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]
“Besides, price drops almost always begin at the top of the market — as demonstrated by the 20ft. Park Place home which listed for 1.99 last week.”
I believe we heard from someone later in that thread who had seen the property who said it needed massive amounts of work.
Whatever happens to the price of brownstones I better not hear that someone that bought a brownstone now has a difficult time paying for the monthly payments and would like some TARP money to help him or her stay in their home. I got a letter from my landlord and she wanted double the rent. Well I was told that was the market. Well you know what all your million dollar brownstones are almost worthless. Moving to a cardboardbox near you.
Brokers are the most honest people I know (Brooklyn Bridge is on sale). When Prudential Douglas Elliman says prices for Brownstones are increasing means everyone should buy one. There’s only a limited supply of Brownstones. Buy one now! Next year Brownstone prices will ONLY increase (Madoff recomended investment). Mortgage rates are at historic lows (if you have perfect credit or a huge downpayment). New York City (Wall Street layoffs projected to be over 200,000) especially Brooklyn Heights and Park Slope are immune from the economic downturn.
The fact is as the bubble rose developers vomited out new condo construction.
How many new historical row houses went up?
Regardless of what the current housing market is like or what it will be like in the near future. The brown/brick/limestone homes will weather the storm.
wasder : I agree with you.
dittoburg : You are correct with the LIC , but that is really not that many new condos when compared to the amount of people in NYC. Now if you go to south florida and you see what has happened you will understand why prices are falling. Supply and demand my friends .
DIBS, that may be true all the time! – but I think a dispassionate considered view would agree with me in the last year (remember that I’ve owned and rented so I see the pros and cons of each)
NorthHeights….your last paragraph seems perfectly logical. The sales prices in the second paragraph are obviously skewed to the high side by a concentartion of high end sales in the extremely low and unrealistic number of sales at 14!!!!
I looked at the full year 2007 and 2008 sales prices posted on nyc.gov for Brooklyn Heights 1-, 2- and 3-family houses. Each year had 14 sales. (I ignored a few sales of townhouses classified as rental walk-ups because it’s impossible to know whether the buyer will convert back to 1,2 family or turn into condos.) I didn’t bother doing quarter to quarter comparisons because the annual sample size is itself pretty small.
Median price increased by 1.8% (to $3.5 mil), average price increased by 4% (to $3.85 mil) and the average per-square-foot price increased by 7.1% (to $987).
Interestingly, in 2008, average discount to initial ask was 12.1%, whereas in 2007, there was an average 1.9% premium to ask. (Based on streeteasy and other listing data.)
the chicken….Renters are always head in their own mind!!!