tom-beaty.com views on real estate

In recent months, fallout from the sub-prime mortgage scandal has been estimated in the hundreds of billions, up from figures of $100 billion maximum from the Federal Reserve only three months ago. While the Fed has, in an unprecedented move, cut interest rates three consecutive times in as many months, their cuts have always given investors the impression that a later cut was inevitable, cycling in a self-fulfilling prophesy that has played out poorly for the American economy as investment and stocks have been relatively cool. This behavior reflects a prevalent attitude that the situation will get worse before it gets better, and that uncertainty is the single biggest enemy of economic growth.

An interesting point of comparison for the Fed’s actions in recent months is to use other central banks, such as the European Central Bank (ECB) and the Bank of England (BoE). These banks have taken a somewhat different tact against the sub-prime problems. As early as August, the ECB and BoE decided to tighten lending standards and require that potential borrowers be have informed consent, so as to avoid a repeat problem of this magnitude. The Fed had to be threatened with losing their ability to set policy in a similar fashion for them to take action. When they did, their rules did not apply retroactively in any respect to the predatory loaning, but it did at least set some precedent for responsibility in the mortgage market.

These actions beg the question: Why is the Fed so darn sluggish? At nearly every turn, the US central bank has taken too little action far too late. All of their rate cuts have been anticipated like thunder after the lightning starts a massive forest fire. Their one response that wasn’t completely acknowledged beforehand was the joint decision by the major banks to inject billions into the financial system overnight, which only worked because it was such a concerted effort. These circumstances bely an important aspect of the Fed’s ability to help guide the economy: Sometimes a surprise is in order. The only reason for the Fed’s reticence against a large, definitive rate cut is because of the ever-present threat of inflation.

Yet as oil reaches the $100- a- barrel mark and food and commodity demand consistently outstrips supply, it seems their ability to exercise control over inflation seems a bit dubious. Granted, this scenario is without precedent, but so would be a 1% Fed cut in a single day. The difference is that a cut of that size would send a message that the economy is in real danger, but that the Federal Reserve is capable of taking that threat seriously and in a timely fashion- something that they have obviously failed to do in recent months.

Their single remaining hope is that the sub-prime crisis will not be felt as heavily outside of the money markets it has already impacted, but as credit card companies and other financial institutions that have no primary connection to the crisis have begun complaining that, if people can’t pay their mortages, they probably won’t be able to pay their mounting credit card bills, the Fed’s options seem increasingly limited. If nothing else, hopefully recent events will stimulate quicker action on the part of Bernanke and associates.

Ki runs a website covering the Austin real estate market. If you want to start your search on the web they provide a href="http://www.escapesomewhere.com/realestate_searchthemls.html">Austin mls search on their site. They also have a blog with information and news on href="http://www.escapesomewhere.com/austinblog/">Austin real estate.

Making financial decisions is part of life. So is dealing with the consequences of those decisions, whether positive or negative. Let’s talk about the decision to buy a home, and what the positive or negative consequences of that might be.

Home ownership is one of the symbols of adulthood and independence we all strive for. Ironically, a home usually represents and is the epitome of our lack of independence. Why? Because it’s not our house at all.

It belongs to the bank until we pay it off. Most conventional loans have a term of 30 years, but most people won’t pay their home off that quickly, as crazy as that sounds.

I read a statistic that the lifespan of the average mortgage is seven years. That means that most people are either refinancing their home or selling their home every seven years. This cycle makes it pretty unlikely that people will ever actually own their home.

Some people view that as a good thing, others as the worst fact of American personal finance. Those that love mortgages have their reasons, and so do those that hate them.

People who are in favor of never paying off a home usually cite one big reason - taxes. 100% of mortgage interest is tax deductible, so proponents of this philosophy say not only should you never pay off your home, you should make it an interest only loan so your tax benefits are maximized. This is a worst-case scenario for mortgage haters.

Proponents of paying off your home as quickly as possible will say that the tax advantages never outweigh the financial and emotional stress associated with paying a mortgage every month for the rest of your life. They talk about how leveraging your home can work in theory, but how most people don’t have the discipline or the foresight to actually pull it off. 90% of people out there who never pay their house off on purpose will end up with neither their home paid off, nor their retirement set.

In other words, thirty years from now they won’t be any better off financially thanks to their home leveraging strategy. The truth is they’ll be a lot worse off because they’ll still have debt, and their income won’t be secure, and worst of all they will have lost their most valuable asset - time.

