Market Update: Bad News For Subprime-Stunned Nabes

Lies.

Posted by: guest at March 26, 2008 9:12 AM

left-wing conspiracy. or right-wing perhaps.

Posted by: guest at March 26, 2008 9:14 AM

This guy's got to get his talking points in order. It's not that sales are down, it's that inventory is low. And prices aren't really falling -- they just reflect a different mix of properties on the market. I mean, come on. Doesn't he know that Brooklyn is insulated from what's happening in the rest of the world? Prices never go down here.

Posted by: guest at March 26, 2008 9:33 AM

(I will reframe from using profanity.)

There current credit crunch is not easing, in fact it's getting worse!

Like the Clear Channel Communications deal. This deal was for 19 Billion dollars but, the bank could not find any one to buy the debt. No one want to hold debt on their books!

Major Buyout Deal
Is Close to Collapse

http://online.wsj.com/article/SB120647527104363151.html?mod=hpp_us_whats_news

The deal was typical of many made during the buyout boom of recent years, which was fueled by easy money and put such well-known companies as Dunkin' Donuts, Neiman Marcus and Hertz Corp. into private hands. Private-equity firms loaded up the companies they bought with debt -- in the form of bank loans and bonds -- to finance their purchases. But the credit crunch has dried up the market for those loans, leaving some banks that arranged financing for buyout deals stuck with them.

Just like housing.

And... Remember I said that the BIG BOYS never lose. They will past on the loses to the Taxpayers, well....

Taxpayers May Be Liable From Bear, Mortgage Rescue

http://www.bloomberg.com/apps/news?pid=20601087&sid=a4ZyPj4AHfmU&refer=home

March 26 (Bloomberg) -- Even as the Bush administration insists it won't risk public funds in a bailout, American taxpayers may already be liable for billions of dollars stemming from Federal Reserve and Treasury efforts to quell a financial crisis.

You can ignore the current economic situation at you own peril!

The What

Someday this war is gonna end....

Posted by: guest at March 26, 2008 9:49 AM

Hey What.

I like your posts without the profanity.

I am actually gleaming little bits of insightful information for once.

Keep it up!

Posted by: guest at March 26, 2008 9:55 AM

Does The What really not know that he should be refraining from using profanity as opposed to "reframing?" If not, it kind of undermines any intellectual argument and he should probably stick with the profane ranting.

Posted by: guest at March 26, 2008 9:59 AM

lemme try:

1) This is all due to Atlantic Yards!
2) The international investors (Irish carpenters?) will save Brooklyn
3) Article is clearly written by a bitter rent-stabber
4) The laid-off Wall Street financiers will sell their Manhattan pads and buy in East New York, saving the market
5) Lower prices mean it's the perfect time to BUY BUY BUY

is that enough?

Posted by: guest at March 26, 2008 10:13 AM

The Bed Stuy market is crashing? Gee, I never saw that coming!! Who would have thought? What's next? The zillions of new condos won't sell? Developers will pull out of new construction, leaving gaping holes in the ground? Could it really be?

Posted by: guest at March 26, 2008 10:24 AM

Empty abandoned buildings in Bed-Stuy -- Oh, the New York of my youth, how I missed you.

Posted by: guest at March 26, 2008 10:32 AM

What the post tells me, moreteasir, is that he is parroting what he reads elsewhere, and may not actually be very bright.

Posted by: guest at March 26, 2008 10:41 AM

I'm no economist, but I can tell you that Bed-Stuy at least continues to change in some pretty dramatic ways. Every day I see more and more new people (whether you think that's good or bad, it's reality). As an owner in this area, I actually think a cooling of prices will help in the long run. More people looking for a home in an up-and-coming area will buy in and continue adding momentum to these changes. Had prices continued to skyrocket beyond what was reasonable these people would not be here. I think in a year or two or three (not long if you're planning on staying put for a while) this will only be good for the area.

Posted by: guest at March 26, 2008 10:49 AM

So we were looking to buy in Bed-Stuy. Coming from the Bronx we were shocked by prices. And in some cases...a lack of quality in the product. What we saw for the most part was 1 br condos going on average of 350-400k off the G or A/C subway lines. We really didn't know what to think. Does this indicate that possibly prices might go down to a more realistic amount? Or are we just unrealistic in what we expected to see for prices? I know in areas like Cobble Hill or Park Slope 400K seems to be the price for studios...if you're lucky...

