Signs of Life for Williamsburg Condos?

Proof from the Sunday Times that pricing, not a lack of buyers, is what's holding the market back: After getting no traction at the NV at 101 North 5th Street in Williamsburg last fall, the Developers Group began getting serious about cutting prices in January and, voila, 17 out of 40 units are now in contract. Similarly, at the nearby Rialto, ten of 31 units have been signed for in the last two months. Signs of a pick-up in the 'Burg market or exceptions to the rule?

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Two things to keep in mind, Mr. B.:
1. Seasonality. Spring is the time apartments are going to move if they move at all. Comparing sales between spring and fall is comparing apples and oranges. How do overall sales compare with spring 2008 or 2007?
2. Contracts are not sales. Now, especially, many contracts do not end up as sales as financing falls through or buyers back out due to further price cuts in comparable properties, job loss, etc.

Posted by: kvnbklyn at May 4, 2009 11:00 AM

kvn: #2 is a serious point.. if a building has contracts signed on say 45% of the units.. the buyers will have trouble getting mortgages.
In fact, now i believe lenders want to see 70% sold.. especially if you want FHA rates!
I believe that the smaller buildings (20 or less units) will sell out while the larger ones are forced into Nondo-dome.

Also what avg. price/sq ft. is the NV and Rialto now? was some crazy 800s and 700s before..

Posted by: hazenyc at May 4, 2009 11:08 AM

Big problem is banks - takes way too long to get commitment, credit scores have to be too high, paperwork demands heaviest ever. Get loans, that is problem, not buyers, at least under 700k.

Posted by: BK realestate veteran at May 4, 2009 11:11 AM

seems like someone/some business will step in to fill this void in financing. maybe developers will do something to offer the lending. there's got to be money to be made here.

although, is it so hard to believe that people have credit scores over 700?

Posted by: wine lover at May 4, 2009 11:30 AM

if things are overpriced no one will buy or finance. who wants to be the sucker left holding the bag?

Posted by: travy at May 4, 2009 11:37 AM

There is a big gap between asking prices and prices that will sell. Sellers are going to bridge this gap. The ones that do so first will sell now and move on with their lives. Waiting for buyers to bridge the gap - i.e. buy at bubble prices - is a fool's errand.

Here's a good example of a seller who is going to have to eat a big bowl full of reality sooner or later. http://corcoran.com/property/listing.aspx?Region=NYC&ListingID=1513153 And this is reduced from $1.245!! What is the point of even stopping at this price level? Just reduce to $750k, sell the damn thing, and move on with your life.

Posted by: lechacal at May 4, 2009 11:57 AM

Did they reject your bid, lechacal?

Posted by: tonewlots at May 4, 2009 12:49 PM

tonewlots: is that really the best snark you could muster? Even tired old saws like "bitter renter" or "your rent is due" would be more respectable. Your snarking skills get an F minus. Go back to snarkergarten.

Based on location alone this isn't a property I would even consider. It's between 4th and 5th (I have a big X through that block on my personal search map), on a decrepit block that includes a big vacant lot on the corner of 4th. I saw this listing on natefind.com this morning and decided to take a slightly different route to the subway (down sackett rather than union) to see the location. nfw. To start out asking almost a million and a quarter for this place (now reduced to $1.1) is delusional. Maybe someone catches this falling knife at a higher price point, but I put the value of this property at between $700k and $800k. If that.

Posted by: lechacal at May 4, 2009 1:34 PM

To be fair, it appears that this is one of four units in the building that are currently on the market (out of a total of 38 units, so 10% of the building is currently on the market) and I really shouldn't single this one out for delusional pricing. At least 3 out of 4 are priced at completely delusional levels, with a fourth just priced too high.

Posted by: lechacal at May 4, 2009 1:46 PM

"Signs of a pick-up in the 'Burg market or exceptions to the rule?"

SIGNS [firm emphasis] of a pick-up (of volume, not prices - they will plummet). Acceptance of highest bids (taking of medicine).

You know the market is in a "bottom-less" freefall when 43% in-contract and 32% in-contract pops off the bubbly.

Glass still 90% empty.

***Bid half off peak comps***

Posted by: Brownstones Half Off at May 4, 2009 2:28 PM

"Your snarking skills get an F minus. Go back to snarkergarten."

Medic! Man down in New Lots!

***Bid half off peak comps***

Posted by: Brownstones Half Off at May 4, 2009 2:30 PM

"if a building has contracts signed on say 45% of the units.. the buyers will have trouble getting mortgages"

lechacal! Get that patent pending on your group bid technique!

***Bid half off peak comps***

Posted by: Brownstones Half Off at May 4, 2009 2:33 PM

This building has 40 units, but Streeteasy show 14 available for sale and 32 sold (not just listings, but actually sold.)
are some of the listings resales?
Are they counting parking spaces?

Posted by: Maly at November 17, 2009 1:26 PM

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May 4, 2009

Signs of Life for Williamsburg Condos?

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