Eventually the New York real estate dam will have to break, as buyers are forced to confront the fact that their homes really are worth that little.
The New York Times reports on a foreclosure auction held at the Javitz centre, where homes were scooped up at “below market” prices. For example: A home in NJ was sold for $245,000 despite an appraised value of $525,000.
Given that auctions are a pure market model, we’re not sure what “below market” actually means. Perhaps it has something to do with still not wanting to face reality, blisfully believing that it’s all a “temporary dislocation”