Average Prices Up in BK, Inventory Down
Looks like the law of supply and demand is at work in Brooklyn. According to a market trend report from Trulia, the average listing price of Brooklyn homes rose 1.4% between September 24 and October 1, from $691,857 to $701,779. The number of listings, however, went down from about 4,725 to about 4,625. Think folks…
Looks like the law of supply and demand is at work in Brooklyn. According to a market trend report from Trulia, the average listing price of Brooklyn homes rose 1.4% between September 24 and October 1, from $691,857 to $701,779. The number of listings, however, went down from about 4,725 to about 4,625. Think folks are holding off releasing units until the credit crisis wanes? We thought prices were starting to come down…
Prices in Prime Brooklyn will not go down. Sellers will allow 10% below ask in BH, PS, CG, CH, FG but that’s about it. Moreover, others like myself will not sell in this environment, but, rather wait out the storm, thereby greatly reducing inventory. There’s nothing new being built, unlike Manhattan, I don’t see miles upon miles of high rises ino ur future. Those 4th Ave condos are already turning rental which is to be expected, further reducing inventory. Blokes from Manhattan will move to Brooklyn as will retirees from LI and Westchester. We’re all good in this neck of the woods. Fo’ real.
lechacal at October 9, 2008 1:40 PM = QOMD
2 years! I’m afraid I don’t have that kind of patience, and my landlord may not have that many years left either. I don’t dispute your theory, and greatly appreciate your insight, but when I see a house that I like at a fair price, I’m buying it. Then I suppose another kind of patience will have to kick in, that is, I won’t be able to sell for 10 years. But that’s ok, since that’s the plan.
This article is about 1 week’s worth of data. That doesn’t seem like enough to draw conclusions from.
“Iknow” – that’s what I said at the top… just sayin.
Many people still saving hope that le cheval is correct.
The graph may also reflect that houses worth less are not going on the market and the higher end prices are. What is the median price?
What is happening right now is no different from what was happening in other U.S. markets starting in 2005. New York is three years late for various reasons. Buyers and sellers were in a standoff nationally for a while as well.
Just remember this: Resist the first five or six urges to “jump on a deal before the market turns around.” Don’t buy until everyone is exhausted with the declining market. You will be rewarded for your patience. There will be false starts to a turnaround, the first of which will be when the equity markets recover. The sebbs of the world will say that the stock market is up, so better buy right now. They will be wrong. People will slowly realize that the recovery in the stock market has very little to do with the price of real estate in Brooklyn and the market will go back into decline. Then there will be another false start in the New York market when the national housing market turns around. Don’t buy. Keep waiting. When New York prices keep going down even after the stock market and national market have recovered, sellers will finally capitulate. That won’t happen for at least another two years, maybe more. Your patience will be rewarded.
I suspect we’re in for a protracted stand-off between buyers and sellers, since, as lechacal points out, many sellers will refuse to capitulate, but most buyers will also refuse to (or be unable to) pay the current sky-high prices. But yes, the weaker sellers will start to cave and that will re-set comps – it’s already staring to happen. People I know who are divorcing, for example, are indeed being forced to sell at a steep discount. I also wonder how many near-retirees will realize that selling their house now could be the one way they can get their nest egg back in order, at a time when they can snap up another property in another market (even just outside of NYC) for a very deep discount.