New York Is Vulnerable

Forbes has a nice graph showing how vulnerable real estate prices are to falling in some cities. New York is one of the vulnerable cities. Of course, if NYC is vulnerable, than so is the rest of the metropolitan area, including Monmouth and Ocean counties.

["I think low affordability does present a risk for markets," says Celia Chen, director of housing economics at Economy.com, a research company based in West Chester, Pa. The firm supplied income, home price and affordability data going back to 1980 for 12 major metropolitan areas. "It's a condition that can't persist forever. If income streams are not sufficient to cover your housing costs, eventually demand is going to slow."]