So why are so many people fooled into the ‘leverage your home to wealth’ plan? It’s simple - the plan justifies them in their current over-spending, instant gratification lifestyle.

Telling people to leverage their home to wealth is (in most cases) the financial equivalent of going to a fat person and telling them that ice cream sandwiches are the solution to their weight problem. Ridiculous? Absolutely.

Personal finance is behavioral much more than it’s mathematical. Each of us needs to develop the discipline and knowledge possessed by those that are actually wealthy. The most important attribute of the wealthy people I’ve talked to point to persistence and willingness to delay gratification as two keys to their success.

Save for a down payment. Buy a smaller house now with the goal of someday setting yourself up to live in the home of your dreams. You’ll be glad you paid the price and waited.

Jeremy teaches people how to evaluate Reese trailer hitches along with other brands and also advises them on the right way to set up hitch mount bike racks.

There is one thing that every home seller absolutely needs. It doesn’t matter how much you are selling your home for, it doesn’t matter how old or new your home is, and it doesn’t even matter if you are selling your home yourself or using a real estate agent. Home sellers need to have an attractive online presentation of their home.

Sellers need to put themselves in their buyer’s shoes. When you go online to look at homes, which ones do you spend the most time with? Chances are, if you see one that has maybe three or four pictures of questionable quality, you’ll move along to the next one because it didn’t catch your eye. The pictures didn’t do their job, which is to attract you and keep you interested.

Now which homes do you spend the most time with? I’ll bet that you spend a few minutes or more with the ones that have nice virtual tours, good quality pictures, lots of pictures of the entire house, and a nice presentation. It’s just our nature. We are attracted to visually stimulating things, and it’s no different with homes.

I say all this because there are companies out there that offer high quality, professional home marketing the the online audience. One such company is Obeo.

Obeo utilizes some great interactive features when they display a home online. For example, let’s say you pull up a picture of a kitchen in a home that you like. You like the kitchen, but you’d like the countertops a different color. With a click of the mouse, you can change the countertop color. Or maybe you’d like to see what it would look like with hardwood instead of tile. You can do that too.

You can use this feature in other rooms of the house as well.

Or say you are trying to imagine how your furniture would fit inside a new house that you’re viewing online. Obeo lets you drag and drop furniture into the floorplan of the home. You can know exactly how you will set up your stuff before you even move in.

In addition to all this, Obeo just makes it look good. Their photos are high quality, and their tours really engage the buyer. And again, if you are the buyer, you want to be engaged or you will lose interest plain and simple.

So when you are talking to your agent about how they will market your home, make sure they know that you expect an unparalleled online presence for your home. It could make or break whether a buyer will come look at your home or not, and you need every advantage that you can get.

Nathan Blair is a real estate professional in Salt Lake City, Utah, specializing in residential home sales. He enjoys helping people who are relocating to Utah, or who are moving from inside the state. Nathan would be happy to help you or anyone you know buy or sell a home in Utah.
You can visit his Salt Lake City Utah Real Estate Blog and hisUtah real estate website for more information.

The thought never entered your mind! You bought your home with the best of intentions. Perhaps the lender assured you that you could “just refinance” when those heart-stopping payment increases began.

Perhaps no one even explained to you what could happen? But here you are! With house payments that you can’t possibly pay…in an area with a depressed real estate market. You owe more on the house than it is now worth. Your chances of selling the home to break even are slim to none. You could be in for a rough ride! What can you do?

The first thing to consider is why you are in this situation. What circumstances are preventing you from making your house payments?

Foreclosure may possibly be avoided!

* Is this a temporary situation?

* Have you been laid-off or lost your job?

* Has an illness put you behind?

* Has your interest rate increased too much?

The answers to these questions will make a difference in your approach to this problem. Let’s start with the easy ones. If an illness or job lay-off has put you behind in making payments, the most important thing you can do is communicate with your lender.

Many times, the lender will work with you. They have a lot of foreclosures on their books right now…and they don’t want another one. If you have had a history of making your payments on time, the lender will most likely help you.

They can sometimes add your late payments on the back end of your mortgage…and bring you current on your payments. This is by far a better solution than foreclosure.

What if there is no other answer but foreclosure? What options are available to you?

Always try to sell the home before it gets to foreclosure. If you live in an area with high visibility, try to sell the home without involving an agent. This will save quite a bit of money that might make the difference in whether or not you can break even.

