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The question du jour is, "Why?" Well, NYC has been the indirect recipient of over a trillion dollars of federal and central banking aid. As the de facto capital of the FIRE sectors (finance, insurance and real estate), it has seen an unprecedented amount of liquidity, loosened regulation and aid pumped through its borders. Will the price uptick last? Well, one should be asking themselves "Will the government bubble blowing last?". I feel the answers are highly correlated. With that being said, the basic economic laws of supply and demand and the associated market dynamics that go along with it are still quite apropos, as I attempted to demonstrate a couple of years ago in the post - “Who are ya gonna believe, the pundits or your lying eyes?”. Here is that same area about a year later...
We shall dive into this further in the next post on Shadow Inventory - the updated metrics.
Interested readers can follow me on twitter, peruse my Residential Real Estate postings and/or my Commercial Real Estate opinion and research. I will be lecturing on this “realistic” viewpoint of real asset valuation and the outlook for 2011 as the keynote speaker in both New Amsterdam (Harlem, NY) and Amsterdam (the Netherlands).