As Condo Sales Languish, Builders Slam 421-a Reform
The Sun has a couple of articles this morning that, taken together, seem slightly contradictory. First off, Mike Stoler writes about how condo sales at many new Brooklyn developments have seen better days. (AKA condo glut.) Developers say that many for-sale condos in Downtown, Dumbo and the Burg are seeing price cuts of 15 to…
The Sun has a couple of articles this morning that, taken together, seem slightly contradictory. First off, Mike Stoler writes about how condo sales at many new Brooklyn developments have seen better days. (AKA condo glut.) Developers say that many for-sale condos in Downtown, Dumbo and the Burg are seeing price cuts of 15 to 20 percent and that many Brooklyn builders are considering turning their projects rental. One unsourced industry leader has this to say: There has been massive overbuilding in the entire borough of Brooklyn. It is like the Wild West, and if you don’t control growth, then at some point it’s going to get out of hand.” The other story in the paper is about how developers are psyched that in December the City Council is going to review the changes to the 421-a program, which, effective in July, requires that projects in many sections of the city (including the Slope, Prospect Heights, and Bushwick) include 20 percent affordable housing in order to get 421-a tax abatements. In other words, while sales are at a standstill at many developments (a whole lot of which benefited from 421-a), developers want 421-a tax breaks reinstated in order to incentivize the construction of more market-rate housing. Yes, 421-a repeal would mean cost-savings for buyers in the future, but right now those buyers aren’t keen on plunking down money for all the condos we already have. So the question is, does is make sense to incentivize the creation of new housing at a time when the existing pipeline isn’t being absorbed? Or is there still plenty of need and demand for new housing, just not at these prices?
The Divide Between Manhattan, Other Boroughs [NY Sun]
Tax Abatement Debate To Be Revived [NY Sun]
he hasn’t been right about anything else. why now?
he’s been predicting this shit for 5 years.
the end of the world still has not come.
I can’t even make it through an entire What comment because he’s so unregulated, but what if he’s actually right?
“you are more of an idiot than i thought, the what.”
Ok then, why The What is a idiot. Please come up with something! The FED chairman said in front of the Senate” I expect there will be some failures” of small, regional banks invested in real estate”,.. What the fuck is wrong with out! Oh I see, you POS is going down in value and you are a little emotional. I styling on you. Boo Hoo.
The What LMMFAO
Someday this war is gonna end…
BTW I’m at a good place now, I know the end of this war is near.
“”Among the largest banks, the capital ratios remain good and I don’t anticipate any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.” The comments came during the question-and-answer session with the Senate.
GAME OVER!!!!!!!
The What”
There are people on this site who are actually ASKING this moron for advice!
you are more of an idiot than i thought, the what.
“How is that game over, 12:14??
The big banks are fine, some of the crappy smaller ones are not.
How is that shocking or disturbing?
Do you know what CAPITALISM is????”
OK Dumb fuck. Citi, WAMU and Wacova is INSOLVENT!!!!!!! The took massive write-downs on this mortgage crap. Citi had to borrow money at 14%. When the chairman of the FED say in front of the Senate “I expect there will be some failures” of small, regional banks invested in real estate”, you can bet there are some Big Boys in trouble. Remember Northern Rock? The British taxpayer had to eat billions of dollars! Bank runs here we come.
The What
Someday this war is gonna end….
How is that game over, 12:14??
The big banks are fine, some of the crappy smaller ones are not.
How is that shocking or disturbing?
Do you know what CAPITALISM is????
Oh BTW! Check out this comment for Benanke!
Bernanke’s Bank Comment Rattles Stocks
http://www.cnbc.com/id/23389338/site/14081545?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
“I expect there will be some failures” of small, regional banks invested in real estate, Bernanke told the Senate Banking Committee in his second day of congressional testimony. “Among the largest banks, the capital ratios remain good and I don’t anticipate any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.” The comments came during the question-and-answer session with the Senate.
GAME OVER!!!!!!!
The What
Someday this war is gonna end…
The bmw example is a rather good one, polemicist.
Other areas like Miami, Las Vegas, Phoenix, San Diego…it wouldn’t matter if prices dropped another 50% because there simply aren’t any buyers left for the properties.
Just read today that there are currently 25,000 condos on the market in Miami with 18,000 more on the way in the next year.
At the height of the market, they were selling 10,000 a year so even in the best of markets, they have a 3 year supply of homes.
Really scary.
This is NOT the case in NYC.
If you dropped the price on some of this crap, it would sell in a heartbeat. There is still an icredible demand for properties in New York, as long as they are at the “Right” price.
I actually think developers are realizing this and are trying to get rid of product as fast as possible.
It’s the reason why prices are not coming down very much, if at all. Because historically, inventory is still extremely low.