Price Cuts at Bed Stuy Townhouses: Is This a Trend?

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Browsing Natefind, we noticed that three Bed Stuy townhouses had their asking prices cut last week. (Actually four, if you count the $1,000 trim that this place got to give it the psychologically more appealing price of $699,000.) Some readers may remember we spotted a similar spate of reductions back in June, when Corcoran cut three houses in Bed Stuy and three houses in Crown Heights in one week. Despite eliciting the strange accusations that we had it in for Bed Stuy, the post touched on the kinda obvious idea that when the market gets nervous, it’s the more fringe areas that feel it first. Another explanation was that you had these big firms who didn’t really understand the area marching in there slapping unrealistically high initial asking prices on the houses. In this current batch, two houses are Douglas Elliman listings and one is Corcoran. So, anyway, are these cuts significant or are we reading more into this than there is?
576A Monroe Street [Douglas Elliman] GMAP P*Shark Natefind
456 Bainbridge Street [Douglas Elliman] GMAP P*Shark Natefind
585 Macon Street [Corcoran] GMAP P*Shark
Corco Cutting Prices East of Classon [Brownstoner]

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  • They may be trimmed 20K each now, but these places will be worthless after AY is built.

    Just kidding. Beautiful-looking homes, someone ought to jump on them soon.

  • Of corse it is significant. With the mortagae meltdown the first areas to feel the crunch will be the fringe neighbourhoods and then the rest of areas will follow.In the coming months you will see prices trimmed in most neighbourhoods.
    I still think these will have to be trimmed significantly to get even the least amount of interest let alone any offers. I personally like the Monroe house though but in these conditions the price drop still has a long way to go.

  • The top-tier BS properties are still getting bidding wars. These three places, while lovely and full of potential, all have some issues from where I stand, like weird layouts, windowless “sleeping areas,” or a configuration that doesn’t match the current C of O. That being said, all those problems are fixable – for a price. I hope these price cuts encourage people to take a chance on a great neighborhood.
    I would imagine that the recent much-hyped difficulty of getting a mortgage for more than $500K is also affecting these prices.

  • Someday this war’s gonna end. That’d be just fine with the boys on the boat. They weren’t looking for anything more than a way home. Trouble is, I’d been back there, and I knew that it just didn’t exist anymore.

    RIP Real Estate Bubble
    The What

  • I love that so many people talk out of their ass. Have you actually TALKED to anyone about the real estate market 11:37?? Apparently not. I’ve talked to quite a few real estate agents this week and they have said that inventory is still low and that anything decent is getting not only multiple offers, but some still over ask. Where do you live anyway? By the judge of your neighbourhood spelling, I’m guessing not from around these parts.

    It’s people who have a constantly depressive and pessimistic personality that really need some attention, not the credit markets. They will be just fine in the long run. As for you, I think you need a mood stabilizer.

  • I think there is truth to both positions. These areas(I refuse to call them fringe, what does that mean?) are always the first to feel any economic pinch. Last hired, first fired. That said, these places were aggressively priced to begin with, and the large firms knew they would never get those prices, no matter what the rest of the RE market was doing. They always knew they would have to reduce them in order to sell.

    Hopefully, a return to sanity will mean that these homes, in these neighborhoods, will continue to sell briskly. They are nice houses in decent neighborhoods, and about the only brownstones still available for non millionaires. They will sell, despite all of the protestations to the contrary.

  • I, for one, was hoping to buy a place (my first) this year and have decided to hold off for at least another year. It seems like a pretty volatile time to buy a home considering the conditions right now (maybe things won’t take a dive here in NY, but it seems to be getting more likely that they will). I’m selfishly hoping that they will so I can actually afford a decent place to live!

  • Quality houses will sell and ARE selling, as a previous poster noted, at above asking price. I have gone to two open houses on my block in the past two months and both houses, which were in good condition and appropriately priced by their brokers, sold for above asking. Blanket statements about the state of the market are misleading, the value of homes in this area and in this market are case-by-case.

  • I can remember sitting in a friend’s apartment in the East Village in the late 1980s after the market crash. My friend had bought a place between Avenues C&D when it seemed like NY real estate would never stop going up. Speculators were actually buying apartments sight unseen in those days. Market crashed, he needed to move, but he was stuck with a mortgage higher than what he could sell it for.
    NY is the greatest city in the world and it’s worth a premium to live here, but speculation, greed, and insane Wall Street bonuses have been driving this market the last few years. If those bonuses dry up which they probably will with the credit crunch, next year will be a terrible time to be selling but a great time to be buying. The market may even go down for years which it did between 88 and about 94 or in the 60s and 70s. I think the only people buying right now are sellers who are transferring the money from their old place into a new place. That’s a sign of a very unhealthy market, it needs some new blood but who can afford these prices?

  • US July pending home sales index falls 12.2 pct to lowest in six years .

  • The entire east coast, from northern Maine down to the southern tip of Florida, will be worthless once AY is built.

  • I say AY problems internationally.

  • “I think the only people buying right now are sellers who are transferring the money from their old place into a new place. That’s a sign of a very unhealthy market, it needs some new blood but who can afford these prices?”

    Yup. Classic pyramid/ponzi scheme. Mathematically destined for failure. No more “new blood” to support the pyramid. ‘Crash’…’Boom’!!!

  • 12:34, you’re the one who sounds hysterical.

  • attention freaks:

    It is always darkest before the dawn.

    You just don’t know when you should open your eyes, after finally getting some sleep.

    B.M.N.T.

    The Appraiser.