A Pair of ProHi Price Cuts
After last week’s carnage, you’d think there would be price reductions left and right, but it appears that more of a wait-and-see bunker mentality set in in the short run. Corcoran did take out the axe, though, on two of its townhouse listings in Prospect Heights. The four-story house at 368 Park Place (left), which…
After last week’s carnage, you’d think there would be price reductions left and right, but it appears that more of a wait-and-see bunker mentality set in in the short run. Corcoran did take out the axe, though, on two of its townhouse listings in Prospect Heights. The four-story house at 368 Park Place (left), which started out at $1,850,000 in April and had already been trimmed three times, got another $75,000 nudge down to $1,525,000. The professional-looking makeover at 210 Prospect Place (right) had its first cut since coming on the market in July at $2,495,000; it’s now testing the waters at $2,250,000.
368 Park Place [Corcoran] GMAP P*Shark
210 Prospect Place [Corcoran] GMAP P*Shark
House of the Day: 210 Prospect Place [Brownstoner]
Miss Muffet, If someone bought a house in 2003 for 850K and put 500k into a full gut reno, how much would the seller expect to sell that house for today without being considered greedy by you. Just curious?
there were 71 comments in that thread…
apparently the comment-bot has a new function: keeping score! what fun!
I Disagree on 210 Prospect Place in July (when it was priced at $2.495mil):
“it’s lovely, if not that inspired. not that everything needs to be inspired or inspiring – i prefer to add my personal touches through decor rather than architecture and i bet a lot of buyers do, too. i would prefer the kitchen and dining on the parlor level, but reasonable minds can differ on that. i think they’ll have no problem getting their price and then some. it seems fairly priced, in line with the comps and taking into consideration reno costs.
Posted by: i disagree at July 24, 2008 2:36 PM
Miss Muffett on 210 Prospect Place in July:
I’m surprised some people are saying this house will get over ask – this seems like a very rare phenomenon these days unless something is *really* underpriced/cheap, which does not seem to the case with this house. It looks like it’s well staged, but that can be a hindrance sometimes if a buyer thinks it won’t look as good without that exact same furniture there. This house is definitely a candidate for a revisit a few months from now, since there are such divergent opinions here about the price it will get.
Posted by: Miss Muffett at July 25, 2008 9:55 PM
All I can say is, the market has really changed – take a look at the July commentary about re: 210 Prospect Place – all those people proclaiming it would surely get its 2.5 mil price, if not over ask. I, on the other hand, pointed out it probably would not. I was right.
sigh. does any of what you said relate specifically to any information about the houses that are the genesis of this thread? no? i didn’t think so. do you know that these sellers are situated similarly as your super-secret private acquaintances are? no? i didn’t think so. do you know if their valued tripled over the past 10 years? no? i didn’t think so. are you saying anything new or materially different from what you’ve said in your last bajillion or so posts here? no? i didn’t think so. are you assuming that because i disagree with you that i haven’t been closely following the market or haven’t looked at property shark? why, yes! is that surprising? no.
Oh, and “I disagree” – my examples of properties that have more than doubled, and in some cases nearly tripled in value in the last 10 years is hardly hyperbolic – ask anyone who has been closely following the market, or spend a few hours on PropertyShark and you’ll see that this is true of many properties. What is “bizarre” is that what you are calling a few “hyperbolic,” “anecdotal” examples ARE actually representative of what’s happened to real estate prices in prime Brooklyn neighborhoods nearly across the board. And THAT is why I think the Brooklyn market is ripe for a correction, and also why I think that, even if it falls as much as 50%, it will be still be at vastly higher price levels than it’s been in a long, long time (save the last 4-5 yrs).
Traditionalmod – You seem to misunderstand me. Of course, I’m not saying the gains of past 10yrs were paper gains only since obviously many people cashed out so their gains are real. I’m just saying that UNTIL one cashes out, the gains are on paper. I’m also not saying that the Bklyn of today shouldn’t be worth a lot more than the Bklyn of 1987. Obviously, you could buy Bklyn real estate for way way less then, even at what was at the time the peak of the market. Even if things crashed now, they would be far above the last peak. All I’m saying is that the rate of price increases over the last decade or so was unprecedented (and unsustainable), and there is plenty of room now for a correction which I do, yes, think is inevitable. My willingness to buy a house in Bklyn for what is still a lot of money (let’s say 1.5 million) is not in any way inconsistent with what I’m saying since that sum is significantly less than the prices currently on the market (without getting into the specifics of what we’re looking for) but far more than prices have been historically, up until very, very recently.
People,
Please stop defending yourselves. You’re all correct vis-a-vis your own situations, perspectives, and lives. There is no need to get hot under the collar. There are a number of people looking to buy who are sitting on downpayments that are hopefully in relatively safe vehicles and they will buy when the time is right for them. Sellers who really need to sell will eventually strike a deal with a price they can accept.
By the way, to the person who wrote that the dot.com mess starting March 2000 was the trigger/marker that sent the economy into a slump should be made aware that in fact, the unraveling really started with the telecommunications bubble bursting January 2000 with Lucent announcing it missed earnings. I was there at that moment. We already knew for many months that it was coming but it wasn’t until January 8, 2000 when CEO Rich McGinn got on TV and had his big conference call that AM. We had had a huge snowstorm the night before and almsot no one had made it to the office. I was there and saw Rich…he shook my and was jaunty but doom was in the air and his eyes…and he was pushed out not long after with a $10m package.
To keep the market bouyant, and for a many other reasons I won’t go into, the interest rates were lowered and lowered and lowered over the years. The telecoms and then the tech companies started the big layoffs and then 9-11 happened and many very well qualified people were out of work for months and even for over a year. What a mess. It was widespread. I girlfriend of mine, in her 50’s at that time, who was a mid-level exec in insurance and really knew her stuff was out of work for a year living off severance and savings. The son of friends of ours who is computer genius of some sort was also out of work for about a year. There were many other cases I heard about.
Let’s hope going forward and over the next years, people with stable job outlooks and decent financials will be able to get mortgages without too many headaches. We didn’t go for one in the last years but it appeared from what friends were telling me, the standards and vetting process were too lax these last couple of years.