House of the Day: 449 Bergen Street
This two-family house at 449 Bergen Street in Park Slope hit the market last month asking $1,899,000 and just reduced earlier this week to $1,795,000. The three-story (sorta) house was renovated top-to-bottom in 2002, the year before the current owner bought it for $595,000. Seems like a pretty stiff mark-up to us. 449 Bergen Street…
This two-family house at 449 Bergen Street in Park Slope hit the market last month asking $1,899,000 and just reduced earlier this week to $1,795,000. The three-story (sorta) house was renovated top-to-bottom in 2002, the year before the current owner bought it for $595,000. Seems like a pretty stiff mark-up to us.
449 Bergen Street [Aguayo & Huebener] GMAP P*Shark
Where are all those geniuses that don’t belive housing prices will not come down more than half in New Yorrk City?learly the seller is testing the market to see if any fish nibble at the bait. He should know that the drying up of credit has also dried up the pool of fools. Any home price after 2003 is purely speculative and overinflated. If someone does buy at the current asking price he/she will probably be welcomed to the neighborhood as an idiot.
Oops, the monthly mortgage payment is $2030 in the first example, not $2096.
“No news here, but we are in the beginning stages of an enormous (unprecedented) economic downturn highlighted by an eventual spike in inflation. Likely in a massive bear market rally.”
I agree with this. We’re going to have economic stagnation for a decade and inflation.
For Miss Muffet, who is buying in an expensive area with mostly cash, it makes sense to wait. In my case, it may make sense to buy. Prices are 40 percent off peak and interest rates are low.
BHO, every calculation I do shows us saving money if we buy now.
Example: House is $425,000 now. With 10 percent down and interest rates at 4.9 percent, the monthly mortgage payment is $2096.
If the interest rate goes up to 7.0 (reasonable — this was the rate in July ’08) and the price comes down to $350,000, it is slightly more expensive at $2096 a month.
If the interest rate goes up to 12.0 and the price comes down to $300,000, the monthly mortgage jumps to $2777.
We can’t afford that.
BHO, stop talking to yourself.
“BHO, no matter what you may say here, market timing is a question mark.”
And nothing I said negated that. There’s no date, time and temperature for when the market will bottom. But I’ll know it when I see it (NY Case-Shiller Index starts showing positive change from previous year). Good things come to those who wait.
“The financial services industry outgrew every comparable high-end profession.”
Bingo! What are we left with? The comparable high-end professions (hello doctors!). Massive void in price support. Fuggedaboutit!
***Bid half off peak comps***
The idea that this piece of property is intrinsically worth even a tick over a million dollars is guesswork at best. The rental will pull in modest income w/ prices under pressure.
On the upside, per StreetEasy, we are ALREADY getting a nice discount on a rarely available brownstone–A&H of course initially listed it for $1.9M last month! A Bargain!!
No news here, but we are in the beginning stages of an enormous (unprecedented) economic downturn highlighted by an eventual spike in inflation. Likely in a massive bear market rally.
The financial services industry outgrew every comparable high-end profession. Drove RE prices more than any single factor. It is going through massive consolidation. I am lucky enough to have the wherewithal to purchase a reasonably priced brownstone (such a thing?). But I do not know a single person otherwise who does, and 1/2 the people I know are unemployed.
City tax rolls about to get slammed—takes a year for the Wall st effect to sink in. Less svcs, higher taxes, more homelessness, more crime. Love the city, but this will likely happen.
Yes, someone will purchase this place at close to a mil. They will fall for the trap set by a WILD overpricing. Greater fool theory.
This market is just ridiculous. Catch a falling knife at your own peril.
**Objects in rear view mirror are closer than they appear.**
“321 is generally considered one of the top schools in the city — probably because every parent whose child goes there complains about overcrowding, bad attitudes in the main office, and lack of interactionw ith the teachers.”
Okay, that made me laugh. It is true, there is no complainer like a parent with a kid in a top-rated public school.
BHO, no matter what you may say here, market timing is a question mark. The AMT is as sure as death.
282 seems like a good school that has been getting better.
321 is generally considered one of the top schools in the city — probably because every parent whose child goes there complains about overcrowding, bad attitudes in the main office, and lack of interactionw ith the teachers.
I don’t think the place will go for under a million either.
The block is a bit noisy and all, but it is not like it is on Flatbush, and the location is super convenient.
Oh, and I think maybe I’ll try to give that Fish and Sip place a chance. Maybe this weekend I’ll try to get something there.