Skip navigation


Current DateTime: 09:08:51 21 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.

  • The Richest Members of the US Congress

      Recently, the Center for Responsive Politics found that there are 237 millionaires in the US Congress.

  • 10 Tips to Get Out of Debt

      Renowned financial author Gail Vaz-Oxlade takes a tough-love approach to helping couples in a financial crisis to face reality.

FEATURED QUIZZES


Current DateTime: 09:08:51 21 Nov 2009
LinksList Documentid: 33793611
  • How Much Do You Know About Green?

      Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 09:08:51 21 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
NYC Property Values in For Big Hit: Research Firm
By: Natalie Erlich,, Writer/Producer | 02 Oct 2008 | 03:36 PM ET
Text Size

Real estate markets in Los Angeles, Miami and Las Vegas have hit bottom, but Wall Street's home may be in for a big tumble, says the head of a real estate research firm.

Over the next 12 to 18 months, New York City property values are likely to decline by 20-25 percent, Bill Staniford, CEO of PropertyShark.com, told CNBC. "Transactions in New York City right now are pretty much non-existent; what that means to me is that prices need to come down," he said.

New York City Skyline
While foreign investment has helped sustain New York City real estate—particularly in Manhattan—growing economic stresses abroad and Wall Street layoffs will soften the market, Staniford said.

"We're starting to see foreign investment dry up, and there are big problems with the financial industry—not just the high-net people but the secretaries [and others] that support that industry," he said.

In fact, New York City had the highest increase (16 percent) in foreclosures from the last quarter, among four key metro areas (Los Angeles, Miami and Seattle), according to PropertyShark’s third-quarter foreclosure report. However, Manhattan foreclosure auctions remain virtually nonexistent.

_____________________________________
Calculators and Advice from Bankrate.com:

_____________________________________

“I still don't think that we're going to see a lot of foreclosures in Manhattan, and the reason is people tend to work out those problems before foreclosure,” he said. “When someone goes into default into Manhattan there are a lot of investors that are looking at that property.”

Despite Manhattan’s resiliency, foreclosures in all four regions hit two-year highs in the third-quarter, with Seattle up 100 percent, New York City up 60 percent, Miami up 58 percent, and Los Angeles up 196 percent.

“There was a lot of speculation in that area [Los Angeles]; there were a lot of individuals of low socioeconomic status that were more susceptible to the subprime [crisis],” said Staniford. “It was almost the perfect storm out there.”

More From CNBC.com

Currently, some areas in Los Angeles have seen property values fall more than 50 percent from their peaks, making it an optimal time to buy, Staniford said.

Although the Los Angeles market is starting to pick up, recovery for the broader U.S. real estate market could take five years, he said.

“There's potentially going to be a lot of restricting on lending,” said Staniford. “It's going to take a whole lot of people that were potential buyers out of the mix. Supply and demand is going to dictate that this is not going to be a fast recovery.”

He also cautioned that if the government would not step in, foreclosures would accelerate.

"Foreclosures picked up last quarter," Staniford said, "because the economy is in the toilet."

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Technology can make or break a fortune in the world of alternative energy.
  • Many people are facing the holidays with substantially smaller incomes. Here’s how some are adapting.
  • Jim Cramer
  • Jim Cramer is a proponent of stocks that pay healthy dividends, and here are his top five dividend plays.
  • From salt, to lip balm to envelopes, it turns out that bacon flavoring can sell almost anything.
  • real estate signs
  • The homebuyer's tax credit jacked sales for a while, but 2010 is looking weak. Now what?
  • CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
ADD COMMENTS
Remaining characters


Current DateTime: 06:39:37 21 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:03:48 21 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:05:48 21 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:48 21 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters