Brooklyn Prices Set to Cool Off?
We’ve noticed several signs recently that the quickly rising prices for Brooklyn town houses may begin to slow soon. Nationally, growth of home prices is slowing down, according to the Case Shiller index. Mortgage interest rates have finally begun to rise. And, finally, equity-backed investment firms — which have purchased at least an estimated third…
We’ve noticed several signs recently that the quickly rising prices for Brooklyn town houses may begin to slow soon. Nationally, growth of home prices is slowing down, according to the Case Shiller index. Mortgage interest rates have finally begun to rise. And, finally, equity-backed investment firms — which have purchased at least an estimated third of homes across the U.S. and buoyed prices nationally as well as in Brooklyn in recent years — are beginning to falter. Last week, the U.S.’s second biggest owner of single-family rentals, American Homes 4 Rent, laid off employees after going public. Early mover Carrington Holding has stopped buying single-family homes to rent and has started to sell, reported Businessweek.
“We just don’t see the returns there,” said the company’s chief executive officer in the story. “There’s a lot of — bluntly — stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.” At least three companies have reported losses in their single-family rental investment businesses because they snapped up houses faster than they could fix them up and fill them with tenants. “Colony American Homes, a division of Thomas Barrack Jr.’s Colony Capital, has found tenants for only 51 percent of the 9,931 homes it bought for $1.4 billion, according to a May 28 regulatory filing. American Residential Properties (ARPI) and Silver Bay Realty Trust (SBY) reported losses in the quarter ended March 31,” the story said.
Closer to home, we hear even more inventory is about to come on the market in Bed Stuy — so much inventory that prices are expected to slow or even plateau there. What do you think? Could sale prices for town houses slow across the borough? What about apartments and rentals?
I need to do my daily hater quieting… so, prices will level off with rising interest rates cooling demand. People rushed to get a lower rate creating a pause now. Bear in mind the higher interest rates have made places effectively about 10-12% more expensive for buyers. This is absorbing some of the price increase this month. Most people buying thought even if I pay 5% more and have rates one percent lower, why not. Developers at the same time saw a great buying opportunity and decided get are while staff buying, even if they take a short term loss, they know they can profit enormously in long term. …. may there be done that ramped up too quickly and under estimated the work required? Yes. But this not a problem to the market unless all do. … now remember the country is coming off all time low in supply, this will take us off all times lows, but property is still affordable, people will buy. Bed stuy is still thebest deal out. Brooklyn is still the world’s best city (and many people still believe it is just an alternative burough). Prices will rise … rising rates historically are a very short term impact. Bed stuy is a huge place, of course inventory will come to market
and bed stuy is not the best deal out there.
obvi, u don’t follow real estate in brooklyn or nyc, otherwise you would know what a ‘deal’ is.
I have followed ny and bk for the past decade daily. I know what a deal is…. you could say the s&p 500 was only a “deal” in 1970 when it was 72$ but there have been many deals since (it’s now $1632)… I see where you get the screen name
If u think a $2 million house in a nabe that lacks amenities and great schools is a deal than you’re the halfwit .
“now remember the country is coming off all time low in supply”
there’s plenty of housing supply availabe outside of your Brooklyn bubble.
No. The country was at an all time (tracked history) supply low. Upstate NY and sandy impacted areas were some of the only places with supply.
Where u getting ur data from?
would love to see it.
Affordable as compared to what?
Predicition:
Dixon will be bust.