NY City Lowers Expectations From Home Sales
In a NY Daily News article, some information slipped out that shows the industry insiders know the market is slowing. "The Bloomberg administration has sounded a rare note of pessimism about the residential market, by budgeting a drop in city tax revenue from residential sales and mortgages in the year starting July 1."
"The Office of Management and Budget bases its prediction in large part on a Mortgage Bankers Association forecast of a nationwide drop in mortgage refinancing and new-mortgage origination."
How could this kind of pricing continue? "Last year, high-end sellers could charge 5% more than the last comparable sale and get their price, even if the prior deal was done only a week before. This spring, they can get 1% more."