Once a quarter I publish a newsletter for my clients and mail them a hardcopy. If you'd like to be on my mailing list, please email me your address. If not, you can read my latest newsletter below.

My Newsletter - Winter 2008

Dear Friends,
 
Wow, it really does feel like the holidays in the City with this blast of arctic air!  All we need is a dusting of snow to make it complete.  I hope this finds you all well and celebrating the season with family and friends.

Thank you again for your support this past year and I look forward to working with you and your friends and associates again next year.

Happy Holidays and Happy New Year!
Tom Biss

Winter 2008 Market Update

You cannot say this year has been dull.  There have been so many dramatic events that have had an impact on our real estate market, from the stock market meltdown to the credit crisis.  We have seen unprecedented actions being taken by the Fed and there will be other actions taken by our President-elect to pump more money into the system to alleviate some of the downward pressure on the economy.  While this should help prevent a total catastrophe, there has been, and will continue to be, some painful fallout from this economic uncertainty.  We have been fortunate to have escaped the falling real estate prices that have affected most of the country for the last year and half, but we are now seeing prices in the City in decline.  We have not seen any hard numbers yet, but I believe those losses are currently between 10-20%. There are areas of the City that have been much harder hit, in the outer areas of the City and especially in South of Market.  There are many buyers who are simply walking away from substantial deposits on residences in the new luxury buildings figuring that the values have dropped below their deposits.

I’m not sure where this is all going.  Interest rates are pretty compelling right now—money has gotten cheap and banks are lending again, albeit with stricter guidelines.  But buyers are skittish and those who are buying are asking for and getting substantial discounts on properties and I would expect this to continue through most of next year, and we could see this trend continuing well into 2010.  Of course, if you’re looking to buy a property, it couldn’t be a better time.  We haven’t seen a buyers market like this for many years.  If you’re thinking of selling the key is adjusting to the reality of the current market and price accordingly.  We have to remember the incredible appreciation we have seen over the last 15 years and protect, at least, most of it.