If selling the home is not possible…perhaps you owe too much or have already added a 2nd mortgage to your list of problems, it’s time to consider more drastic measures. A short sale might be your answer. A short sale occurs when property is sold for less than the amount of money owed.

Sometimes the lender will decide that their interests are best served by accepting less than what is owed in mortgages on a property. Typically, the lender will want a Realtor involved in a short sale because of the amount of work and legalities involved.

You might contact your Realtor to discuss these options because you will have to have an offer in place to begin this process. The short sale will still result in damage to your credit rating, but it’s not quite as bad as a foreclosure.

The foreclosure process will depend on the state in which you live. Some states have judicial foreclosure, which is a court-ordered action. The lender obtains the right to foreclosure by filing and winning a lawsuit.

Most states are non-judicial states. This type of foreclosure typically takes less time to complete than judicial foreclosures. This is because the borrower pre-authorizes the sale of the home in the loan documents.

The timeline for non-judicial foreclosure is usually 3-5 months. The motion will be filed with the court after 90 days of non-payment. At this point, there must be notices placed in newspapers and at the court house…usually 21-25 days.

After this period has passed, the property is sold in a trustee sale or becomes inventory for the lender. Are you aware that you will most likely receive an IRS 1099 for the difference in the short sale and what you actually owe? This is considered income for you and can result in a large tax bill for you at the end of the year.

Sometimes, the lender will accept a “deed-in-lieu of foreclosure”. The property still goes back to the lender…but saves the expense of foreclosure. The damage will still be on your credit report. But again, anything is better than full-blown foreclosure.

If bankruptcy is involved, it may forestall the foreclosure by a few months. If you are filing for bankruptcy, please consult your attorney about this issue. It is always wise to keep the communication lines open with your lender.

Explore all your options…because the lender wants to avoid foreclosure as much as you. Work with them!

We always enjoy hearing from you, so please contact us with any questions.

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer’s Agent. There is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time.

For more information, visit her comprehensive website, www.NashvilleRealEstateAuthority.com

Because of news reports about instability in the current housing market, many prospective buyers are hesitant to buy a home. Many would-be homeowners start looking to rent a house or apartment instead. But when you compare the cost of renting a home in many markets across the nation, renting instead of buying is doing little more than make your landlord rich.

The price of rent has skyrocketed in many parts of the United States in recent years. The highest rental markets are usually around the major cities. Topping the list is New York City, where the average yearly rate is over $27 dollars per square foot. This translates to roughly $2,500 monthly. The price to rent in Manhattan is even higher, with the yearly average being over $48 per square foot. If you need three bedrooms or more, the rent is easily over $5,000 monthly.

While other major metropolitan areas are less expensive than New York, they are by no means cheap. Boston, Chicago, and Miami are all expensive when it comes to rental properties. Boston averages just over $25 yearly per square foot, while Chicago will cost $14 yearly.

Nowhere in the nation is the problem of high rent more widespread than in California. The rental prices in San Francisco are astronomical. The price per square foot is just over $27 yearly, only cents less than the average New York apartment. Los Angeles is nearly as bad at $25 yearly per square foot. Orange County, San Jose, and San Diego are also on the list of ridiculously high rent areas in California today.

In the Hollywood Hills, $10,000 a month will rent you a very basic house. For something nicer, expect to shell out $30,000 a month or more. That’s the price of renting in paradise, among the rich and famous. Shockingly, $10,000 a month can purchase a $1.5 million home. That’s nearly a million dollars more than the average home price in San Diego, not to mention the rest of Southern California. So why did rent pricing climb so high?

Rental prices often shoot up for a number of reasons. Sometimes there’s a lack of new rental property being built, while other times rental properties are being converted. Today’s market is witnessing record numbers of defaulted mortgage loans. Many people bought homes with adjustable rate mortgages a few years ago, and now that they payments are getting higher, they simply can’t afford the giant mortgage payments.

But don’t let this fact discourage you from buying a home! Because of the record numbers of foreclosures, homes are available at much more affordable prices today. Simply look into a fixed rate mortgage that fits your budget comfortably, and take a look at the wonderful homes that now fit in your budget. You’ll be surprised how much more home you can afford today than you ever could before.

Your money will go farther, and you won’t have to pad your landlord’s pockets any longer. Instead, you can build equity for yourself. Over time, your property will almost always increase in value. With a rental, you are just throwing your money away. Strongly consider buying a home instead of renting if you don’t intend on moving out of the area in the near future. You’ll be glad to have the equity in the long run.

