4Q-Elliman-Chart.jpg
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]


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  1. “You egotistical schmuck!”

    You’re right, Townhouselady. I take that on the chin. I apologize to all the ladies out there for my chauvinistic streak. God forbid my wife reads what I wrote. I would get snuffed.

    (But seriously, ladies, don’t you have a stereotype or two about us?)

    ***Bid half off peak comps***

  2. BHO: THanks for getting back to me.

    Interesting point on the emotion of buying. Ultimately, this is a business deal, but it can be very hard not to get emotional – “I love this house and have to buy it” “I am having a hard time lettng go of a house full of memories”

    Hopefully, your head wins out but your heart isn’t hurt in the process.

    As for C-S Index, my comment was more of ending the running arguement but I understand your point. However, isn’t there a lag in the reporting? Granted it is not long, but if you are not ready to buy as soon as the reports would say buy you end up a little behind the curve right? You have to find the house, get the bid accepted, get the financing and close. That can take time. Perhaps that lag won’t matter much if the rebound is slow. You expect a quick drop, long bottom and then gradual rise?

  3. Townhouse Lady–you took the words right out of my mouth. Everytime DOW/BHO starts to get on my better side out comes a clunker like that. Egotistical does not even do his attitude justice.

  4. “Do you think sales volume could be affected by banks being hesitent to lend?”

    Absolutely. They no longer collect fees to offload the ‘hot potatos’. They have to hold them and record them in their books whether the ‘patatos’ are performing or not.

    “I am not tlaking about the obvious application that should have been rejected the first time around.”

    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.

    ***Bid half off peak comps***

  5. “It’s only the canary in the coal mine if inventory rises significantly.”

    Not true. Inventory can stay the same and even drop if there is a minority of sellers who don’t NEED to sell and they take their listings off the market. The remaining majority would be forced to dump their holdings, possibly in short sales. This minority/majority distribution is an assumption but we are living in very dark days economically so it is not far fetched. At all.

    ***Bid half off peak comps***

  6. “Perpetual tug of war with wifey’s emotional irrationality.”

    BHO: Now it’s on…

    So help me god if my husband ever had the gaul to think, let alone post something as insensitive as that about me.

    I hope, for her own sake she’s not reading this.

    You egotistical schmuck!

  7. BHO: After you are done with the Aveeno ….

    Do you think sales volume could be affected by banks being hesitent to lend? I am not tlaking about the obvious application that should have been rejected the first time around. I am talking about a reaction by some lending institutions to become almost too strict with their lending requirements thus keeping some potential buyers out of the market.

    I thnk some of the sales volume decrease is due to people sitting on teh sidelines and waiting, but I think some of this has to do with the turbulence in the banking industry as well.

  8. “BHO: Are you actively looking for a home, or are you siting on the sidelines?”

    Both, off and on. Perpetual tug of war with wifey’s emotional irrationality. Now, it’s on.

    “For those of us who own and don’t need to sell, there is nothing more to do but keep making payments on the mortgage and living our lives.”

    But for those who need to sell…ACCEPT THE HIGHEST QUALIFIED BID ALREADY!!!

    “For people looking to jump in, I am interested as to what drives your decision.”

    Me too. Speak up people!

    “Although people can talk in theory, we won’t know the full picture until this is all over and we can look back at the timing and trends.”

    Code for “you can’t time the market”. But you can. An analysis of the history of the Case-Shiller Index will show you that a ‘top’ or ‘bottom’ in the market has occured no earlier than 9 months when the reading approached zero on a year-over-year basis (month to month change from same month last year). From in the ‘red’ (losses) to in the ‘green’ (gains) or vice versa.

    Bottom line, you’re gonna take a position. What do you base that position on if not history?

    (Team Bear)

    ***Bid half off peak comps***

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