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]
“I have no doubt that in 5-10 years I’ll make a handsome profit on this house.”
Hey!!! Koolaid!!!
“How many new historical row houses went up?”
Effectively, many. From dilapidation to renovation. Brom boarded up to “Boardwalk”. A gut reno is not much different than building a brand new house on vacant land. You’re still putting in new studs, beams in some cases, floors in some cases, plaster, tile, fixtures, mechanicals, appliances, sinks, toilets, yada yada yada. “Restored” is the new “New”.
Before Team Bull gets ahead of itself, let’s revisit the above:
“It’s a form of housing stock that’s limited in availability and, for the moment [key word], has been relatively unscathed.”
AND (from the other Jonathan)
“Sounds nice, but we think it paints too rosy a picture.”
Keep the cameras rolling. Brownstone volume is down. Prices will classically follow. Pre-Lehman contracts.
(Team Bear)
***Bid half off peak comps***
fsrg: But nobody wants to live in Philly , or Baltimore.
“but they will sell nonetheless b/c they are rare”
Rare – really?? There are tens of thousands of them (if not more) all over NYC, in every Boro (except maybe SI), nearby cities like Jersey City and Newark and similar structures (2-4 story row houses) are available by the thousands in every city that has any appreciable residential component (i.e. Boston, Philly, Baltimore, etc..)
Corcoran also released their report which also goes along with the idea that Brownstone Brooklyn is holding on better than other areas…
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Corcoran has also released its year end report and the results are somewhat at odds with the early bloodletting reported by Mr. Miller. Cocoran reported an overall median increase in Brooklyn prices of 2 percent from 2007 to $580,000. Per Corcoran:
In 2008, median co-op sale price was up 7%. Similar to 2007, co-op median price increased in all size categories, ranging from a 2% increase for studios to an 18% increase for three-bedroom residences or larger. Meanwhile, median condo price was down in every size category, for an overall decrease of 5%. However, because there were more sales of smaller, more efficient units this year, average price per square foot still went up slightly while absolute prices fell. In the townhouse market, the median price for a single-family unit increased 6%, while the median price for a 2-4 family townhouse increased substantially by 34%.
Corcoran, by the way, found median condo prices in Williamsburg down 13 pecent. The most interesting overall trend in the report is that it found condo prices down 5 percent while coop prices increased 7 percent. So, one thing that both reports can agree on is that the coop market is holding up better than condos.
I would suspect brownstones reflect more of a flight to quality. If fewer transactions are taking place overall, than given people’s psychological anchoring on higher prices it seems logical that only the premium properties are trading, distorting the average up.
I agree with Townhouselady. Brown/Brick/Limestone buildings will weather the Real Estate meltdown. Sure,they may sell a few dollars below asking but they will sell nonetheless b/c they are rare and tend to be a great investment.
“I got a letter from my landlord”
I opened and read it…it said they were SUCKERS!
True Sebb, but supply and demand is also local. There is not so much demand to live on the Pulaski bridge or some condo overlooking Borden Ave. that the supply in LIC will not be an over-supply.
Not that that will have any effect the Brownstone market.
Yawn. You know where I stand. Jackal out.