Big Slowdown Seen in Brooklyn's Poorest Zones
The Brooklyn market is a tale of two worlds, according to housing data released on Friday by the appraisal firm HMS Associates. While sales volume remained “brisk” in the higher-income areas like Park Slope and Brooklyn Heights, the number of homes that changed hands in Bedford Stuyvesant, Brownsville and East New York fell by about…
The Brooklyn market is a tale of two worlds, according to housing data released on Friday by the appraisal firm HMS Associates. While sales volume remained “brisk” in the higher-income areas like Park Slope and Brooklyn Heights, the number of homes that changed hands in Bedford Stuyvesant, Brownsville and East New York fell by about half in the six month period ended September 12 versus the same period in 2006. (Bed-Stuy sales fell from 438 to 203; East New York from 416 to 182; Brownsville from 49 to 25. The report is showing clearly the subprime impact in these neighborhoods, said the firm’s founder Sam Heskel. The report (which HMS would not release until later this morning) also noted that while prices in these three hard-hit areas had not started to come down, they are “likely to decline in coming months.”
Brooklyn Neigborhoods Feel Housing Crunch [Crain’s]
Photo of Brownsville houses by GKJarvis
The quickest path to an economic recovery is to let this impending recession run it’s course. To get it over with if you will. Rate cuts are nothing more than temporary relief, if that. They do nothing to negate the all-of-a-sudden tough lending standards that are purging the qualified demand pool of many would-be buyers. There have been reports of many sub-prime borrowers in default even before their resets. Both stock and home prices are on life support. Sooner or later, the plug will be yanked.
the fed wasn’t trying to help them. Bush offered a relief package for a few of those poor suckers last week. The fed cut is to head off recession, and the cut to the discount rate is to preserve liquidity in the banking system. However, when some ARMs reset, they won’t reset as high now, and other ARMs might go a little lower
FROM MARKETWATCH.COM: For those on the brink of foreclosure, that’s not the life preserver they need to keep them from falling in. And for those who also are subprime mortgage borrowers — there’s an estimated 1.5 million to 2 million out there — the Fed move is of little consequence.
“It will help those who need it the least,” said Richard Hastings, an analyst at Bernard Sands LLC. “But for those who need the most help, this does nothing for them. The Fed cannot help them at all.”
What is considered rich around here?
The Fed cut interest rates by half a point.
sure, push the envelope.
places like those on the named streets in park slope cost 5 million in brooklyn heights and 10 in manhattan.
no reason not to try to inch them up a bit.
i prefer park slope over manhattan any day.
Thanks for the feedback… seeing some of these places fly on Berkeley, maybe I should ask for more. Ha ha.
yeah, president is equally great.
while things might be at their peak, i believe places like park slope are and will hold their value quite well.
the north slope in terms of location is prime. doesn’t get much better. and the housing stock is superb.
very few brownstones come on the market up here and i’ve noticed that they always get snatched up quite quickly.
without seeing your place, i’d say 3 million will be more common around these parts.
My place is not on Berkeley (President), but the block is still beautiful. I always assumed it was worth high $2’s or maybe even $3, but this listing opened my eyes a bit. Especially, since everything I hear on the news and read (see NY Mag cover) suggests the market is at a peak.