March 16, 2006 — Townhouse sales in Brooklyn surged during the second half of 2005 as a strong economy and low interest rates attracted buyers, according to a report released today by Halstead Properties. Yet Halsted Chief Economist Gregory Heym said the market may change as supply begins to catch up with demand. The balance has shifted and buyers have more options, he said, noting that the borough now has more than 200,000 townhouses. Inventory has loosened and there are more apartments on the market, but the pace is slowing down from a record.

During the second half of 2005, townhouse prices in Greenpoint and Williamsburg rose fastest, with the average reaching $751,095, up 58% from a year earlier, partly because the average size of the homes grew. On a per-square-foot basis, prices were up 21%. Other areas in Brooklyn also saw solid gains during the second half of 2005: prices in Bedford Stuyvesant, Clinton Hill and Fort Greene rose 39%, to an average $594,481; townhouses in Boerum Hill, Brooklyn Heights, Carroll Gardens, Cobble Hill and Park Slope sold for an average $1.5 million, up 25%; and prices in Bay Ridge, Bensonhurst, and Dyker Heights climbed 22%, to an average $726,965.
BK Townhouse Prices May Slow [Crain’s]


What's Your Take? Leave a Comment

  1. Short little moronic article. Talks about rising townhouse prices.
    Then says there are now more than 200,000 townhouses.
    gee – I can remember back in my youth there were only 199,500 -amazing how they are springo up allover).
    Then says the number of apartments for sale is increasing. Yeah- so are we talking about apentments or townhouses?
    Sounds to me the author has no clue – and does not know NYC housing stock.

  2. And Matt, you have to ask yourself this question: In 10, 15, 20 years, how much do you think these bstones will be worth, assuming decent nabe, location, etc.

    Do you think today’s purchase price will seem “overpriced” in 15 years? Because unlike co-ops and condos, bstone purchasers are in it for the long-haul. In many cases, their adult kids will move into half the bldg, and then inherit it, so the bldg stays in the family for multiple generations. In 50 years, do you think somebody’s kid is going to be ever so thankful their parents purchased an “overpriced” bstone in 2006.

    Yeh, I do think so.

  3. Matt, I don’t know where you get the idea that people who buy bstones have huge mortgages. Most people I know, including myself have relatively low loan-to-value. And a lot of recent buyers are putting big dollars down from bonuses or from parents. And if anything, the virtually tax-free rental income is a good way to put some extra money away.

    I’d say, its not the mortgages that are the killer, it’s the cost of maintenance, utilities, and upkeep. A lot of the maint and upkeep can be deferred during lean times – not for forever, but for a number of yrs.