Bullish Words from One Brownstone Brooklyn Broker
We asked a broker we know and trust how things are going. Here was the response: It is extremely busy. Buyers are out in droves. A lot of them have their places sold already or in contract and are very motivated. Or else they are just extremely motivated based on interest rates, lame rental selection…
We asked a broker we know and trust how things are going. Here was the response:
It is extremely busy. Buyers are out in droves. A lot of them have their places sold already or in contract and are very motivated. Or else they are just extremely motivated based on interest rates, lame rental selection out there and lower prices to buy. Now we are seeing deals come together fast for a lot of listings and a fair number of places are having 6-15 people bidding on them within the first couple of weeks a property comes on the market. Location is a big selling point now. Prime in all the neighborhoods we serve moves very fast. It is interesting how things changes so suddenly after January 1. It will be interesting to see whether this will translate to more listings coming on the market when sellers start realizing things are moving briskly, or if inventory will still stay low, which could (gasp…) raise prices down the road. ‘Never enough inventory’ is a constant mantra brokers and buyers are saying for prime properties.
Interesting, no?
Sure, GE, a utility, is looking good right now. So are many businesses. That does not mean that we won’t have our own second economic crisis, a la Greece.
I’m not touching that one.
How many times do you guys need to be hit over the head with stronger economic data to believe it???
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more times than it takes licks to get to the tootsie roll center of a tootsie pop.
oh yeah, GE certainly looks like it has great insight into the future!!
how did their little foray into subrime go?
http://finance.yahoo.com/q/ta?s=GE&t=5y&l=on&z=m&q=l&p=&a=&c=
Posted by: joeingowanus at March 16, 2010 12:21 PM
The optimistic outlook they expressed is going forward, not in hindsight. This is why the share price is up. It’s not rocket science. In this regulatory environment, if a company wasn’t fully certain of the outlook, they would not make such forward-looking statement.
How many times do you guys need to be hit over the head with stronger economic data to believe it???
Agree, DIBS is right on brownstone prices bottoming and that it could be temporary before a double dip.
BHO, I don’t think delayed foreclosures have too much to do with the NYC market except, as you say, in the sense that foreclosures in the rest of the country screw up the financial industry, which is based in NYC.
We already went through a big period of short sales and foreclosures in NYC triggered by subprime loans that were given out in 2004 and 2005. I don’t see too many houses in “prime” Brooklyn going into foreclosure, even if people lose their jobs. People can sell these houses, they are desirable, they don’t get auctioned off, and the owners have resources, even if they lose a bunch of money because prices have fallen.
BHO, how have I lost you?
The demand for real estate in NYC remains strong. We had a fiscal crisis, all purchases over $500 stopped dead for a time, the economy shrunk 20 percent, we’re now getting back to normal, people are out looking for houses, I’m expecting another fiscal crisis in the next year or three, then more getting back to normal. The end result is flat prices over a period of eight or ten years.
And DIBS is so right on brownstone prices bottoming (temporarily), so far. Duh, that’s what double dips do. But there’s another flight of even steeper stairs after the landing. This false bottom, BTW, is far behind us as data lags by at least two months. Case-Shiller is already down again, month-over-month.
***Bid half off peak comps***
oh yeah, GE certainly looks like it has great insight into the future!!
how did their little foray into subrime go?
http://finance.yahoo.com/q/ta?s=GE&t=5y&l=on&z=m&q=l&p=&a=&c=
OK, you win. When GE, one of the largest industrial companies in the world – in aerospace, health care, leasing, power, water, security, media content, says that things globally “are becoming clearer around the world,” and “sees results improving the rest of 2010.” to the extent that they come out and publicly say they are likely to raise their dividend, I defer to BHO’s economic insights. After all, he’s been so right on **Brownstones Half Off** so far!!!