There are real estate articles beginning to circulate that New York is in for one of the biggest declines in real estate values they've seen in decades. Hold on! Before you chime in on the negativity with, "Well what were they expecting with condos selling in the millions," or "Of course with the wall street mess...," or what ever your chime in is, there may be an alternative, and even may be alternatives - plural.
Of course those alternatives are dependent on some large ifs. Fortunately for the New York real estate market many of those ifs may turn into actual solutions. The large ifs are actually more whens - and the whens are coming soon.
Here are some ideas that have basis. For one, many of the banks receiving bailout funds haven't begun to apply them yet. (I didn't say spend them, I said apply them.) When those who took funds, start circulating dollars the way they were intended to be circulated, the real estate market will respond. On top of that, there are many smaller (un-publicized) banks that do not need to take funds because they didn't participate in poor lending decisions that some of the larger ones did. When both of these begin to catch attention, the real estate market will respond.
Next, there are some procedural ideas beginning to bubble to the surface that will help people stay in their homes. These bubbles are popping up with plans, ideas, and programs that will provide employed people who are still paying bills, relief from the value declines that are affecting every owner. There are many who can make their payments but are still upside down in their values. There are others who also could make payments if they were given some principal relief or interest rate relief or both. When these bubbles start popping, watch for a market that can stabilize.
This mess was created "behind the scenes" by people connected to each other by relationship, by company, by industry, and by interest in making money. These same types of connections are going to, and are even now beginning to, clean up the mess. There is a cleaner-upper for every spill. Keep your eyes opened and watching for opportunity. It is on the verge of appearing!
Happy Selling and Listing!