This week's New York Magazine's cover asks The $1,333,316 Question: How Long Before Our Real Estate Bubble Pops? What's with the price tag, you say? Well, that's the average sale price of all co-ops and condos and Manhattan, so you'll forgive us for choking on our leftovers, but for those with PiggyBankBlues that's a little too Lifestyles of the Rich and Famous. The article goes on to break down the risk factor expensive neighborhood by expensive neighborhood (it is real estate obsessed New York Magazine, after all). Williamsburgh prices are down by almost 10 percent, Bed-Stuy/Bushwick has 225 properties on the auction block, while Park Slope has zero.
- "But brownstone Brooklyn’s real hedge comes from its mix. Park Slope and its ilk are home to a highly mixed demographic, with bankers next to teachers next to Safran Foers, notes Corcoran’s Deborah Rieders. That lends stability if, say, financial-industry bonuses go south next year. The locals are also stable in another way: Though plenty of residents cashed out during the recent run-up, many more have been here a while, which means not everyone bought at the top. In other Brooklyn hot spots, Gallant says, quite a few recent buyers could soon “wake up and say, What was I thinking?” (The wild card, of course, is Atlantic Yards. If 6,000 apartments are slammed into the neighborhood in a few years, they’ll play havoc with both the area’s makeup and its supply-and-demand equations.) The danger zones are likely to be areas that have glommed onto the cachet of these old reliables, where asking prices may be overreaching: the bottom edge of the Slope, say, or the fringe where Carroll Gardens fades into Red Hook."
* photo of David Blaine at the Lincoln Center by Knut Vidar Siem