The proprietor of StruggleFour, a blog devoted to the financial meltdown, emails us the above chart, which purports to track real estate prices to equlibrium from 1992 to the current day. While supporters and debunkers debate its merits, Bloomberg News asks experts to share their thoughts on what the wipeout of Wall Street bonuses will mean to the NYC real estate market over the next few years.
A 50 percent reduction in bonuses would push down prices by about 24 percent from their peak through mid-2010, said Sam Chandan, chief economist at property research firm Real Estate Economics LLC in New York. That would mark the biggest slide since 1980 when appraiser Miller Samuel Inc. started tracking Manhattan prices... Apartment prices have dropped 15 percent in Manhattan and may fall another 11 percent to a median of about $820,000 in the next 12 months, said Chandan. If bonuses are eliminated, prices would slump by another 20 percent to 24 percent to a median of $730,000, he said.
Another glorious Friday, comrades!
· Lost Bonuses Mean Manhattan Home Prices to Drop Most Since ‘80 [Bloomberg via The Real Deal]
· Nation's Housing Nears Equilibrium [StruggleFour]