For the first time in my life, I was mistaken

Seriously, folks, I uncharacteristically overreacted in my post last Friday about Wall Street’s breathtaking plunge the previous day.  Is my face red.

Although I was correct in predicting that the market would close lower on Friday, I was rash in expecting that the events of Thursday would kill the Big Apple’s housing recovery until fall.

I make this acknowledgment after surveying several lawyers, lenders and brokers, despite some notable short-term effects.

For example, lawyer Jesse Gordon told me about one owner who was debating whether to sell or rent a $5.5 million apartment.  After Thursday, Jesse said, he decided to rent.  Another lawyer had a similar experience as recounted in my reply to a sage commenter.

Still, as Noah Rosenblatt, a blogger/broker, former trader and a friend said:

I’m not sure the crazy behavior in markets have been sustainable enough to warrant any major disruption across the buyer pool, yet. The key is yet. Stocks always fall faster than they rise, so its more dramatic.

But if we gradually improve from here, the events will have been nothing. However, if this sustains itself for, say, a few months and another 5-7% or so on downside taking us under 10,000 on Dow, then yes, I think many buyers will pause and/or submit less aggressive bids.

It’s just too soon to tell.

Based on the 347-point rise in the DJI as I write this post, everyone’s calmer view of the the stock market’s gyrations last week makes much more sense than my knee-jerk reaction at the time. I think watching the crash occur in a matter of seconds caused me to lose my balance.

I don’t know about you, but I couldn’t be happier than to have been wrong.

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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
Web site

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