« PLG House Tour Recap Co-op of the Day: 328 Clinton Avenue, #3 »

June 2, 2009

Last Week's Biggest Sales

big%20sales%20june%202.jpg

1.BROOKLYN HEIGHTS $2,900,000
72 Hicks Street GMAP (left)
As covered last week, the 25-foot, wood-frame house was first listed for $4,995,000 and was asking $3,750,000 when it was a House of the Day last November. Entered into contract on 3/20/09; closed on 5/14/09; deed recorded on 5/28/09.

2. MIDWOOD $2,085,376
1189 Ocean Parkway, Unit 4B GMAP (right)
This is the third big closing in this 13-unit Midwood condo in as many weeks. Size of units unknown, but a fun fact from StreetEasy is that the average sales price in the building is $1,904,000. Entered into contract on 7/26/07; closed on 5/6/09; deed recorded on 5/26/09.

3. FORT GREENE $1,720,000
31 South Oxford Street GMAP
This 3,360-sf, two-family was asking $1,969,000 when it was an Open House Pick last August. Entered into contract on 10/15/08; closed on 5/19/09; deed recorded on 5/28/09.

4. COLUMBIA STREET WATERFRONT DISTRICT $1,295,000
132 Degraw Street GMAP
This 3,300-sf, four-family was asking $1,325,000 when it was on the market last summer. Entered into contract on 10/14/08; closed on 5/19/09; deed recorded on 5/28/09.

5. COLUMBIA STREET WATERFRONT DISTRICT $1,200,000
136 Degraw Street GMAP
Same sellers as for 132 Degraw. The four-family was asking $1,325,000 when it was on the market last summer, according to StreetEasy. Entered into contract on 11/24/08; closed on 4/28/09; deed recorded on 5/28/09.

5. PARK SLOPE $1,200,000
133 Sterling Place, Unit 4F GMAP
A 1,711-sf, 3-bedroom in The Vermeil condo, according to StreetEasy. It was first listed for $1,650,000 in early '07. Sale included a parking spot. Entered into contract on 4/3/09; closed on 5/18/09; deed recorded on 5/28/09.

1189 Ocean Parkway photo from EveryScape; 72 Hicks photo from Property Shark.

Trackback Pings

TrackBack URL for this entry:
http://www.brownstoner.com/mte/mt-tb.cgi/10004

Comments

All in contract before the move in the stock market. If team bear is going to rely on that lame "pre-Lehman" defense, you'd better be prepared for an avalanche of spending from the "post-March-Market low" phenomenon.

Some however (cornerbodega, et al) will always be left out.

Posted by: daveinbedstuy at June 2, 2009 11:38 AM

Notice the increase for the Northeast in the last paragraph. Maybe it's all the gays going out to celebrate their newfound ability to marry in this part of the country? ;)

***

June 2 (Bloomberg) -- The number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, more than forecast and the fourth increase in five months, as lower prices attracted buyers.

The gain in the index of signed purchase agreements, or pending home resales, was the biggest in more than seven years and followed a 3.2 percent increase in March, the National Association of Realtors said today in Washington. The April reading was up 3.2 percent from the same month a year earlier.

Three of four regions saw an increase in pending sales, today’s report showed, led by a 33 percent jump in the Northeast and a 9.8 percent gain in the Midwest. Pending resales rose 1.8 percent in the West and fell 0.2 percent in the South.

Posted by: 11217 at June 2, 2009 11:42 AM

LOL, 11217...that gay dollar is getting more and more important to the economy. I spent a bunch of them in 2007 in the ghetto!!! :)

Posted by: daveinbedstuy at June 2, 2009 11:46 AM

Hey...remember this place...? Went into contract on May 13th according to Streeteasy...wonder how much it sold for.

http://www.corcoran.com/property/listing.aspx?Region=NYC&listingid=1497274

Posted by: 11217 at June 2, 2009 11:49 AM

Sorry, I wonder how much it will hopefully sell for I should say...assuming they go to close...

Posted by: 11217 at June 2, 2009 11:52 AM

Does this metric have a version where the foreclosure ppties are excluded? Foreclosure or not, this is a good sign. But it would be interesting to see what it is excluding the foreclosure ppties

Posted by: more4less at June 2, 2009 12:13 PM

Wow - I can't belive the 132 4 family Degraw Street House even got 1.295 - that's amazing - the sellers made out like bandits b/c the pic of the house on Trulia is "ok"!