Kari Shea is a real estate professional with Shea Real Estate & Investment Groupwww.shea-realestate.com.

San Diego didn’t get the nickname of “America’s Finest City” for nothing. It is one of the most beautiful places in the country. With its beautiful and luxurious homes, great location near the beach and the availability of world-class goods and services, It is a great place to buy a new home.

Location, Location, Location

Sure, real estate agents toss that phrase around quite a bit. But when it comes to San Diego, it can’t be said enough. The city is bordered by California’s famous Orange County on the north, the Pacific Ocean on the west, Mexico on the south and mountainous desert terrain on the eastern side of the city. The climate is gorgeous, the beach is at your feet and all the convenience and luxury of a major city surround you. Whether you love fine dining, gorgeous shops or outdoor activities like golf or surfing, this city has it all.

The Perfect Place to Call Home

San Diego is the playground and full-time residence of some of the most affluent people in the country. It is the second largest city in California and the eighth largest city in the nation with over 4 million people in the greater metropolitan area, but it amazingly maintains the feeling of an intimate hometown. San Diego is a great place to retire, with some of the finest medical care in the country. It is also a great place to raise a family, due to its low crime rates and outstanding school systems.

Amazing Jobs Await

Imagine cruising down the I-5 on your way home from work with the ocean at your side and the top down on your beautiful new Mercedes convertible at sunset. With the amazing job opportunities San Diego has to offer, that dream can soon be a reality. Money Magazine frequently lists this city in its list of the top ten places to live and work in the United States. Companies like Wells Fargo, The University of Southern California, Chevron and Hewlett-Packard all call it home. It is also a great place to be an entrepreneur, since the people here love to shop, dine out and access the finest services available.

The People and Places of San Diego

It is a great place to buy a new home. If you are just looking to invest in real estate, you will find the city’s stable foundation in quality living makes its properties a great choice. The people in San Diego are as varied and vibrant as its many different neighborhoods, and they can’t wait to welcome you with open arms. Whether you visit Little Italy or Mission Beach, you’re sure to be greeted by friendly faces and beautiful places. If you are looking for a great new place to live, you owe it to yourself to take a look at America’s Finest City.

Kari Shea is a real estate professional with Shea Real Estate & Investment Groupwww.shea-realestate.com.

Wondering or confused what to gift your near or dear ones which will make them feel very special, surprised and exited. Want to have a title of your own. Here is the solution. After all everyone wants to be special and be in the limelight, aren’t they.

The best way to make them happy is by giving one of the rarest gifts in the world, making him or her Laird or Lady of Jura. You can now have a unique title by having an estate of your own.

Here is the chance to have a title of your own. Having your own title would really mean so much. But, it is not just having the title of Laird but possessing your personal Scottish estate would signify so much. All of them knowing that you own a property in Scotland would start envying you and would wish to have one of their own. Investing on land in Scotland has come up as the “Next Big Thing” because of great returns.

Would you not prefer to have a land of your own in an exotic location. That is exactly what you will find if you own a Scottish estate on the isle of Jura. It would be a great feeling to own such a property which is surrounded by fantastic views. Get ready to get spell-bound by the scenes around your plot. Imagine standing on your own plot from your own personal Scottish land overlooking the sound of Jura which has beautiful views all round. You can now acquire the land on the isle of Jura in a hassle-free manner.

After all who would not want to know about it. You must be thinking to have a Scottish estate of your own; you need to spend hundred of thousand pounds. But, you can still own part of this magical island which is surrounded by breath-taking scenery with only a small investment and still have the opportunity of becoming a genuine Laird or Lady.

Want to know more about the Scottish estate you own. Definitely you would want to know about it, is it not. The history and location of the estate is definitely to captivate and impress you. With the wee bit of Historic Scottish highlands, you will be delighted as it can be yours forever.

So, what are you waiting for. Hurry. Seize the brilliant opportunity right away and have a title of your own by becoming a Laird or Lady.

Ranju is an assistant to Ron Thomson has been running the website Become-A-Lord for over four years making ordinary folks into genuine Lords and Ladies under Scots law and long established tradition going back centuries.

A mortgage is the largest expense that homeowners will have to pay in their lifetime. Homeowners, particularly first-time homeowners, can easily become confused with the terms and conditions of understanding a mortgage. But because this is a loan that will follow you for fifteen to thirty years, it is essential to fully understand the loan agreement and mortgage basics before signing your name to anything.

