Monday, January 28, 2008

Clarrett Price Chops the Forte

The Clarrett Group, which owns the 340 Court development site, has developed a number of condominium projects in recent years. One of their most recent projects is the Forte, a highrise in the BAM cultural district with 110 units. Brownstoner reports that some of the units just got a $100,000 price chop.

In other (related) news, the chart above comes courtesy of economic blogger Calculated Risk. Note we are seeing the steepest drop off in new home sales (national) in the 45 years graphed. Note also, the unprecedented (and unsustainable) distortion in new home sales caused by the Fed slashing interest rates in response to the recession of 2001 and 9/11.

How the correction in housing will affect developers' investment decisions will be interesting to follow. Ditto for the inflationary monetary policy currently being pursued by Fed Chair Bernanke and the Bush administration.

We'll see.
Update - I'm having difficulty seeing the graph on my computer. Click the Calculated Risk link if it doesn't appear.
UPDATE 2: See story in NY Times:
"Sales of new homes fell last year by 26 percent, the steepest drop since records began in 1963, the Commerce Department said on Monday."

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