Brownstone Market: Trouble on the Fringes?
This month’s issue of The Real Deal has an article about the ramifications of a cooling real estate market in Brooklyn (despite the debatability of that assertion). TRD contends that the more “farflung” nabes are the most vulnerable, pointing not only to some price reductions in spots like Bed Stuy as well as signs of…
This month’s issue of The Real Deal has an article about the ramifications of a cooling real estate market in Brooklyn (despite the debatability of that assertion). TRD contends that the more “farflung” nabes are the most vulnerable, pointing not only to some price reductions in spots like Bed Stuy as well as signs of mortgage lenders becoming more stringent about appraisals and comps. One Brown Harris Stevens broker claims that houses in Bed Stuy that may have been selling for for around $800,000 a few months ago now have asking prices closer to $600,000. Maybe, but frankly we haven’t seen many examples of such a dramatic shift. Sure people are being more deliberate in the search and may be less likely to plunk down a million bucks for a wreck in a less proven area, but 25% decreases are the exception not the rule as far as we’re aware.
Doubts on Fringe of B’kln [The Real Deal]
BoCoCa is an alledgely mouth-watering acronym for the neighborhoods of Boerum Hill, Cobble Hill, and Carroll Gardens
CHP, I hope you didn’t take it personally..in the 80’s, cabbies refused to go to Brooklyn full stop.
Amy, Kush is a great restaurant on Fulton and Cambridge Pl. Is that right? I always just “find” it.
Ok, now can someone tell me what BOCOCA is??
I looked at brownstones in BS. It’s not that I found the area “scary”, but that every building was a hike from the subway and I couldn’t find a single grocery store, bakery, restaurant, etc. in a wide radius of any building that was in my price range.
I’m renting in Carroll Gardens 3 block from subway on street that has corner commercial/retail and within 3 blocks there is: Convince Grocery store, Dry Cleaners, Laundromat, Bakery, Liquor Store, Met Foods, Drug Store, Pizza/Italian, Chinese take-a-way, Sandwich Shop, Gourmet Restaurant, Pet Supply store, etc.
Sure I would like to buy, and BS does have some lovely Brownstones that are much more affordable than BOCOCA, but it’s the lack of commercial/retail in large areas of BS that have knocked it off my list.
Anon 3/28 @ 2:44 PM “I just think people need to be realistic and be prepared to make compromises either in the neighborhood that they can afford to live in ‘or’ the size of property that they can afford to buy.”
Spoken like a RE agent. The tide is turning, and now its the sellers who have to get realistic and make compromises
I read an article last year about the Wash DC market where a couple got nothing of the features they were looking for (neighborhood, space, appliances, garage, etc.); paid 50% more than they budgeted for it – including ludicrous escalator clauses; but were ‘very happy’ with their purchase. Damned if I saw any objective indicia of something to be happy about.
You’re only a captive to your landlord because landlords know most people are reluctant to move. If you’re willing to move, and understand that replacing a tennant costs at least one month’s rent, plus advertising and painting clean-up costs, you’ve got at least 9% to negotiate with.
Hi Amy – I’m just reading your posting and I couldn’t agree more. I wonder how many of the people who say things about bed-stuy have ever spent time there. I live in Stuyvesant Heights and I’ve lived in sydney, seoul, paris, london, toronto, hong kong and manhattan.
the people in STUYVESANT HEIGHTS (near where I live) are the FRIENDLIEST (on average) of any of the places I listed above.
“How much have you paid to renovate? How much has that renovation depreciated? How quickly are your maintenance expenses rising? How’s the building’s facade? Roof? Bricks? Boiler? Elevator? Have you figured out the rate of physical depreciation? Are your taxes rising? What were your closing costs? What would your selling costs be if you sold? How quickly does your principal amortize?
Your estimated 18-month appreciation of $131K, may not be as much as you think and your expenses may not be as low as you think.”
No renovation needed, as the apt. was in “move in” condition. Maintenance fee has risen a measly $10. A new roof and boiler were installed about six months prior to our arrival. The building’s facade is in excellent condition and the boiler is only two years old. Closing costs were a mere 2% and taxes have risen, but at a rate I can easily afford. And since I don’t plan to move, selling costs are irrelevant. So, despite your attempts to burst my bubble, it’s still painfully obvious that owning, for me, is much cheaper than renting. Plus, I don’t have to worry about some landlord not renewing my lease.
I have lived many years on McDonough Street (at that time it was spelled McDonough) and I would also include Decatur and Bainbridge as lovely streets. Different parts of McDonough Street have frequently won the BBG awards for runners up as the greenest block in Brooklyn
David is on target when he says prices (everywhere in the city) have no relation to any economic reality.
People have only been buying because they’re afraid they’ll pay more next week or they’ll be able to make a killing in 6 months. Change those perceptions, which are changing fast now, and that silly money has got to go somewhere else. People can’t rent to pay the note or, for the most part, live and work in these overpriced places.
Me, I can’t wait to see scores of real estate hypsters asking me, like they will be, “You want an extra shot in that latte, sir?” Payback’s a bitch!
Hey, I sold and made some dough and now must rent and wait. Fall’s looking good, maybe.
@ Crown Heights
Of late (let’s say 3 years or so), I haven’t had any problems with cabbies coming to the Stuy (or the Wild Wild West if you listen to some people on this site). I have, however, had to give simple directions back to Atlantic or Dekalb to facilitate their escape from the Stuy – especially since I rarely take Atlantic home. Directions back to the Willie B. would be too difficult.
I, too, have made sure to tip the cabbies for the courteous service to the “fringe.” I always hope that the extra tip will (a) make them think that it is worthwhile even though they won’t pickup a return fare and (b) make it easier on fellow fringers in the future.
@ McTeague…I noticed that you left out Decatur. Is that block not up to snuff in your opinion? (j/k)