The three most important terms that you need to become familiar with before entering into any mortgage are: term, rates, and cost. The term of the mortgage refers to the amount of time that the homeowners will have to fully pay off the loan. This is generally between ten and thirty years. The longer the term is, the lower the monthly payments will be. However, if you choose a shorter term, the interest rates will generally be lower.

The rate refers to the interest rate. This is basically the amount of money the lender will charge for providing you with the loan. Rates will vary depending on the homeowner’s credit history, how much of a down payment is made, how much income the homeowner makes, and the price of the home that is to be bought. Costs generally refer to the closing costs, which are incorporated into every mortgage. These include appraisals, administrative fees, and attorney fees. Some mortgage packages include a “no costs” offer but the rest of the mortgage package needs to be carefully reviewed before determining if this is actually saving the homeowner money.

When it comes to financing a home, you want the best deal available to you. The good news is that there are many different options available for homebuyers from local lending companies and banks to a mortgage broker that can be found online. A mortgage broker should be working in the best interest of their client in terms of rates, monthly payments, and the life of the loan. It is important to speak to the mortgage companies first as then you can truly know what you can afford and you will be able to compare companies beforehand to determine if you will have a good relationship with them before entering into any long-term agreements.

Adjustable rate mortgages may seem like the perfect solution for some and a huge risk for others. This is because with adjustable rate mortgages, the monthly payment of the mortgage is determined by the interest rates for that month. While it makes for a varying monthly payment, these can be a great fit for first-time homeowners or for those that are only looking to live in their home for a short time and then sell. When the mortgage is at an adjustable rate, it is important to continuously review the interest rates so that you can switch into a fixed rate mortgage by refinancing your home. This will save money for the long-term.

Paying off a mortgage early can be a great feeling and there are a few simple steps to do it. The first is to pay a little bit extra on the principle of the loan every month. As little as twenty extra dollars a month can add up in a hurry and will considerably shorten the term of the loan. The second step that can be taken is to make an extra payment in full once a year. This will also lessen the loan’s term by a few years. The third is to put any extra money available back into the home. This is either by giving it to the lender to pay on the principle or by making home improvements. The biggest areas that are looked at by buyers are the kitchen and the bathroom so to boost your home’s resale value, start with these homes first.

If you are interested in prepaying your loan, you need to carefully review your mortgage agreement. Many companies will have a fee for prepaying a loan and it is usually a predetermined amount, or a percentage on the amount of loan that has yet to be paid. These prepayment fees are most commonly found in high-interest and high-risk loans.

An interest only mortgage provides a homeowner with the opportunity to only pay the interest of the home for the first few years of repaying the loan. This makes the payments significantly smaller and the principal that is not being paid will be distributed throughout the rest of the loan. When first looking at homes to buy, be sure to calculate exactly what you can afford by determining an amount that includes both interest and the principle so you are not in a bad position when the interest only period ends. When taking out one of these loans, it is important to have the loan agreement stipulate when the principal will be paid and to also pay for as much of the principal when you are able to.

Many people need to obtain a mortgage quickly, because of a short closing period or for other reasons. One of the quickest ways to obtain a mortgage is to shop around online. Online mortgage companies have calculators set up so you can determine yourself what kind of loan and payments they can offer you. They also have automatic credit checks, applications for the loan, and income verification that will speed the process along that much more quickly.

Paige Martin is award winning Houston realtor. Her website features 500+ pages of data and lists all Houston Condoss for sale. Paige is a member of the Houston, Texas, and National Assoc of Realtors. Paige Martin, Martha Turner Properties.

The Herault is a spectacular Department in the Languedoc Region of France. It gets it’s name from the beautiful River Herault, which meanders through it.

The French, when it comes to where they would most like to live, permanent or retirement, opt for the Herault, it’s their favorite location in all of France! Many buy homes in the area and house prices are rising steadly. Lots of foreigners have also discovered this and bought vacation or permanent homes in this tranquil area, where the main concern of the day can often be “what will I do today?” The pace is slower, the food healthier, life expectancy is longer, the worries are less…yes it’s tough.

Real estate prices are still pretty reasonable, in the Languedoc region, making it a good time to buy. You can choose from a chalet, apartment, village/town house, or luxury villa with swimming pool. Prices vary, depending on how close to the sea or a particular town or village. Each village or town has Estate Agent’s Offices (Immobiliers) with plenty of photos in their windows, call in and have a chat, more than likely they’ll show you properties that same day.

