Everytime there's either big layoff news or big bonus news on Wall St., you get a wave of discussion about the effects on home prices in New York City. With Bear Stearns you have a double whammy: A big wave of layoffs and a number of folks whose net worth has been decimated. So it's hard to imagine this not being bad for New York real estate, though I'll pass on saying it will be crucial. Hard to say on that, though I can't abide by the talking head on CNBC right now, Dolly Lenz, arguing that all this tumult could be good for the market. Her reasoning: in times of uncertainty, people will look to hard assets, like homes, as sources of secure investing.
Given the leverage involved with any home investment, are homes really considered hard assets? I mean, they can't be the equivalent of gold.
Apparently Lenz is a superstar broker.