Posted by: gemini10 at June 2, 2009 12:19 PM

11217 - I remember that place and I think I really loved it and someone kept complaining how cheap it was to have that "Home Depot" stair railing - cest la vie
ha!

Posted by: gemini10 at June 2, 2009 12:24 PM

Don't kill me for all the PS listings, but I'm just looking at Streeteasy today and noticed another big listing went to contract....I remember this might have been a house of the day at some point perhaps, or maybe an open house pick...

http://www.streeteasy.com/nyc/sale/384703-condo-615-3rd-street-park-slope-brooklyn

Nice to see some of these high priced houses going to contract, but will be curious to see what they sell for.

Posted by: 11217 at June 2, 2009 12:25 PM

holey moley, 11217...that 3rd street house is amazing!!

Posted by: new2hood at June 2, 2009 12:32 PM

11217, I'm pretty sure that was a house of the day at some point. I seem to recall banter about some of the less "traditional" (shall we say) colours throughout the home. However, the place definitely has great bones and a stellar location.

Posted by: Biff Champion at June 2, 2009 12:33 PM

This is my last one...I promise! Also went to contract on May 13th....

http://www.streeteasy.com/nyc/sale/394787-multi-516-8th-street-park-slope-brooklyn

Posted by: 11217 at June 2, 2009 12:33 PM

interesting - I remember we all commented on that property b/c of the abuse of pink!
seems many of the higher priced properties that came on in the fall have gone into contract - good sign

Posted by: gemini10 at June 2, 2009 12:35 PM

how do you reconcile 700/foot vermeil with 1100/ft in the meieir building? don't get it.

Posted by: joe_the_bummer at June 2, 2009 12:35 PM

Ha, yes Biff. Now I recall that too.

You know what...I don't even mind that hot pink stairway. (No jokes, please).

I wouldn't want it in my home necessarily, but it doesn't look half bad in that photo to me.

I think it'll be really interesting to see what all these "close" for...

Posted by: 11217 at June 2, 2009 12:35 PM

11217, did you spot any ppties that's within reach of the more common folks (ie south of 1.5M)?

these uber nice ones you mentioned are for the very very deep pocket buyers who are driven more by need than necessarily affordability. I'm assuming more of us on the blog are not that rich hence action on ppties south of 1.5M is more relevant. So in other words, please post another if you spot one south of 1.5M

Posted by: more4less at June 2, 2009 12:42 PM

I'm not sure I understand the question, Joe...

Do you mean, why the large price difference? For one...many of the high priced Meier units were bought during the height of the bubble and have only recently closed.

Vermeil priced their units WAY too high from the get go and probably scared a lot of people away. They've just been sitting there on the market and as has been discussed here before, the developer seems to really be cutting corners if the outside area of the building is any representation of the inside. The sidewalks all around the building are STILL totally broken, cracked, the lighting fixtures outside are all busted, etc etc. Those may seem like minor issues, but they aren't when you're spending so much on what is supposed to be a new apartment. The exterior itself does look pretty well done, but the details have been neglected bigtime.

You also have to factor in the starchitect factor in the Meier building...

Posted by: 11217 at June 2, 2009 12:44 PM

More4less:

There are tons more below 1.5 million...it seems that quite a few properties have gone to contract in the last month or so. Not surprising since it's prime selling season.

I only linked these because it seemed as though the high end was nearly dead for the winter, but was just curious to see some of the 3 million ones go to contract lately.

As for the under 1.5 million, just go to streeteasy, plug in the zip code you want to look at and click on sales and you'll see which ones have gone to contract so far...

Posted by: 11217 at June 2, 2009 12:47 PM

M4L - did you come look at my house ;)
as someone selling way under the 1.5mil reach - many of these houses are sitting for months!
LOTS of interest low to no triggers

Posted by: gemini10 at June 2, 2009 12:53 PM

g10, if you have to sell to me then the market bottom is here or just passed it. I'm like the vulture circling in the sky so if I'm flying down, it's bad news.

