Are you going to postpone your plans of buying, or giving in to impulse?
The New York Times has something to say to renters. In a sour market, the paper’s own analysis states, “In some once bubbly markets, prices have fallen so far that buying a home appears to be a bargain, based on a New York Times analysis of prices and rents in 54 metropolitan areas. In South Florida, Phoenix and Las Vegas, house prices — relative to rents — are as low as in places that never experienced a bubble, like Indianapolis and St. Louis.”
And if you live in Los Angeles and New York, there’s more reason to find an agent. The NYT adds, “Average house prices across both areas have fallen enough that buying may now be a good deal for many families. Yet there are still significant pockets where renting looks promising — including parts of Manhattan, the New York suburbs and Orange County, Calif.”
Now that can influence the demand, can’t it? But here’s something that will surprise you.
Something just hit real estate analysts this week. The report may not represent the entire community of luxury spenders but this tells us something important. Corcoran, a high-end NYC real estate brokerage firm, was in high sprits recently after it reported that a Bridgehampton property was rented for a hefty price in just a short time. Hamptons.com reports, “A Corcoran Bridgehampton property has rented for $500,000 for two weeks in July (or $35,000/day), the highest rental fee on record for the Hamptons. The record-breaking rental is an 11.5-acre estate known as Sandcastle which includes a 31,000 square foot, nine-bedroom, 11.5-bathroom main house, pool, guest house, tennis, squash and racquetball courts, bowling alley, skateboard half pipe, Movie Theater and more.”
That officially makes the transaction the highest rental in the area. And yes, it happened in a very beaten real estate industry, in a still uncertain market about to recover and in a recessionary period. So I’m more surprised that somebody can afford to temporarily live in an estate during this time than the $500,000 he was billed for.
Oh and did I mention that the $35,000 a day house is also for sale? Get ready with your bank accounts and make sure it has $49.5 million so you can move in.
It’s funny how some people can spend one ordinary homeowner’s two-month mortgage payment to just another day in a mansion.