I was up in Bedford, New York this weekend. Bedford is generally an enclave for the wealthy who like to keep a country estate not far from NYC. I happened past one (of many) real-estate offices and noticed a flyer for local listings…
As you can see there are a lot of very expensive properties being listed. This flyer was 22 pages long with listings on both sides of each page. I’d estimate at least a few million dollars of property taxes are tied to these houses.
In a similar vein I’ve been noticing that, on any given day in the New York Post, the first 10-15 pages contain multiple listings for ‘new’ beach mansions in the Hamptons. On one recent Tuesday I estimated over $60m worth of property was listed within 15 pages.
It has me thinking the following:
1) Do the wealthy know something is coming and are moving to exit real-estate ASAP ?
2) Who do they think will buy these houses at these prices ?
3) How many of these properties are carrying ARM mortgages like during the last crash ?
4) Was most of this property bid up by low interest rates and highly levered speculators ?
5) Can foreigners really be lining up like crazy to buy overvalued real-estate in rural parts of New York ?
Enquiring minds want to know…