QUESTION: Mr. Armstrong; I listened to you perhaps a bit too late. Put my condo on the market here in New York City and nothing for six months. The realtor said they have never seen buyers disappear so fast. Is there still hope for those of us trapped in the Big Apple?
ANSWER: Real estate in New York has collapsed 25% basis the number of sales by the end of the first quarter. Sorry, but you may have to just lower your price until you find a sucker. Keep in mind that as interest rates rise, banks will tend to run away from mortgages very fast. The last crisis was real estate. They will be more reluctant with real estate than any other sector going forward. If funding for mortgages dries up, prices crash.