Fighting global warming

The price difference between various real estateBrooklyn Heights selling for about $750 a square.
markets is what many people try to profit from.Since Downtown Jersey City is at about $550 per
I call this the spread. For example, Manhattansquare foot, then this would imply a spread per
residential real estate prices are roughly $1000 asquare foot of $200 ($750 - $550) between
square foot. Downtown Jersey City and otherDowntown Jersey City and Brooklyn Heights.
equivalent outlying urban areas of Manhattan, suchI am looking for those spreads to narrow. A lot
as Brooklyn Heights and Park Slope, might beof development is transpiring in Downtown Jersey
$600 a square foot. That makes the spreadCity. This will probably keep prices down in the
between those markets about $400 ($1000 lessnear term (next couple of years) as a lot of
$600) a square foot.inventory comes on the market and requires
Bond traders or people that trade stocks look formarket absorption. However beyond the next
or observe price spreads. Bond traders refer tocouple of years as Downtown Jersey City
the spread in basis point and in yield to maturity.improves, I believe those spreads will narrow.
So if a corporate bond yields 8% and anAs larger developers further their projects and
equivalent term US treasury bond yields 6%, thenadvertise their projects on an international level,
they would say that corporate bonds trade at amore attention should be brought to bear on
spread of 200 basis points or 2% (8% - 6%) toDowntown Jersey City. I speculate that Donald
US treasuries.Trump has every intention of marketing his
In real estate people reach out to more farTrump Jersey City beyond the local markets. Plus
reaching real estate markets in the hope thatlet's not forget about the new $130 million dollar
those markets may mature or improve and thatinternational golf course over at Liberty State
the price may rise closing the spread betweenPark. This is all free advertising on the coat tails of
that market and another.these projects and I further speculate that these
Example: Brooklyn Heights versus Downtownprojects will bring international attention to
Jersey City.Downtown Jersey City.
In Brooklyn Heights versus Downtown JerseySo expect to see some price spread movements
City, I observed there to be a significant pricebetween the above mentioned markets over the
spread. The selling price per square foot fornext ten years. Although there is no guarantee
housing in some comparable neighborhoods ofthat the spreads will narrow, I speculate (based
Brooklyn Heights can be significantly higher than inon the above circumstances) that the probabilities
Downtown Jersey City.point to the spreads narrowing rather than
Recently I previewed several properties inwidening.