Posted by: more4less at June 2, 2009 12:58 PM

11217 -- yeah that's what I meant. there were 3 or 4 sales (new contracts) in feb/march in the meier building. I was questioning their legitimacy just because 1100/foot seemed so out of line. The best explanation I could come up with was that the developer gave up a few dollars after a long closing period, and then changed the reported contract date to reflect the "new contract". In my mind this would be unethical, but I have no evidence that it actually happened. The vermeil seems like a decent comp, aside from the differences you mention. I think this sale (700/ft) sounds just about right for the market. and then when you throw in the free parking spot, what's that worth, 80K or so? Nice job buyer...

Posted by: joe_the_bummer at June 2, 2009 12:58 PM

I agree, Joe...I think this sounds like a fair price. 1700 sf is huge, and with the parking spot, doesn't sound bad at all.

Posted by: 11217 at June 2, 2009 1:04 PM

M4L- ok please fly on by then!
ha

anyway - healthy prices for these properties indeed. Wonder what team Bear will say?

Posted by: gemini10 at June 2, 2009 1:07 PM

Joe -
Don't know if you saw it, but a week or two after the Meier discussion there were sales in a condo conversion which one of the buyers had been blogging about. The "contract" dates came across as '09 despite the clear blogging evidence that the deal was struck long ago.
Obviously this doesn't say anything about the Meier building specifically, just that the practice that was suspected does seem to go on.

Posted by: Ledbury at June 2, 2009 1:15 PM

ledbury I missed that one -- I went on vacation and then I had to [gasp] work all day for a while. interesting...gotta love the blogs.

Posted by: joe_the_bummer at June 2, 2009 1:24 PM

Go Columbia and Midwood! Something special about Columbia? Is it that cobblestone Soho-ish block around the corner and Alma? Oh, the Manhattan skyline view (most high end Brooklyn buyers gotta be looking in that direction lately)?

Midwood looks synogogy, probably with buyers trapped into the pre-construction-hell-no-you-can't-have-your-deposit-back scenario (2007? Are you serious?). Or not.

Heights, Slope and Fort sellers blinked. For the usual hoods that aint Syrian or don't have front-row FiDi views, asking prices are now begging prices. 'Oh please oh please oh please - just gimme just one more mil'.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 2, 2009 1:27 PM

Not trying to start a bear vs bull discussion here (in fact, I will be kicking myself if the result is 50 posts of back and forth - the bottom is here... no, its not here, we still have forever to fall).

If the housing starts are up, it is likely a combination of two things - the low interest rates this spring and the fact that prices have come down somewhat.

So, what happens when the government prints all this money, puts it in circulation and we get inflation but also higher interest rates. The inflation presumably should help home prices, but higher interest rates hurt home prices.

Anyone remember the environment in the 1970s and early 80s? Which won out - inflation or high interest rates?

As someone on the sidelines today, my gut tells me to take advantage of low interest rates and the specter of inflation today, but if the result will be 10-20% interest rates in five years, that jump in rates could wipe out any equity built up as people will have to discount high borrowing costs.

Any thoughts?

Posted by: bkhabitant at June 2, 2009 1:31 PM

bkhab, you misinterpretted my post. I was saying I'll go in when I think the bottom is here or just passed. fact I'm still circling around in the sky, I don't believe the bottom is here yet. I have no idea what level the bottom will be or when it'll be reached. I'm simply waiting for prices to go up - I'll use that as an indication that the bottom might have just passed.

Posted by: more4less at June 2, 2009 1:39 PM

Re: 11217 at June 2, 2009 11:42 AM

The northeast is a big ole blanket. How much of that "pent up demand" can be attributed to Brooklyn? How much have prices fallen in this region outside NYC?

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 2, 2009 1:44 PM

Bkhabitant,
I am in the same situation and have similar views to yours. So far my decision has been not to buy a property but to invest in other more fungible inflation linked assets.

Posted by: etson at June 2, 2009 1:45 PM

"Any thoughts?"

Brokers/sellers/developers create a false sense of urgency through fear of higher borrowing costs with total disregard for the fundamental price correction that will inevitably ensue. The monthly payment effect cancels itself out. More expensive money, cheaper price. I don't care if borrowing costs go up to 12%. Prices will automatically correct in compound to the correction already underway. Hell, interest rates were going down at one point in the face of falling values. Raise 'em and the broker/seller/developer community will be faced with a plummeting pool of buyers at their begging price. More downward price pressure.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 2, 2009 1:55 PM

Etson, we're on the same page. That has been my strategy as well - oil, gold, short-Treasury ETFs. I am with you.

