Bernie Madoff Effect

On Fox Business News last week, Dolly Lenz, vice chairman of Prudential Douglas Elliman, discussed how the Bernard Madoff scandal is affecting New York real estate. Lenz said Elliman has already lost six deals because buyers who lost money with Madoff no longer have cash for down payments, and she expects more deals will fall through. Lenz said that in New York and in Boca Raton in Florida, sellers whose deals have fallen through and now looking to unload their homes to anyone who can pay with cash. And although there are fewer people buying homes, most buildings still want buyers who can pay cash, and won't consider buyers who need financing. Lenz said, however, that although the median price in the city has fallen, the price per square foot is still strong.