NYC real estate slump continues until political shift changes: Don Peebles
Peebles Corporation CEO Don Peebles on his outlook for the New York City housing market.
New York City's real estate "pain" will linger until the political shift changes, said Peebles Corporation CEO Don Peebles, giving his outlook for the city's housing market.
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Peebles told FOX Business’ Maria Bartiromo on “Mornings with Maria” that in the early ’90s New York City was a “very unlivable city and then the city went so far as ultra-liberal as it is to elect Rudy Giuliani and then Michael Bloomberg.”
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Peebles explained that for about two decades the city was governed by a "progressive Republican mayor" and he believes that "it is going to have to get worse before the political shift changes."
"Right now New York City politics has gone heavily to the left and these Democrat socialists are getting elected in state and city government," he said. "So I think there is going to be more of that in this next election cycle, so, I think there is going to be pain first.”
Real estate activity in the Northeast is picking up, but residents still appeared hesitant to move into Manhattan last month.
Residential sales contracts in the Big Apple fell 31% when compared with the same period last year, according to a report by Miller Samuel Real Estate Appraisers & Consultants for Douglas Elliman, with the largest decline seen among the most expensive listings.
There was a 75% decline, for example, in signed contracts in the $4 million to $4.99 million range.
On the other hand, activity in the suburbs was booming.
Deals valued at more than $4 million increased six-fold in Greenwich, Conn.
On Long Island, deals valued at more than $400,000 comprised the largest share of annual gains in single-family contracts signed, data showed, and that excludes the expensive Hamptons area.