Anyone out there buying houses?
Is anyone out there buying houses in Brooklyn? We have had our house on the market in Park Slope for almost 3 months now with A LOT of interest and a few offers(one offer which was low, but we were happy with almost went to contract but financing was the issue). But it seems to…
Is anyone out there buying houses in Brooklyn?
We have had our house on the market in Park Slope for almost 3 months now with A LOT of interest and a few offers(one offer which was low, but we were happy with almost went to contract but financing was the issue). But it seems to me the “buyers” who are out there either are scared, not really serious or are hoping to receive major discounts
However when I check around, I notice that none of the houses in prime nabes are selling or “flying off the shelves” and the only houses selling are the old junkers going for cheap!
Just posting to get some insight from other sellers and buyers and armchair quarterbacks….
It’s a very frustrating time
Thanks BKNY – I know there are many people out there who don’t have to sell – we are sorta a mix of wanting and having to sell.
Sure, we can keep it – but at what cost? We pretty much work at jobs we hate to have this house in a swanky nabe and with no money in our pockets. We get by(barely, but it ain’t livin’
I don’t think any of us can really judge what the market will look like in 6 months or a 1 -2 years from now. I think if the job market and consumer confidence/spending don’t increase we will have major issues in real estate – that’s for sure
moneyfornothing – that’s a very interesting concept. with that perspective, i could see it not making sense to wait. the house i want to sell, i don’t currently live in and i did not buy it at the height of the market, so truly even at these prices i would be making a nice profit. i am still willing to ‘wait & see’. i know this may mean YEARS but i think it will benefit me in the long run. if i needed to sell for other reasons or wanted to move i would definetly heed your advise.
This is the calm before the storm (like the calm that came before the frenzy, circa 90’s). Capitulation will restore volume when it comes. The majority of sellers out there will hold out for much less later and regret it. They will chase comps into the ground (intrinsic value way down there there there somewhere somewhere somewhere).
***Bid half off peak comps***
To Quote one of the numerous (and often ignorable) financial strategists:
“The worst is yet to come with consumers and banks,” he says. “This country is going into a 10-year decline. Living standards will never be the same.”
http://finance.yahoo.com/tech-ticker/article/248398/%22The-Worst-Is-Yet-to-Come%22-If-You%27re-Not-Petrified-You%27re-Not-Paying-Attention?tickers=^DJI,^GSPC,DDR,XLF,GM,RWR?sec=topStories&pos=9&asset=&ccode=
for those “waiting to sell,” which I totally understand, my macroeconomic perspective would be that this country has not dealt with inflation of any real kind for about 20 years since Volker broke it in 83.
The economic environment we’re in now is a game changer. What the gov’t is doing to prevent an all-out collapse is going to drive interest rates through the rough, lowering the value of homes. People are going to save more and spend less (finally). This does not strengthen home prices.
We have gotten way to used to an economy that sustained hgh growth and low inflation for a long time. It’s idyllic for economic activity.
Too many forget what a lost decade like the 70’s can mean to equities, real estate, and ultimately society.
It all bears on home prices ultimately.
gemini – we want to sell also. we took our property off of the market b/c of the current environment and we are not desperate to sell. we can hold on for a few years. that is not ideal but it is the reality. i don’t know your current situation so this advise might be mute but i would wait and hold. now is just not the time if you really don’t need to sell.
Thanks all
It’s interesting b/c I beleive pre-lehman and even a bit past Lehman into November we saw some decent Home Sales,but since Jan/Feb I am not witnessing the same sale activity.
MoneyForNothing – agreed on many of your points
I priced the house well on purpose and still received an offer that was 18% off my asking price – which we accepted and even gave some credits after the inspection.
I also had an offer that I was like “Um are you friggin kiddin me” – but I digress!
I also agree it’s probably never in the best interest of the seller to just slice off $25K on a 1.7mil house. Those small price chops just show any buyer that you still aren’t sure what the house price really should be.
Mopar – thanks – am in PS, have a 2 fam house and I agree on many of your points the houses that are available have been sitting for 6-9 months and then I notice they might go into contract – it’s a bit scary truthfully.
Any Sellers out there want to weigh in on their experience thus far?
My wife and I are serious buyers for a townhosue. We have 20% down for any reasonable place, 780+ credit ratings, etc. Don;t know your place obviously, but here’s my take.
I’ve been bearish on housing for years b/c I saw what the Fed was doing, and here we are. NY is way behind the national curve in letdown. Buyers seem to think that if they bought a place 5 years ago, they are entitled to a 40 or 50% increase, when in all honesty, most places should probably sell at close to value in 2002-2004 levels.
Why? B/C the run-up was almost entirely fueled by invisible wealth, and the consumer’s balance sheet is WAY worse than it was back then. As are the prospects for growth in the economy. Wages will be flat, unemployment up.
This BTW leads to less tax revenue and less servvices, which make NYC a less desirable place (though I will never leave).
In the end, the buyer controls the price, not the seller. We know what prices for properties have been historically, so it’s easy to get a ssense of inherant value.
People are asking someone like myself, who avoided any debt and saved up a very large nest-egg specifically to buy a house to plunk down 300K as a down payment, which represents an enormous risk, when job projects are flat moving forward, and intrinsic value on properties is difficult at best.
I own my own business, my wife makes a decent living, and een w/ no debt and huge savings, we’re having a hard time justifying buying a 1.6M property that will deplete much of our savings and put us on the hook for a very large monthly payment, even with a rental in it (and rental prices are being pressured, so every broker that says you can get 2K in rental is being optimistic).
Many sellers make these patently absurd reductions on 1.6+ Million dollar properties, as if that will do anything to create activity. A 25K cut on a 1.8M home, and now an offer to cover the 11K mansion tax. C’mon. Buyers need to wake up to the reality of where the market is headed, and more importantly, who can get financing.
Even w/ mid 6-figures in cash in the bank, perfect credit, and no debt, b/c I own my own business (10 years running), even I may be turned down. So where are the buyers?
Offers of 20-30% below asking are the only option, which buyers find insulting. So their palces sit, and then they price cut with a thousand small slices and watch the market erode further while they avoid the inevitable.
So I’m a VERY serious buyer. Have a little girl and we’re running out of room. Dying to buy. But in all honesty, the value just ain’t out there.
It’s an interesting question. I look forward to hearing what others have to say.
The cheap, old junkers in Bushwick and Bed Stuy don’t seem to be selling very quickly either. Maybe three have sold in the last six months, and they were on the market for a year or more. Others have also been on the market for a year or more and are still sitting there. Most everything seems to be in terrible shape, and little new seems to come on the market. There’s not much for sale (well, not many two families. Plenty of three and up.) If anyone ever wanted to buy a commercial building, you can buy them for next to nothing.
I notice on this board that whenever anyone says they just bought a house, it always seems to be in Park Slope, Bed Stuy, or Bushwick. Of course, it’s hardly a scientific sample.