said Michael Daly, founder of the buyers’ brokerage True North Realty Associates in North Haven, New York, and a Hamptons real estate blogger. “This is more like a Katrina,” he said, alluding to the historic 2005 Category 5 Hurricane. “It’s going to be a number of years before the market recovers.
3 comments
May 20, 2009 at 5:09 pm
Richard Stabile Bergen County Real Estate
The resort markets such as the Hamptons are worst hit because they are in most cases not necessities, well maybe to some. They have in the frenzy, run up and now have gotten hit hard. Most markets are trying to improve. The Hamptons will struggle. People feel they must curl inward, social mood, fear of income instability and the lack of jumbo mortgages. The new buyers will pick around and look for great deals. The premium properties will do ok. Many people want a lower profile; they have an excuse to conserve. The area will find support at the 2002 price lows.
May 22, 2009 at 9:12 pm
Jai Tsong
I do not agree that 2002 lows will offer support. Rather, I see 2002 as a false bottom and those buying at 2002 prices as catchers of falling knives. They may have temporary solace, but when the 2002 prices collapse, their hands will be sliced into slivers. It is going to get shockingly ugly in the Hamptons due to a number of factors:
– Wall Street job losses
– Wall Street bonus cuts
– Toys get ditched first
– Higher taxes for the wealthy on the way
– Fashion – the Hamptons are fashion and eventually fashion changes, particularly when catalyzed by economic pressures
May 25, 2009 at 2:34 pm
Michael Daly
Jai-
I suppose your comments define the three positions that exist today; bear, moderate and bull. Your comments are bear-ish, believing that there is more pain to come. I have what I condiser to be a moderate view and believe that we are at or close to a “bottom”, which we might be scraping along for several years, but that we will not see signigficant worsening of values. Then, not yet represented in this thread is the bulls, which believe that prices and sales will resume to 2006-7 levels in the near future. Any bulls want to chime in?