$360K for One Bedroom Worth the Price?

The GAO study released Tuesday predicts that the number of foreclosures on homes backed by subprime or low-documentation mortgages could easily double in the coming months or years, which could put tremendous pressure on housing prices throughout the city and suburbs.
(SNIP)
...that will be of little comfort to New York City residents trying to sell their homes in areas already riddled with foreclosures, with more to come. The city’s eastern precincts, already pounded by foreclosures, seem likely to suffer the most.

http://www.crainsnewyork.com/article/20090728/FREE/907289972#

arches wrote: Does two homes and one studio apartment in foreclosure in PH qualify as "riddled with foreclosure"?

http://hotpads.com/search/#lat=40.676895239262535&lon=-73.97180557250977&zoom=24&previewId=314102357&previewType=area&listingTypes=foreclosure&pricingFrequency=once&visible=new,viewed,favorite&points=lowes&areaBorders=heatMapForeclosurePerHousehold

Nope. However, a few points:

The OP post was (I believe) across Washington, which is (arguably) CH, and definately subject to a higher percentage of foreclosures (see http://www.nytimes.com/interactive/2009/05/15/nyregion/0515-foreclose.html).

Having a higher rate of foreclosres a stones throw away in itself puts downward pressure on prices.

Prime loans are the next shoe to drop. As relatviely higher-income as individuals are in PH compared to say, CH, you cannot have unemployment near 10 percent without having downward price pressure on the higher end of the market as well.

The trend will continue play out from the outside in, in slow motion.

From roughly Flatbush in the west to to NY Ave in the east, and Atlantic in the north to Eastern Pkwy in the south (i.e., Prospect Heights and a large portion of northwestern Crown Heights), there are currently a little less than 200 homes in pre-foreclosure. Keeping in mind, the pre-foreclosure process in NYS can take up to 18 months, and in that time it is likely that many homeowners will be able to negotiate a refi or sell the home at market rates to pay off the debt. In other words, there is very little that is actually currently at or near the auction process (the aforementioned "Does two homes and one studio apartment in foreclosure in PH " by arches).

Still, nearly 200 is a very, very large number.

Seeing this thread started in Dec. 2008, I'm pretty sure the OP has moved on.