Industry Experts Speak on the Market and Economy
Today I had the pleasure to attend the Inman News sponsored Real Estate Connect ’08 NYC in Manhattan. It’s a three day conference on the real estate market and real estate marketing. Many movers and shakers in the real estate world were panelists. Everyone from Craig Newmark, founder of craigslist to the folks from zillow, industry leaders like Dottie Herman, head of Prudential Douglas Elliman, Pamela Liebman of Corcoran and Economics Professor Nuriel Roubini of NYU’s Stern School of Business spoke on various topics. Of course, the hot topic was what’s going on in the real estate market and the economy.
The Worst is Yet to Come
The most bearish of the bunch was Prof. Roubini. He claims we’re in for a monsterous recession (his words) and mentioned some pretty disturbing figures. He said that if the U.S. housing market were to lose 30% of it’s value that would mean a 6 trillion dollar hit for the economy. In his view, the worst is yet to come. The panelists agreed unanimously that the credit crisis was a result of lax regulation which led to too easy money which caused inflation in housing prices. The continued shifting of credit risk to the next guy while everyone along the food chain made big money in fees was also a factor in the credit market implosion.
NYC Still a Bargain – But What About Hoboken?
The bull in the group was Dottie Herman, who pointed out that the combination of the weak dollar, lots of weathy buyers and New York City’s allure as a destination for foreign buyers was keeping the local market on an even keel. She did note that location becomes even more important at times like these.
What do you think? Is our local economy doing well enough to support current housing prices here in Hoboken? Stay tuned for more interesting insights from tomorrow’s events.