New York real estate

The New York Real Estate market has so far remained a little aloof and unaffected by the housing bubble in the rest of the United States.  This is true especially in and around Manhattan, as compared to the problems being faced in the rest of the country.  This is primarily due to the continuing demand for housing in the area, due to its proximity to Wall Street, and due to limited availability. But despite the demand, the prices have reached astronomical proportions, and are probably the next on the line as far as the housing bubble bust is concerned. The last time a bust occurred was in 1987, when the real estate prices were affected significantly.

The New York Real Estate market had been booming over the last decade, mainly attributable to the fact that the salaries earned by brokers and bankers has generally been significantly higher compared to elsewhere in the country, almost ten times the national average.  Further, they were also offered generous mortgage packages by their employers, which ensured sustained demand for housing in the area.  However, a bust does not seem far away, and unless the salaries and bonuses continue to rise, problems are likely to emerge in the near future.

At the present moment, most of the worries have been faced by the people involved directly or indirectly in the market for sub-prime mortgages, from investment bankers to accountants and security lawyers.  With salaries likely to fall owing to the present crisis, the New York Real Estate market is bound to be affected sooner rather than later.