1989 vs. 2007

With so many "Gloom and Doom" stories being written in the media recently, it's easy to see why the public is fearing a real estate meltdown, especially here in Manhattan. But as someone who has experienced the real estate meltdown of the late '80s/early '90s, I can safely say that this go-round is nothing to fear. Let's compare the two situations.

Glut of Apartments on the Market:
In 1989, many rental buildings were being converted to co-ops, causing a glut of product on the market. Today, while it seems like condos are "taking over the market," there is actually less product on the market as compared to 18 years ago.

Rising Interest Rates:
Today's 4.75 percent interest rates is relatively affordable compared to the 19 percent interest rates of the 1980s.

Of course, there are other factors to consider when comparing the two different housing slowdowns - the credit crunch of 2007 for example - but the fundamentals behind the two market situations are wide.

Thus, today's market is nothing to fear.