Wealthy foreign buyers force New Yorkers to the co-op market: VIDEO

Dolly Lenz, vice chairman of Prudential Douglas Elliman, revealed a new term for the foreign money flooding the city’s ultra-luxury real estate market: “fright capital.”

In an appearance on CNBC this afternoon (watch the video above), Lenz said concerns about the global marketplace are bringing European and Chinese money to high-end New York City condominiums, and pushing prices beyond the reach of the typical wealthy New York buyer.

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Surprisingly, she said that the Russian presence in the market is beginning to wane, contradicting recent declarations that their influence would only grow.

Nevertheless, the high, all-cash bids by foreigners are relegating native New Yorkers to the co-op market. While domestic home buyers can’t always compete with foreigners’ huge budgets, they tend to be more willing to disclose information to a co-op board in order to land a trophy city property at a relatively cheaper price.

Though Lenz acknowledged that next to none of the buyers at the top of the city’s market have any need to be tracking mortgage rates, she provided a interesting note on her own home loan. The power broker said she’s refinanced seven times in the last year alone.