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Monday, August 24, 2020

Notes From All Over -- The Early Morning Edition -- Part 3 -- August 24, 2020

Permian drillers bounce back! Link here.  Just the other day a reader wrote to remind me of the "bucket-full" of oil-shale-related bankruptcies. In fact, by my reckoning, I am aware of only a handful. And, need one point out, the oil industry is one known for bust and boom (mostly bust, I might add). I'm not quite sure this "bust" is any different than any previous "bust" -- except it appears to be a lot shorter. 

See "WTI meltdown: the Bakken or the Permian" at the link at the sidebar at the right.

Disclaimer: I am inappropriately bullish about the Bakken and Big Oil, and always have been. This does not mean I would recommend anyone invest in the Bakken or Big Oil. Being bullish on the operations and the business of the Bakken and Big Oil is completely different than investing in these areas.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

Wow, the stories keep coming in: Covid-19 pounds NYC. Here's another one -- The WSJ, August 20, 2020: Covid-19 pounds NYC real estate -- worse than 9/11 or the financial crash. 

The Covid-19 crisis has delivered a stunning gut-punch to the New York City luxury real-estate market, applying downward pressure at a rate that surpasses both the 2008 financial crisis and the period immediately following the 9/11 terrorist attacks.

In the West Chelsea district, a recently built ultra high-end boutique condominium known as the Getty slashed prices for its remaining units by as much as 46%. One full-floor, four-bedroom apartment at the Peter Marino-designed building was lowered to $10.475 million from $19.5 million.

“Truth be told, you need to do something drastic and dramatic to attract attention,” said Ran Korolik, a partner at Victor Group, a developer of the project. “I didn’t want to reduce prices by 15% or 20% and then have someone come along and try to negotiate another 15% or 20%.”

The crisis comes at a time when sales and prices in the luxury market were already under pressure. “It’s not like New York City is all of a sudden on sale. New York has been on sale for the past 24 months,” said Tal Alexander, a luxury agent with Douglas Elliman. “Sellers who are motivated and want to do deals need to add on another layer of discount.”

The numbers are unprecedented. Between March 23 and August 16, sales of Manhattan homes were off 56% year-over-year, according to UrbanDigs, a real-estate data site. For properties priced at $4 million or above, sales were down about 67%.

New listings were down by 21%, while new listings priced at $4 million and above were down by almost 35%. For luxury homes sold in the second quarter, prices were also down by about 11%, according to a report by Douglas Elliman.

Much more at the link, of course, as there always is.

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