Coming from an area where 3BRs go for 200k it's a lot to take in.

Posted by: guest at March 26, 2008 11:00 AM

Lower prices -- dramatically lower prices -- will be better for ALL the brownstone areas, as they become affordable again to the middle class people who make neighborhoods interesting and successful. It isn't good for a neighborhood to be so expensive that no young people can move in unless they are hedge fund managers.

Posted by: guest at March 26, 2008 11:03 AM

What: I don't see what the connection to a huge deal for Clear Channel has to do with house sales in Bed-Stuy. Yes, the credit market is tightening for these multi-billion dollar deals, but people can still buy a house in Bed-Stuy if they have the money. (They always could, btw.).

As to the article, asking prices have declined since the crazy days of a few years back and inventory is on the market longer, but as 10:49 states, the neighborhood of BEd-Stuy is definitely changing and any softness in the market will end once we pass this current market adjustment. And no, I don;t think prices will fall much if any in BEd-Stuy.

Posted by: guest at March 26, 2008 11:20 AM

already falling.

Posted by: guest at March 26, 2008 11:31 AM

11:20, you're joking right? Seriously that was a funny joke, cause I know you must be joking!

They're falling everywhere!

Living in a brownstone and wishing really hard doesn't give you the power to negate fundamental economic forces. Prices are falling everywhere, INCLUDING Bed-Stuy, and there's nothing wrong with that.

Healthy markets go up and they markets come down. The US housing market has been severely unhealthy for about 6 years. Think of this "crisis" as the fever that kills the infection.

Posted by: guest at March 26, 2008 11:40 AM

11:20, you're joking right? Seriously that was a funny joke, cause I know you must be joking!

They're falling everywhere!

Living in a brownstone and wishing really hard doesn't give you the power to negate fundamental economic forces. Prices are falling everywhere, INCLUDING Bed-Stuy, and there's nothing wrong with that.

Healthy markets go up and they markets come down. The US housing market has been severely unhealthy for about 6 years. Think of this "crisis" as the fever that kills the infection.

Posted by: guest at March 26, 2008 11:40 AM

Where is your data 11:31?

The article above has to do with sales volume and prices are "nudging down."

Get a life you bitter, bitter renters.

Posted by: guest at March 26, 2008 11:42 AM

that natefind.com website is amazing!

Posted by: guest at March 26, 2008 11:46 AM

It is easy to borrow and it it easy to refi - which I just did - if you have good credit. Always was the case. Always will be.

11:40/11:42, Prices are flaling in LAS VEGAS and MIAMI. Not New York. Don't you know how to read?

Brokklynnative: To think that some broker's money ever finds its way to Bed-Stuy is a huge stretch.

Bed-Stuy is suffering from foreclosures due to people getting loans and mortgages that they really couldn't afford and most of those people were long-time residents of the area. That has nothing to do with some one on Wall Street not spending his money in the hood.

Posted by: guest at March 26, 2008 11:49 AM

Prices are falling in NYC, your denial notwithstanding.

Posted by: guest at March 26, 2008 12:10 PM

A recent report came out showing that many high-ended buyers are hurting from the same deceptive loans subprime buyers were using. As in, everyone's basically screwed, the higher end borrowers just have longer to go before they start to feel the pain.

Also, why should New York City keep going up? It's not an ancient world heritage city like London, Paris, Tokyo, Warsaw, etc. Brooklyn is as old as Rutherford, New Jersey. The UK and European markets are starting to see huge price corrections of their own. 2010: Brooklyn where?

Posted by: guest at March 26, 2008 12:11 PM

Um, no 11:49, Bed-Stuy isn't merely suffering because people got loans they couldn't afford, the bigger picture is that people in Bed-Stuy used credit that they shouldn't have because they assumed prices would go up forever and therefore their risks were minimized to the point of non-existence (sounds like Wall Street). People all over brownstone Brooklyn, the rest of the city, and the entire country did the same thing as a matter of fact. The difference between Bed Stuy and richer neighborhoods is that poorer people feel the crisis first and most acutely. Just because there probably wont be many subprime foreclosures in a few other neighborhoods doesn't mean the pain wont be felt in different ways, e.g. lost jobs, lost or smaller bonuses, defaulting tenants, smaller profits and therefore smaller salaries etc which lead to lower prices and desperate sellers.

