New York Home Prices

Tuesday, October 02, 2007
I was watching a financial show and they were talking about the housing numbers that came out today. The decline in housing sales is remarkable, but one city continues to buck the trend, Manhattan. They were showing off a condo, 1 bedroom, 1.5 baths going for $1.6 million. This was the typical New York apartment.

The reason I comment on this, is not because I think the price is ridiculous (which I do) but because of what one of the guest on the show said. They basically said that they thought the trend would continue because of Wall Street. You see, people on Wall Street get these big bonuses, and that means they can afford to pay a lot for their houses. Since Wall Street isn't going anywhere, it stands to reason that home prices in Manhattan must stay hi.

Wow, didn't realize that Wall Street was a new phenomenon. I figured it has been around for quite a while, a little over 100 years in its current form. People on the street have been getting insane bonuses for a little over a century, but I guess they were all living in boxes on the side of the road, because how else can you explain the recent insane home prices there?