New York City joins housing slump

While the housing bubble decline has adversely affected much of the United States, some previous bubble markets like New York City, Boston, and Washington, DC proper, have been largely resistant. Well, according to Robert Toll, CEO of home builder Toll Brothers, New York City is now taking it on the chin.

According to the transcript of the company’s conference call, provided by Thomson Street Events, Mr. Toll is asked if there were there any areas that stood out as stronger than others. Mr. Toll responded: “I wouldn’t say so. … No, I reviewed that just this Monday night with all of the regionals, and unfortunately, I don’t see any areas of strength. We used to be able to claim New York City. We don’t claim that any more. We used to claim Connecticut, and that slowed down a little bit. I don’t see any standouts.

Later, he added: “Been a tremendous change in the last six weeks. Up to the financial debacle crisis that we’ve entered, New York City was a nice stand-alone, and a beacon, but it has now joined the ranks of the rest of the country. … I would expect the financial business in New York to probably lose 100,000 people. You don’t think it will be that high, guys? Well, I hope I’m wrong, but that’s got to have a serious impact on the price of real estate, and I would think that the foreign market, which supported in large measure the pricier condos in New York City, is not there in force as it was. What with the euro going down in comparison to the dollar lately, and with their own economic crisis. So I would think you are in for a more challenged time in New York.

Put a bunch of the city's highest paid employees on the unemployment line, and it will have an effect.