Who Can Afford That? asks David Lereah : The Real Estate Bloggers

Who Can Afford That? asks David Lereah

September 19th, 2006 • Related • Filed Under

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David Lereah, chief economist for the National Asssociation of Realtors,  was speaking to a Realtor group in Saratoga Springs yesterday, and announced that in his opinion the real estate downturn will last only 3–6 more months before it rights itself. He dfd have one telling line that captured how some markets bubbled. He said “Who Can Afford That?” in reference to the San Francisco marketplace that has reached heights that are stratospheric.

He also pointed out that Las Vegas, Chicago, and Miami will take a bit longer to recover as they have a huge excess inventory of condos.

He predicted a rebound in the next three to six months in most parts of the country, provided the Federal Reserve doesn’t start raising interest rates again. Some areas in the South and West will take longer to recover because the boom of the past five years was much sharper than in New York and other states, he said.
The median price for a single-family house in San Francisco, for instance, is $740,000.
“Who can afford that?” said Lereah, who addressed the bi-annual meeting of the New York State Association of Realtors. via The Business Review (Albany)

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There Are 2 Responses So Far. »

  1. Comment by Larry Nusbaum on 20 September 2006:

    Apparently people have been able to afford San Francisco, for a very long time.
    Are America’s Most Expensive Cities Overvalued?

    Big cities, bright prospects
    Big city home prices are not out of line with the rest of the country, says a study.
    NEW YORK (MONEY Magazine) - Are home values in America’s biggest cities out of whack with the rest of the country?

    Chris Mayer, a finance and economics professor who heads the Milstein Center for Real Estate at Columbia University’s business school, tackled that question by looking at price changes in 129 cities since 1940.

    He spoke with MONEY’s Cybele Weisser about his study, “Superstar Cities,” which concludes that despite the recent boom, prices in most big U.S. cities have remained in line with long-term trends.

    Read the Q & A.

  2. Comment by Larry Nusbaum on 20 September 2006:

    http://money.cnn.com/2005/09/23/real_estate/cities_real_estate_0510/

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