When buying real estate in France you can save paying the agents fee’s. Just travel around and find properties being sold privately by their owners. In most cases you will see a hand written sign saying “A Vendre”. If you have the time, travel from town to village looking for your potential dream home, if possible staying overnight, meeting the locals and experiencing the place.

It’s easy to understand why the Herault is so popular. Montpellier is the major city in this department, with it’s international airport and first class train service, this beautiful historical and modern city, offers an abundance of places to see and things to do, it’s a great base and starting point to commence your exploration of the area, be it by car or rail.

The major towns and villages of Beziers, Marseillan, Sete, Agde, Meze, Pezenas and lots more, each with their own unique style and character are all within an hours journey by rail or car.

You can experience the breath taking landscape of small villages nestled and embraced by dramatic mountains and vineyards. Take a stroll along the many rivers and canals, relax on the banks of the Canal du Midi watching the colorful barges quietly float by. Let the day drift along, picnicking on the shores of serene lakes.

The Herault Department is well known for its miles and miles of clean, sandy, sun drenched Mediterranean beaches. With over 300 days of sunshine per year it’s a magnet for holiday makers, especially the French themselves, (need I say more?)

Every village and town in the Herault has at least one market a week, selling breads, cheeses, meats, fish and vegetables along with clothes, bric a brac and the kitchen sink. They are lively and colorful events with plenty of bargains. No matter how small the village or town you’re in, you’ll find copious amounts of shopping malls, nearby or a short distance away.

For the young and not so young, there’s plenty of things to keep you occupied. Theme and safari parks, water sports, cycling/walking trails, museums, galleries, golf, tours, bullfighting and the best cuisine and wines in the world. Visit some super ancient castles, forts and chateaux, marvel at the original roman viaducts bridges and towers, still in a state of great preservation. Walking around the villages your sense of smell will be charged by the local cuisine…bon appetite.

The Herault in the South of France is certainly well worth a visit and is definitely a great place to buy a home!

John Keating is an International Real Estate and Travel writer. He is also a consultant with leading Real Estate and Travel Websites. Find out more about France, and the the top worldwide places to live in, or travel to, visit: http://www.propertysearchnow.com

There hasn’t been a year like 2007 for Manhattan real estate in a long time. And there probably won’t be one like it for just as long. It saw a confluence of conflicting trends and market events that were enough to make the most brilliant economists’ heads swoon. While the national housing market had literally its most devastating year since the Great Depression, New York homes shot up in value to levels that set new records in all sorts of categories.

A new year end report Corcoran Group Real Estate has given us some of the most reliable data to date on the 2007 market.

Perhaps most importantly, the value of NYC apartments and homes in Manhattan rose 8%, to an average of $1,105. Which, as we all understand at face value, is incredibly expensive. The average price for an apartment on the island rose to an astounding $1.395 million. That was a 12% increase over 2006 levels.

Different pieces of evidence suggest the market was primarily a seller’s market for most of 2007. All-cash deals, for instance were transacted with a much greater regularity than the vast majority of US cities.

One of the most important trends in the NYC real estate market picked up pace in 2007: A larger and larger share of New York apartments are being sold as condominiums. Just about 55% of all completed deals in Manhattan this year involved condos. Similarly, condos experienced an average price increase of 9%, compared to 3% for apartments in co-op owned buildings.

Much of this disparity in price increases came from the rise of the luxury condo. Many such new condos that came on to the market in 2007 for the first time are in new buildings designed by some of the world’s leading architects.

More anecdotally speaking, there is evidence of important changes taking place in some Manhattan neighborhoods. Districts that once offered little in the way of residential living have seen a good number of new residential buildings spring up. These changes are creating new living areas and neighborhoods, somehow magically cramming more living space in already crowded Manhattan. Examples include new living quarters in the Financial District and changes to the face of Hell’s Kitchen. Similarly, Alphabet city continued in 2007 to become a safer neighborhood that has become a new cultural hotspot.

All in all, 2007 was a great year for New York apartments generally, especially Manhattan apartments. Growth in value started to taper off towards the end of the year, and there are signs of some trouble on the horizon, but even the most pessimistic predictions call for a drop in value of a considerably smaller scale than the gains that 2007 made. Furthermore, as much needed housing developments occur throughout the island, Manhattan’s real estate market will only improve its ability to meet the high demand for its housing.

Gea Elika is a freelance writer specializing in business, politics and economics. He holds a B.A. in political science and will begin his PhD studies in political economy and public opinion next fall.
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