Thursday, November 1, 2007

Wall Street Bonus Drop Presaging Real-Estate Meltdown?

From New York Magazine:

The annual sky-high Wall Street bonuses are falling — by an estimated 10 percent this year. So announced state Comptroller Thomas DiNapoli yesterday (just in time to coincide with our Money Issue), no doubt setting off much manicured-nail-biting. What does this mean for NYC real estate, a market now accustomed to massive infusions of bonus cash? We asked around.

Brokers around town say the condo market was flattening anyway, and a drop in bonuses will temper demand for upscale units — but not slow down starter homes or trophy sales. “Bonus season, as nice as it is, has minimal effect on our market in general,” says Andy Gerringer, who heads new development marketing for Prudential Douglas Elliman. “It's not like 500 financial professionals decide to buy a home all at once — many of them already have nice homes.”...MORE