What will it take for a recovery in Hamptons (and Manhattan) real state?
Well, certainly one of the things necessary is the return to high paying Wall Street jobs. While this last years bonus payouts were a disaster, since the September 2008 Lehman Bro’s crash and the involvement of the US Government in bailing out our financial institutions, it appears that the street is figuring out a way to stop the bleeding and hold onto their “intellectuual capital” by sending out the vibe that they are putting away money for 2009 bonuses.
“Workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began, because of the strong start of the year for bank profits.”
Whether or not that is how it will end up is anyone’s guess, but these guys and gals know how to make money, and no stinkin’ government bailout program is going to stop them!
That being said, the return to 2007 income for those that are left will not, imho, necessarily mean the return to the “irrational exhuberence” of the early 00’s. These same guys and gals won’t forget the sting of low/no 2008 bonuses quickly and will use this opportunity to inflict that bargaining power on the things they want the most ie: real estate. I guess we’ll see, won’t we…