The downturn is in full swing and this has been going on for months leading to frustrations and anguishes substantially. There is nothing new to this and it along with the moribund market has become a part of the daily life. But there have been some extraordinary developments in the recent months and it is the cause of concern. Furthermore, these have not only made the professionals aghast but have made them predict more troubles in the forthcoming days.
In this regard the evaluation of Mitchell, Maxwell & Jackson Inc., a New York residential real estate appraisal company, has appeared to be decisive. As indicated by it, an avalanche of “dramatic slowdown” is going on and that may lead to more catastrophes. There is no doubt that prices have fallen down 15-20% from their summits (if not more) and declines are likely to continue since the pertinent sectors are vulnerable.
There are more dreadful appraisals. According to the prudence of Jeffrey Jackson, co-founder of MMJ (Mitchell, Maxwell & Jackson Inc) the fourth quarter’s contract volume plummeted a “horrific” 75% from a year earlier. He reached this conclusion after making a detailed analysis of more than 350 contracts inked since September 1.
The only reason behind this is that contracts take time to put up the shutters, and in particular in the vicious world of co-op board approval, this foreshadows just how tough the first quarter may be. In its own words, several deals that were dealt with before the month of September have been redone at lower prices while inventory levels are “ballooning as absorption of new developments drops off.”
Mr. Jackson said, “Retreating values are now clearly broad-based and affecting all neighborhoods, price points and property types.” But the real estate consultant is still hopeful. There have been some developments in the contract signings and the consultant counts on this.
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