Ana Maria Sencovici · Wealth & Investing Expert

I couldn’t help but be hypnotized by the almost 1,000 point market drop, and whiplashed by its subsequent jump within 15 minutes. The Greek situation is now believed to be far more than a liquidity crisis but rather an issue of solvency, and one that is not likely to be contained regardless of any short-term band-aid solutions. The foundation of this crisis is the sovereign debt explosion in industrial countries (i.e. bloated public finance landscape marked by governments spending beyond their means), and its implications are yet to be determined.

There are many factors at play in deter…

You’ve probably heard the words “Case-Shiller” mentioned hundreds of times by now … it’s not surprising. The Case-Shiller Index (CSI) is now touted as one of the most respected and reliable means of tracking the health of the housing market. Headlines are littered with references to this magical index, so we thought we would take a peek at how relevant the CSI is as it relates to New York City.

The purpose of the index is to solve for the basic dilemma faced in tracking home values over time: _the particular mix of properties sold at any point in time can create the illusion of a c…

It’s all too easy for sellers to get a false sense of confidence from early offers and ignore them, waiting for higher bids in the months to come … or just get spooked altogether. We often have conversations with sellers about the critical first 3-4 weeks that a property is listed on the market, and why it is so important to treat buyer interest and offers with respect during this time.

Let’s dig into this dynamic and break down why this happens: what makes those first few weeks so magical? We’ll use round numbers to communicate the point.

1. Let’s assume that at any point in time,…

As March approaches, many are hawkishly watching interest rates to see their reaction to the Fed ceasing its purchases of $1.25 trillion in mortgage-backed securities. Most believe it inevitable that rates have nowhere to go but up … it’s just a matter of when and the degree of influence that this Fed move will have on the timing. Interest rates are considered a key pillar regarding the health of housing markets. Estimates of rate increases currently range from a .25% to .75% increase in mortgage rates.

We must note that stopping purchases is altogether different than re-selling them on…

T’was the night before New Year’s, when for seconds so brief
All in the world of real estate breathed a sigh of relief.

Events that unfolded in 2009
Could have been so much worse for Manhattan’s skyline.

Thinking back to last year, markets frozen as ice,
It seemed sellers and buyers were way off on price.
Rents kept on falling with concessions galore,
Leaving landlords and tenants trying to define a floor.
The sub-prime debacle that first started this mess
Was replaced by prime loans and their default duress.

Spring then burst on the scene, bringing much needed cheer
That at l…

Just because you have a meeting of the minds at the price you want doesn’t mean that your buyer will be approved for it. This is especially true in the conforming loan space (Your property may therefore be appraised at a price that’s lower than what the buyer’s willing to pay. In turn, the lender can only lend at a particular loan-to-value based on that appraisal, leaving the buyer in a position to either put down more cash up-front or walk away altogether.

Have a plan B in place, and know that negotiations may not be over with a signed contract.

Will NYC experience a second significant slide of home prices? Heading into the end of 2009, here are the arguments for and against a double dip in NYC home prices, with some words of conclusion to wrap it all up.

The argument for a double dip:

Dire predictions: Fieserv (a financial analysis firm) is predicting that NYC metro area home prices will underperform the rest of the nation over 2010 and 2011, price tags dropping another 11.3% by mid ’10 and an additional 6.1% by mid ’11 (for a total of 17.4% before hitting a bottom).

Unemployment: Fueling this argument is the city’s h…

We were lucky enough to hear Robert Shiller speak at the Distressed Real Estate Summit a few weeks back. We found most of what he said to be interesting, as we hope you will, too.

He began with speaking about the misquoted relationship between the economy and housing prices, noting that, in fact, the relationship is one between the economy and housing construction. He believes that this housing bubble is unprecedented in the US, and likely puts us in a difficult economic position for years to come. The current anomalies in the market are making it such that he doesn’t quite know how to…