Your bonus question: Will next year be better?

Before the collapse of Lehman Brothers on Sept.15, 2008 and the thousands of layoffs that had blood running in the Street, Wall Street money evidently fueled the New York housing market, especially luxury properties.

At the time, it was said that 7 percent of the city’s payrolls were linked to financial services and produced 23 percent of the employment income.

The conventional wisdom has been that the tribulations of the stock market would profoundly affect not only home prices in Manhattan but also stifle their recovery.

True, in the fourth quarter of 2008 and into the first quarter of this year, the Big Apple’s housing market was moribund and Wall Street’s woes indubitably were a root cause.

Now, however, the market is showing signs of life. 

Indeed, I’m suddenly swimming in buyers for the first time in months, and at a big event I attended Wednesday night that was sponsored by the Real Estate Board of New York (REBNY), virtually every broker I met talked about increased activity.  The brokers’ moods have shifted from somber to decidedly upbeat, for what that’s worth.

The question, then, is what will be the affect of the mind-boggling bonuses that once more are now expected on Wall Street.

Among those of who pay attention to such matters, a consensus seems to be emerging.  You can find a discussion of such views and the direction that the housing market may travel next year in the “Out and About” section of the free e-newsletter I write every two weeks.

Check out today’s Realty Digest and see, as well, a compendium of additional information on the U.S. and New York housing markets, predictions from a range of soothsayers, celebrity gossip, mortgage news and household tips.

Here’s a hint about what you’ll find in the newsletter: “All things considered, it is hard to make the argument that housing prices and sales activity will surge in any amounts like 2007.”

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Malcolm Carter

Licensed Associate Real Estate Broker

Senior Vice President

Charles Rutenberg Realty

127 E. 56th Street

New York, NY 10022

M: 347-886-0248

F: 347-438-3201

Malcolm@ServiceYouCanTrust.com

http://www.ServiceYouCanTrust.com

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