More Mortgage Drama

Oct 31, 2007

The Grinch Who Hurt Real Estate?

No, we are not talking about the $160 million golden parachute for Stan O'Neal, the former of CEO of Merill Lynch. All these banks betting on bad mortgages have sent the housing markets in most parts of the U.S. (not New York) into a tailspin despite healthy economic growth rates. Indeed, the U.S. economy grew by a robust 3.9% in the third quarter.

The bad news for the Manhattan Real Estate Market is the increased difficulty for potential homebuyers seeking either 90% financing, non-interest-only loans, and non-income verification mortgages. Less financing opportunities equals less buying power. New condo construction looks particularly vulnerable at the present time.

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