Good time to buy??

[gitak]

People have been buying real estate like crazy and real estate values have been skyrocketing as a result of the mortgage rates being so low. The rates will probably start to rise, but will the real estate values decrease to make-up for the increase? Property values seem so inflated and I'm concerned that if I do buy, the value will fall back to where it should be once mortgage rates increase and I'd be stuck paying for a place that is impossible to sell and that I can barely afford. ....or am I just a paranoid first-time buyer? Any opinions?

[Edward]

That's one of the scenarios - completely reasonable. In Manhattan, though, the prices do not decline no matter what. :(

[Edward]

http://www.elliman.com/MainSite/MarketWatch/

[djf17]

I would wait 3 to 5 years and see what happens when all the funny mortgages people are taking out now adjust. There will be a significant amount of people who cannot afford there current apartment after their fixed portion of their adjustable mortgage adjusts...

[thomasjfletcher]

If tou can afford it get a mortgage now with a low fixed rate. Mortgages currently have low rates and are ridiculously easy to get (perhaps from a shonk!). If and when the economy falters house prices will be lower but the banks won't be lending. If I could I'd buy now.
tom
www.nyc-architecture.com

[djf17]

If tou can afford it get a mortgage now with a low fixed rate. Mortgages currently have low rates and are ridiculously easy to get (perhaps from a shonk!). If and when the economy falters house prices will be lower but the banks won't be lending. If I could I'd buy now.
tom
www.nyc-architecture.com

This is incorrect - syndication of home loans in the secondary market have made deliquency rates hit record lows across the board. There is more evidence to suggest that banks will increase their lending and flexibility in the future than vice-versa, irrespective of an impending rise in interest rates. thnx...

[billyblancoNYC]

As long as NYC remains safe and relativelty clean, development/gentrification/prices will continue to march fairly unabated for the foreseeable future. The main wild card is terrorism, but last time, that seemed to be more of a buying opportunity for a small window of time than anything else. How else can you explain the BOOM in residential by Wall St. and the millions being paid for condos ACROSS THE STREET from the NYSE. Crazy, but this is a whole new world. A world on NYC being the BEST CITY in the world, once again. This time, though, there's tons of money to put it into overdrive. Tough to stomach if you want "prime" real estate, great if you can go "fringe" and great if you knew NYC in the 70's - early 90s. Really great.