Bed Stuy has been having a year or two of “record growth,” both in prices and volume of deals, said a story in real estate trade pub The Real Deal. Upward prices and lots of construction in the neighborhood “are signs that record growth could continue.” The story’s headline is “Betting on the Bed Stuy Boom.”
What is happening in Bed Stuy mirrors much of the rest of Brooklyn, where deals are setting new price records and the number of deals is rising.
While acknowledging Bed Stuy’s special architecture, a “wealth of highly detailed brownstones,” the story also mentioned “limestone row houses,” which do exist but are more typical of Crown Heights, and focused on condos, which at least for now make up a very small proportion of the housing in the area. As an example of Bed Stuy’s record setting prices, the article cited “condos that top $1 million” (a record set in June 2013) rather than row houses that cost $3 million (last week).
The story spoke with five real estate agents, all of whom said condo prices — now $500 to $700 a square foot — have nowhere to go but up. They also said a floor-through in a 20 by 45 foot building will run about $1,900 a month and two-bedroom apartments are now going for just under $2,400 a month. Prices of typical townhouses were in the $900,000 range three years ago and now range from $1,000,000 to $1,500,000. Meanwhile, as prices soar, the quality of flips is improving, as we have also noted in past stories.
Here are a few choice quotes:
“The most desirable products on the market are brownstones and limestone buildings with two to four units. There are very few available, and this lack of inventory tends to inflate the price in most of Bedford Stuyvesant.” (Alain da Sylveira, salesperson, Fillmore Real Estate)
“The high quality of renovation seen in recent months by short-term investors has reversed completely the idea that quality could not be part of a successful flip. Exceptional products and great design are being offered to buyers.” (da Sylveira)
“As prices inch up, more and more properties will come on the market. Property owners that have lived here for many, many years are cashing in.” (Ban Leow, salesperson, Halstead Property)
“The number of sales of multi-family homes have increased nearly 30 percent compared to last year. The number of condos is about the same, because much of the multi-family properties and land that was purchased is still being renovated and converted into condos. I think the number of condo sales will increase dramatically by this time next year.” (Stephanie O’Brien, associate broker, Douglas Elliman)
So, to summarize, the market will be flooded with new condos soon. What do you predict will happen with townhouse prices — flatline, up or down?