Also, Wall Street money does get spent in the "hood" either directly by people on Wall Street who chose/choose to live there because they actually like it or think its a good investment, or indirectly by people who got pushed out of richer neighborhoods by Wall Streeters with money to burn.

Posted by: guest at March 26, 2008 12:15 PM

11.49 - you can't refi if you don't have enough equity in the house regardless of your credit. The falling values of homes have caught out people in this way - they can't refi.

Are you lying or are you just ignorant?

Posted by: guest at March 26, 2008 1:51 PM

"It's not an ancient world heritage city like London, Paris, Tokyo, Warsaw, etc."

(record player screech) - Tokyo an ancient world heritage city? Dude, have you ever been to Tokyo? Sure, the name has been around for a long time, but we firebombed most of the city 60 years ago and it now has a culture of planned obsolescence in its architecture. I have seen you post similar ramblings before with that list of cities. Going forward, why don't you leave Tokyo out of those, m-kay? You obviously know nothing about it.

Posted by: guest at March 26, 2008 2:02 PM

That article said nothing. So little real information. It said foreclosures on "homes" in those 4 neighborhoods. That means coops and condos too, don't forget.

Unqualified buyers were not buying million dollar brownstones. They're buying coops under $500K that they still couldn't afford. I don't feel like this applies much to the people who own houses, here. Also the way the stats are measured for existing home sales nationwide is very narrow, pretty ridiculous and hardly applies to NYC real estate either.

No doubt sales will lag and people won't get the prices they ideally greedily want. I'm glad those overpriced houses are selling for less. It means buyers can negotiate more, now. It's a good thing. It opens up the community to more types of people. Like more people in media and arts. Who wants to live with a bunch of bankers?

Posted by: guest at March 26, 2008 2:02 PM

Warsaw was flattened too by the Germans in WWII, then rebuilt.

Posted by: guest at March 26, 2008 2:12 PM

Responding to those who think Wall Streeters don't buy in Bed-Stuy... I live there and I know a few financial types who bought here. A train is great for going to Wall Street.

Posted by: guest at March 26, 2008 3:48 PM

People bought houses in marginal neighborhoods hoping they would go up in value. Now values are falling at a alarming rate. I know people look at sales price but, sales volume has fallen off a cliff. As soon the credit markets adjust themselves without Government intervention, the value of all assets class will fall. When Wall Street starts laying off people then, you know the greater economy is in bad shape. The sad thing is the writing is on the wall but, people will just ignore it. By then it will be too late.

The What

Someday this war is gonna end...

Posted by: guest at March 26, 2008 4:02 PM

Hey Brooklynlove, I will post this whole story here. This is a bombshell and I hope everyone reads this story. This outright manipulation of our financial system. This is ENRON to the thousand power.

New Century Bankruptcy Examiner Says KPMG Aided Fraud (Update3)

http://www.bloomberg.com/apps/news?pid=20601103&sid=aXebBOZ3eBjQ&refer=news

New Century ``engaged in a number of significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes,'' Missal wrote in the report. He said ``KPMG contributed to certain of these accounting and financial reporting deficiencies by enabling them to persist'' and in some cases ``precipitating'' a departure from ``applicable accounting standards.''

``This is really the embryo of the credit crisis,'' Missal said today in a phone interview. ``The theme of the report is how easily the loans were originated, how exceptions were made, how they used bad appraisals. There were no appropriate internal controls and KPMG failed to look at these things skeptically.''

This is a Oh My GOD moment! I think the gates of hell just opened up just a little bit. Everything is fine, I don't think so!

The What

Someday this war is gonna end...

Posted by: guest at March 26, 2008 7:36 PM

OK, I've been a real estate investor in Brooklyn for over 30 years, and this is the cold hard truth. Prices in Brooklyn are coming down, and they will be dropping considerably. The banks and lenders have done a total about face, and their credit policies have now eliminated huge numbers of potential borrowers by seriously tightening loan standards. Couple this with a huge rise in foreclosures, and the impact of the credit crisis on Wall Street, and the results are inevitable. We will be seeing price declines of 25% to 35% before this is all over. If you have any interest in buying Brooklyn real estate, just wait it out a year or two and you will save yourself a bundle.

Posted by: guest at March 29, 2008 12:22 PM