Elliman: Condos Down, Co-ops Flat, Brownstones Up in 4Q
Condo prices and transactions in Brooklyn continued their decline in the fourth quarter of 2008, according to a report from Prudential Douglas Elliman. The median price of a condominium fell 3.9 percent from the third quarter and 7.5 percent from a year earlier; the number of transaction fell 20 percent and 43 percent over the…
Condo prices and transactions in Brooklyn continued their decline in the fourth quarter of 2008, according to a report from Prudential Douglas Elliman. The median price of a condominium fell 3.9 percent from the third quarter and 7.5 percent from a year earlier; the number of transaction fell 20 percent and 43 percent over the same periods. While volume was also down significantly for co-ops, prices for the traditionally more stable apartment class were roughly flat. The big point of light? Townhouses in Brownstone Brooklyn, which saw median prices rise 15 percent from $1,115,000 in the fourth quarter of 2007 to $1,285,000 in the fourth quarter of 2008. “Currently, brownstones seem to be [a] relative anomaly in the market,” said Jonathan Miller, whose appraisal firm Miller Samuel prepared the report. “It’s a form of housing stock that’s limited in availability and, for the moment, has been relatively unscathed.” Sounds nice, but we think it paints too rosy a picture.
4Q Brooklyn Market Overview [Douglas Elliman]
Brownstone Brooklyn Prices Unscathed in 4Q [The Real Deal]
Brooklyn Apartment Sales Prices Fall 7.5 Pct [Reuters]
“We went from “buy now or be priced out forever” to “sell now or be priced in forever” (can’t break even on resale, even before subtracting costs).”
that sucks and gives me more sympathy for your position BHO.
Got it. Thanks, BHO.
“…why do you say this?”
A house is only worth the highest qualified bid on it. This bid can change at any time for better or for worse. Since the trend is down for the foreseeable future (next two to five years), the bids will only get lower with time. If you NEED to sell, time is not on your side.
We went from “buy now or be priced out forever” to “sell now or be priced in forever” (can’t break even on resale, even before subtracting costs).
***Bid half off peak comps***
If you’re having the gauls thinking for you, that is a problem. Look at the state of their unemployment system for a start.
(gall).
One last one, BHO ….
“But for those who need to sell…ACCEPT THE HIGHEST QUALIFIED BID ALREADY!!!”
Besides the obvious, why do you say this? Do you beleive that we need to get rid of the inventory and take our licks asap so we can get back to basics faster? Or is this more of a personal nature, i.e., sell me your house please since you are only avoiding the inevitable declines and you are making my beautiful wife, who I love to bits, angry and when she is angry she takes it out on me?
Thanks for the chat, BHO.
Have fun shopping at Duane Reade before you go home.
The ignorant (dibs, sebb et al) showing their ignorance today…
“Just do something nice for her when you get home.”
Aveeno.
“Do I understand you correctly?”
Yeah, Chiff. I was just making the point that everything was interrelated. Fees and ‘value’ appreciation.
***Bid half off peak comps***
“Perhaps that lag won’t matter much if the rebound is slow. You expect a quick drop, long bottom and then gradual rise?”
The lag (there’s already a two-month lag built into the index) is what I was referring to when I said “…no earlier than 9 months…”. History shows slow drops, slow flats and slow rebounds. That’s what I expect. Unlike the stock market, RE is veeeeeeery slow. Plenty of time to assess the market and get in (or out when you think the top is near).
***Bid half off peak comps***
“But you are. It’s all one and the same. Fear mirrors greed. People bought high and banks/investors supported the transactions because of greed (prices only go up). The course has reversed because of fear.”
I think I was thinking the same thing just putting it differently. Out of fear, banks are over-reacting but in the opposite direction than they were before. Do I understand you correctly?
As for your wife, you better hope she doesn’t read that you are rubbing Miss Muffet’s feet with Aveeno. (Pow, right in the kisser!)