Posted by: bkhabitant at June 2, 2009 2:02 PM

re lower priced places in contract - i am curious to see how the widget went with this if it closes:
http://www.streeteasy.com/nyc/sale/
394596-townhouse-93-2nd-street-carroll-gardens-brooklyn

Posted by: tribe at June 2, 2009 2:02 PM

M4L, I think that is a reasonable strategy - when asked how he made so much money, a famous investor once said (blankign on who right now), "I bought a little too late and sold a little too early." It is a reasonable strategy to let the market tell you when the bottom has been achieved. My post was not in relation to yours by the way.

Posted by: bkhabitant at June 2, 2009 2:04 PM

> "Something special about Columbia?"

Degraw St is within the PS 29 school district. Equivalent places in Cobble Hill on the other side of the BQE are still fetching upwards of $2M.

Posted by: Smudge at June 2, 2009 2:07 PM

I have some thoughts bk -- a one percentage point higher rate equates to about a 20% higher home price. If you believe that rate increases reflect inflation expectations, then theoretically people will have more money from their inflated incomes to buy your house, so it's a wash.

my thoughts: 1 -- you want to be paying back a fixed rate loan during inflationary times. 2. however, if the higher rates are not due to inflation expectations, but actual credit concerns, then the top part doesn't hold true -- you could actually have deflation due to continued credit losses. 3 -- if you miss the low rates, you can always re-finance if they come down in the future, but there is no way to re-negotiate the actual purchase price. My attitude is that the financing question should be left out -- why buy a depreciating asset for any reason, let alone pay interest to do it -- you're better off renting.
4. a spike in rates would wipe out a lot of prime ARM borrowers and cause another wave of defaults. It would be a total disaster for the government, and I would expect them to do everything possible to avoid it. In fact, Geithner is in China now to convince them that we won't allow it...

So basically I'm saying that I think jumping in right now for an interest rate play is just getting too cute. you are still leveraging yourself up bigtime (5:1) on the most expensive asset you might ever buy. Team bear has a seat open if you want.

Posted by: joe_the_bummer at June 2, 2009 2:17 PM

Massive chop in Brooklyn Heights.

Big cut at the Vermeil in Park Slope.

Point, Team Bear.

Posted by: SnarkSlope at June 2, 2009 2:18 PM

> "If team bear is going to rely on that lame "pre-Lehman" defense, you'd better be prepared for an avalanche of spending from the "post-March-Market low" phenomenon."

An "avalanche of spending" because the S&P is now 40% off its high? Seriously?

Posted by: Smudge at June 2, 2009 2:22 PM

"Massive chop in Brooklyn Heights.

Big cut at the Vermeil in Park Slope.

Point, Team Bear."

All true, and looking like reality for a while to come.

Posted by: wasder at June 2, 2009 2:34 PM

If you were to tell someone 10-15 years ago that 1.2 million for a 3 bedroom in Park Slope was considered team bear, I think they'd piss themselves.

Posted by: 11217 at June 2, 2009 2:58 PM

Smudge, don't be an idiot. The market bottomed in March and is up strong. If you're not on board making money then too bad. There's been a lot of money made off the bottom.

Posted by: daveinbedstuy at June 2, 2009 3:14 PM

DIBS, don't be a dick. You really think the average person has come out ahead overall because of a rally in the last few months? Most people's investments have still taken a big hit.

Posted by: Smudge at June 2, 2009 3:23 PM

Yes, they have taken a big hit but there's a lot more money in the system and stock prices are up 25-45% off of the bottom and that's making a lot of people more comfortable.

Secondly, we're not talking about the average person if we're looking at $1MM + homes in Brooklyn.

Posted by: daveinbedstuy at June 2, 2009 3:32 PM

That means we're not talking about you, DIBS. Stop posing.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 2, 2009 3:44 PM

I agree that the Meier is high at 1100/sft for some units (maybe not some of the penthouse ones though. But comparing apples to oranges with Vermeil which is not even a doorman/gym/highrise type building... Plus, there was a post a few weeks back about price cuts on Meier. If I were in the market and got a Meier for $750/sqft (I think one was priced like that), I'd buy it... if I could. But I really like that building.

