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
YOU’VE ALREADY LOST 10%. TRY SELLING YOUR PLACE FOR IT’S 2006 PRICE NOW. YEAH, YOU’LL BE OKAY IF YOU CAN HOLD ON FOR ABOUT 10 YEARS OR MORE.
So I was dreaming when I bought my studio last year (yes, 2006) for 250K and sold it last month for 339K?
Damn, was almost as good as a wet dream.
Very true 4:20. I can’t even begin to take those comments seriously either, or fathom why those people are so insecure and, let’s face it, downright mean. But I guess that’s the MO of this entire site.
btw, new york city homes will never be affordable to the masses.
keep waiting.
they’ve never been the typical ratio 3 times, 10 times, etc. as in the rest of the country.
and they shouldn’t be. this is an island. if home prices were cheap, we’d have 20 million more people packed in this place.
wake up.
4:22 has it correct. That’s why you sell, rent and then buy (unless you know you want to hold on long term – 10 years +). Or if you’re rich (or an investor), you sell all but your primary and then buy again at bottom. I read an article about an economics professor in the DC area who was doing this.
“i think those who say with glee they hope prices will decline have some serious psychological problems.”
I think those, except the very wealthy ones, who can’t get a clue and continue to buy at today’s prevailing prices have some serious psychological problems.
“Meanwhile, we all made a killing. Yes, we might lose 10% of what we’ve seen in appreciation over the last few years, but we’ll be ok.”
This is retarted logic when you are talking about your home – you made NOTHING – 1st of all you make zero until you sell and second if you sold and bought (in NYC) virtually all properties increased in tandem so you 100% “killing” on your 1st house just means you have to pay 100% more for your 2nd house.
Please call me when you retire to South Carolina or Florida (or die) and then we can discuss your brilliant investment strategies – any such discussion now on your primary place of residence is way too premature.
Why do you leave out owners who taunt renters about never being able to afford a home (although absurd), 3:29?
I take glee because these prices are ridiculous and it is just so obvious ( http://safehaven.com/article-7192.htm “A History of Home Values”) that they will fall significantly in value. It all comes down to 3X income and 10X rent. In the end, homes values have to come down to affordable levels (think late 90’s). Sellers glee on the way up, buyers glee on the way down. Blame it on capitalism – competition.
“How is this any more HILARIOUS than the same people who came on this blog and others in 2001 and said the housing market was crashing, then again in 2002, then in 2003, 04, 05 and 06.”
BECAUSE THE TECH BUBBLE WAS REPLACED BY THIS MASSIVE CREDIT BUBBLE TO AVOID A CRASH BACK THEN – TEMPORARY RELIEF. NOW WE’RE OUT OF BUBBLES…HA HA HA HA HA HA!
Meanwhile, we all made a killing. Yes, we might lose 10% of what we’ve seen in appreciation over the last few years, but we’ll be ok.”
YOU’VE ALREADY LOST 10%. TRY SELLING YOUR PLACE FOR IT’S 2006 PRICE NOW. YEAH, YOU’LL BE OKAY IF YOU CAN HOLD ON FOR ABOUT 10 YEARS OR MORE.
Current prices are unsustainable based on income levels in NYC. Housing has a direct relationship to median income in a community. We are seeing prices falling to reflect that in many areas of the country. It will happen in NYC. Your property is only worth what someones is able to pay for it. If incomes are not increasing prices can’t either in the long term.