Brooklyn Prices Drop It Like It's Not Hot
OK, we’re gonna try this post again…The average sales price of nearly every type of property in Brooklyn has dropped over the past three months, some in the double digits, according to The Corcoran Group’s most recent report, which tracks deals made by the firm; overall, both average and median prices fell 2% year-over-year. “There’s…
OK, we’re gonna try this post again...The average sales price of nearly every type of property in Brooklyn has dropped over the past three months, some in the double digits, according to The Corcoran Group’s most recent report, which tracks deals made by the firm; overall, both average and median prices fell 2% year-over-year. “There’s been a definite pullback in the marketplace,” said Brooklyn Regional VP Frank Percesepe. Single-family townhouses fared the worst, dropping between the first quarter last year and the first quarter of this year from an average sales price of $1,798,000 to $1,390,000, a 23 percent decrease. (By comparison, multifamilies fell 10%.) The average price of a two-bedroom fell 3 percent, from $611,000 to $591,000. The one bright spot? Studios rose from an average price of $272,000 to $350,00. On the larger end of the market, three-bedroom co-ops fared much better than their condo brethren, rising 12% versus a decline of 5%. Percesepe said sales closed during the first quarter reflect economic difficulties that started to set in last November, and the Bear Stearns collapse could affect next quarter. But he said attendance at open houses was up last week, only the buyers are different than during Brooklyn’s peak boom era. “There’s fewer investors, more people buying for their own homes.”
“Aren’t Jan., Feb., and March usually slow sales months with low inventory? If that’s the case now, isn’t the data used for these figures somewhat suspect?”
Bob Marvin, in addition to 11:01’s explanation, last time I was in the market (selling and buying), I was told by a Corcoran broker that January 1 to Memorial Day is the hot season for selling; obviously highly correlated with Wall Street bonus season. Given the bonuses, credit crunch, blah blah blan this year, the lower sales, at least in the higher end market, make sense.
I think the topic is now officially beaten to death. I’ll have a double Jack and Diet Coke please!
I think real estate in general is beaten to death at this point, to be perfectly frank.
I now have my eyes focussed on more interesting things like finding that perfect vintage danish modern side table at Brooklyn Flea this weekend!
That and the garden, which is really starting to come alive.
Talking about every little price drop or price increase is making my head hurt. I really just don’t care anymore. I’m not leaving Brooklyn any time soon.
No surprise the prices have been cut on the 3BR new condos and newly renovated “browndos”. They are a good idea and right for the family-oriented Brooklyn market, but are SO overpriced. The developers think they’re selling a solid gold condo just because it has an extra closet they can call a bedroom. The older coops are better layout if you’re looking for a 3BR unit. Or of course you can just get a house. I’m sure the prices on the 3 BR condos over the last couple years helped many people decide to go ahead and get a house instead. That was the case with us.
you were right jerri
besides guest 12:14, don’t you think this topic is already beat to death??
you’re not invited to Augie’s or Excelsior
argh. here we go again with these 3.
You mean there’s a bad way to be reamed?
At the risk of being accused of being sneaky brokers (redundant?) trying to sabotage blogs with banal conversation thereby taking focus off the sagging real estate market, we should keep the friendly banter to a minimum.
(shout out to daveinbedstuy and all my other bold text peeps)
behave you two!!!
Oh are we allowed to say hi to each other, Biff?
I’m afraid I might get reamed from the anonymous guests for not talking strictly about real estate.
And I don’t mean reamed in the good way…
😉
11:43, I’m sad to say I had that same thought. Perhaps we need a giant glass canopy like the one added to the BAM to spruce it up. It can tilt down to the East River – of course some might fear the rising water levels would submerge Staten Island (and of course some others might not fear that).
(Hi Jerri)