Recent changes in Real Estate in the Bronx & Manhattan
In the early 2000’s, the real estate market was at its peak. Customers were buying houses and banks were approving the loans without proper documentation or ensuring that the clients met the necessary requirements. These actions had the effect of placing millions of Americans in a position where they owed more that their homes were worth and created a dangerous drag on the economy. These loans were then placed into pools of similar mortgages called collateral debt obligations (CDOs) and eventually sold to financial institutions on Wall Street. Unfortunately, it was not as profitable as investors expected, because customers began to default on their payments. This lead to the biggest financial crisis since the Great Depression; there has been a high incidence of foreclosure, and the real estate market collapsed in 2006-2007.
Now, in 2012, the problem is as follows:
a. There is an oversupply of homes and increasing pressure for mortgage companies to sell-off the record volume of foreclosed properties. This has downgraded home values all over the United States especially in the Bronx County of New York City ().
b. Record high unemployment and underemployment has reshaped housing in the U.S. and will have a lasting impact on the country as more former homeowners are now turning to renting. In addition, the percentage of potential home buyers is largely reduced for the long term.
Sales Statistics for BRONX County NY |
Realist's most recent recording date for this county is 02/09/2012 |
Single Family Residence |
Time Period | Number of Sales | Median Sale Price |
Dec 2011 | 32 | $320,000 |
Dec 2010 | 45 | $340,000 |
Nov 2011 | 31 | $305,000 |
Nov 2010 | 29 | $390,000 |
2011 YTD | 489 | $342,000 |
2010 | 507 | $350,000 |
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The government has devised several strategies to help re-shape the economy of the United States such as: