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March 25, 2005
That's It. We're Renting. Maybe.
Everything we've read points to a real estate market with inflated prices, propped up by low interest rates, and glutted with investors. Prices are rising higher than incomes and inflation, and buyers are overextending themselves with short-term adjustable-rate loans. It's also cheaper to rent.
Curbed and Brownstoner -- good real estate blogs -- have funny stories about crazy eager buyers and the innovative ways that brokers are taking advantage of them. At one open house, the roof caved in DURING the open house and the place still went for above asking.
Today, the entire American press corps seems to have taken up the story and "real estate bubble" is the catch-phrase. AP has an article suggesting a cooling market and a The New York Times piece likens the current real estate shenanigans to the dot com boom. Last week, The Economist recommended renting over buying last week in an article titled "To Buy or Not to Buy?" (same as my blog post title except with correct punctuation!)
There may not be an overnight panic or crash, as there was in the stock market, but things could even out a bit over the next few years. Prices could stay flat, and if we still want to buy later we'll be in a better financial position to do so.
I just spent my day cleaning up our apartment so an evil, scheming Corcoran broker can come over and case the place, calculate his commission, drool, and take pictures. I feel awful. I become very attached to places I live in, so I have a feeling that this process is going to be difficult. I keep thinking that we should just ignore all the boring details mentioned above and buy the place anyway. As D says, damned if you do, damned if you don't.
On the up side, a clean apartment and a limited lease means we'll have a party soon. But no ogling the place and no offers, please. We'll tell the broker you have bad credit and are using a stolen identity.
My brief adventure in real estate has led me to a few good blogs/sites -- some I like, some I do not -- here's a beginner's list, for interested readers.
- This person is debating a move from the city (Park Slope) to the suburbs (possibly Montclair, NJ?) and has asked for feedback. TONS of people have posted useful comments about the pros and cons of each.
- Brownstoner -- documents an ongoing restoration of a brownstone and has regular NYC real estate related posts
- Curbed -- the most entertaining of the RE blogs. Great info, good gossip, too.
- The NYT real estate page (no brainer) -- where to go first.
- Corcoran -- evil bloodsucking brokerage with good website design and information about sales over the past few years. Probably all lies, lies, lies, as D would say. Lots of pictures, floor plans, etc. Obscene prices. Sales geniuses. Browse with caution.
- Aguayo & Huebner -- bkyln broker, good finds.
- Mary Kay Gallagher -- queen of Ditmas Park real estate
(graphic above by Rick LaForce via Inman Blog via Curbed)
Posted by csageday at March 25, 2005 06:01 PM