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December 4, 2008

'Across the Board' Hits in Brooklyn

bk-condo-1208.jpgIn Brooklyn, "condos took a hit pretty much across the board - Williamsburg, Greenpoint, Clinton Hill," Heskel adds. "A lot of developers...can't sell their units so they're panicking. Some are changing to rentals. They're choked up with construction loans. They can't sell the apartments and can't pay back the loan." — NY Post




Posted by Brownstoner at 10:15 AM | Comments (3)
Categories: Market

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So why is Mr. Palin trying to build a 40-storey tower in Greenpoint? He must be related to that other starcrossed Palin.

Posted by: dittoburg at December 4, 2008 10:32 AM

I hear you can't get a mortgage without great comps. If 700 a foot sold low down in town and you want a 900 a foot upstairs, good luck....
new condo market dead.

Posted by: BK realestate veteran at December 4, 2008 11:02 AM

"...can't sell their units so they're panicking. Some are changing to rentals."

Rents are about to get whacked. This is bad for 2+ family brownstone comps and the cheaper-to-buy argument. Thank God I was able to convince my wife to start bottom-feeding for a 2BR/2BA condo-gone-rental rather than pull the trigger on a collapsing brownstone price tag.

A significant drop in rent may only be a temporary loss while a significant drop in a closed sale price is a permanent loss. Which one do you think they will be willing to suffer first (if they have a choice)? You've answered correctly, the former. Rent asks will fall faster than sale asks in the months going forward.

Posted by: 25 to 50 Percent Drop at December 4, 2008 2:03 PM

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