Bubble Trouble May Be Brewing in the Big Apple

Businesswire reports:

ForeclosureS.com (www.foreclosures.com), a northern California investment advisory firm specializing in distressed property reported today that certain micro-markets in the New York City metro area are at high risk of price declines that could lead to resurgence in mortgage defaults.

"The Nassau-Suffolk county region on Long Island is ranked by several economists as being second only to Boston as being at risk for price declines as the housing price boom cools down," said ForeclosureS.com (www.foreclosures.com) president, Alexis McGee. She went on to say that median home prices in Nassau County had reached more than $450,000 and in the five boroughs of New York City, median prices had climbed to more than $428,000. She added that when the down payment is factored in, 49% of incomes on Long Island were going to housing expense, while in New York City, the number was 74%. According to building industry and real estate consultant John Burns of Irvine CA.