As we have discussed here before New York (and the Hamptons) tend to lag in a recession and lead in a recovery. While the markets that fell big-time in 2006,07 & 08 are now starting to show an increase in number of sales, that’s because values have dropped more than 50%, in some cases more. So, the Billion$ question for New York – and the Hamptons – remains: How long and how deep will this downturn last?
Jonathan J. Miller, an appraiser who prepares quarterly reports on Manhattan, said the market could continue to fall through this year and next, especially if credit remained tight for most buyers. After that, he said, it could take several more years to work through the excess inventory.
“For the last three years, it was the bigger the better,” said Dolly Lenz, a broker at Prudential Douglas Elliman. “Now the key words are smaller, livable and affordable. Before no one asked what the maintenance was. Now everyone wants to know.”
see the whole piece below
Published: April 8, 2009