Posted by: JENNYFROMTHEBLOCK at June 2, 2009 3:47 PM

Multiple residences here, BHO, a concept you couldn't begin to fathom.

Posted by: daveinbedstuy at June 2, 2009 3:47 PM

DIBS, are you referring to the equity markets (where I agree we have seen a bottom) or the Brooklyn housing market (where I would not agree with such a statement)?

The Vermeil closing doesn't surprise me and I think supports what I have been saying all along. The right price will sell. The Vermeil had stupidly high asking prices for a long time and the units haven't moved because of that. Maybe they are finally seeing what kind of per square foot price will get deals done in that building.

I would also note that the price is not really all that far from the market high. What is that, maybe 2005 pricing? It really doesn't take a huge adjustment to get a deal done. Sellers are slowly adjusting their expectations.
Asking top of the market prices isn't a real strategy right now. In a falling market, always, always price your property at tomorrow's price, not today's. Otherwise you will just chase the market down like they have done at the Vermeil.

Not to say this buyer will be able to resell for that price in the next few years. Prices are still falling. But this is still a willing buyer and a willing seller and a real transaction, and thus evidence of where the market is right now.

Posted by: lechacal at June 2, 2009 3:53 PM

Equity markets, lechacal, which, as you know, is one of the primary factors for people in the market for $1MM + homes.

Posted by: daveinbedstuy at June 2, 2009 3:58 PM

Am still waiting/requesting for actual (re)sales of newer condos that orig sold 2006-2007 as proof of decline or extent of decline in market prices.
I know DIB believes townhouses won't/haven't gone down as much but that is much harder to analyze.(never know how much renovation took place).

Posted by: Petebklyn at June 2, 2009 4:06 PM

Petebklyn: That will be very tough to find, as those who bought at the top of the market will be reluctant (or unable) to sell at a loss. Buyers who have owned for a while will not be constrained by the same psychology or financial issues. The best way to approach this is to look at psf selling prices year over year.

Posted by: lechacal at June 2, 2009 4:17 PM

I would gladly sell my place at a loss if I found something truly spectacular with all the bells and whistles for $1.0-1.2MM.

Posted by: daveinbedstuy at June 2, 2009 5:07 PM

I agree with Dibs. If you sell at a loss and buy at a discount, you are trading in the same currency and chances are your discount will exceed your loss.

Posted by: JENNYFROMTHEBLOCK at June 2, 2009 6:06 PM

I can relate to what Mr. Dibs wrote. We wouldn't be selling at a loss unless the economy collapsed (but no matter what, we'd be probably accept a couple of hundred thousand less than a two years ago; it goes without saying)...I wouldn't mind a new-fangled condo but don't know what it would be like to live with neighbors.

I just have to put in my two cents: I don't think the $1.72 for the house on South Oxford was all that bad. It may not be what it would have fetched a year and a half ago, but it sure is A LOT more than it would have been 15 years ago in real dollars.

Phew! After the new owners do all those little things to make the house "theirs", it will end up pushing the total price nearer the asking price. And what if they do a big renovation?

Posted by: BrooklynGreene at June 2, 2009 6:12 PM

JENNY: Yes, if you own your home outright. If you financed a drop in prices could affect your ability to roll over equity into down payment on the new purchase. Take a 20% drop in prices when you initially put 20% down: you have no more equity. If you don't have the funds for a second down payment, you can't buy again.

Posted by: lechacal at June 3, 2009 1:54 AM

"If you sell at a loss and buy at a discount, you are trading in the same currency and chances are your discount will exceed your loss."

Significantly more so if you sell, rent (money "thrown away" here is substantially less than that thrown away on depreciation) and THEN buy. But most people can't handle the stigma of such a lifestyle "downgrade" in status.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 3, 2009 9:38 AM

Sorry I missed this thread yesterday. I'll be very curious to see what impact, if any, the Dow surge has with respect to home prices. We know Case Schiller is delayed 2 months (and doesn't include many NYC property types). Will we see a bounce or a stabilization in the coming months now that people or feeling a bit more secure if not exactly wealthier?

Posted by: FatLenny at June 3, 2009 11:26 AM

« PLG House Tour Recap Co-op of the Day: 328 Clinton Avenue, #3 »

June 2, 2009

Last Week's Biggest Sales

Trackback Pings

Comments

Post a comment

Latest Restaurant Additions