Market Pulse: Bullish Words From a Broker
We thought readers would be interested to hear these thoughts on the Brooklyn market that a broker at a major firm shared with us via email a few days ago. The market truly is stronger than ever. It is really nutty in a good way now. There are almost constantly multiple bidders at or above…
We thought readers would be interested to hear these thoughts on the Brooklyn market that a broker at a major firm shared with us via email a few days ago.
The market truly is stronger than ever. It is really nutty in a good way now. There are almost constantly multiple bidders at or above full price now. Things are now routinely selling in a week to 10 days.
Obviously, a broker has a vested interest in perpetuating the perception that the market is strong, but it seems to be consistent with what we’re hearing anecdotally. Does this jibe with what others are seeing out there? Especially interested in hearing from brokers on this one.
the northeast also showed (by far) the greatest increase in new home sales per the data released yesterday. 20 something percent increse, in fact.
the existing home sales number was down 2 percent-ish if i’m not mistaken.
the factor you are not including on the nyc real estate situation is that from my experience i have simply noted that a ton of people want to live and move to new york city.
i have friends all over the country who all they talk about is wanting to move here. now that the city has cleaned up crime (quite quickly, i might add) and improved the quality of life, even the announcement of the taxi fleet turning hybrid has a ton of people excited about new york. it’s a great place to live. as the suburbs and rural areas become more and more sterile and bland, the greatest city in the us well undoubtedly become more popular. what we are in is a reversal of the white flight to the suburbs from decades ago.
i believe it explains a lot of what is happening right now.
people like to complain about all the kids/strollers in park slope, but you know what…seeing that many children in an urban city like new york is relatively rare pre-1990 and is a VERY good sign of a healthy city and neighborhood. these are people who would normally have left for the wealthy burbs in jersey, ct, westchester, etc and are now, in many cases staying. they are the baby boomer generation which has a TON of money and are seeing their portfolios rise by the day.
things are different now, as much as people like to say otherwise.
I don’t know if the market is exploding again or not. My wife and I were prospective buyers towards the end of last year, and even had a couple of offers accepted only to fall through before contract was signed. Realized at that point, I wasn’t willing to pay what many people were asking. I thought then and still think now that the market is overpriced. That does not mean that the market is in for a correction or a decline, it just means that the numbers people are paying for certain houses are not justified in my opinion (my opinion only – I am not trying to convince anyone to follow me, so you don’t have to argue this point). Houses coops and condos might continue to increase, but I have yet to see any substantive economic data to support the price increases in New York. This doesn’t mean it can’t and won’t be be sustained; it just means that something influencing the market in NYC has changed. Many houses that were affordable to families that make a good income (top 15% in NYC) are longer afforable to such families and the neighborhoods do not exactly make you feel like you are living on Park Avenue. Hopefully, many of the original people who grew up in such neighborhoods and made those neighborhoods into great places to live are able to benefit from the price increases. As for me I am going to rent, and enjoy a better quality of life. One piece of economic data is interesting on this point, existing home sales for April showed a greater decline than anticipated, and the Northeast, for the first time, showed the greatest decline for location.
i attribute a lot of this hot market to an extremeley well oiled pr machine when it comes to brooklyn in the past year or two especially.
the lonely planet thing, the music and arts world really being priced out of manhattan and taking up shop in brooklyn as well as the comment that someone said about brooklyn being more of a destination instead of a overflow borough.
my friends come out and see my new place in park slope and they all FALL IN LOVE. i expect many of them will move to brooklyn in the coming years.
some simply had never been or had no clue that it was as nice as it is.
Allrighty then, anon 11:47. If you’re comfortable with your choice, that’s great. Just don’t make the mistake of assuming that everybody else in the country can just take on more debt, stick our heads in the sand, and keep on happily trucking into the future, our jobs and homes and quality of life somehow miraculously insulated from the larger forces at work.
Anon 11:49, what on earth are you talking about.
Re: the difference between the market in PLG/South Slope and trendier neighborhoods, could that just be a reflection of the growing gap between the rich and the poor in the city? I’m sure the Wall Street guys making record profits don’t really care if the price of milk goes up by 60 cents, but not everyone else is so insulated from the cost of living…
As always, it obviously will depend on the market concerned (type of dwelling and location). From the comments, a lot of Brownstone Bkln markets are doing well, while some are not as robust. Not my posts adds much, but hopefully will provide perspective and keep people from getting too ornery in their responses to each other… Have a nice Memorial Day Weekend everyone and enjoy the weather!
The broker who made the comment is quite established and works primarily in Park Slope, Fort Greene and Clinton Hill.
PLG was super hot in 2001. We bid 15% over the asking for one house and didn’t get it, and then bid 25% over asking on the next house and got it. Each house was priced higher than the one before. But 11:40 is correct that the current market in Lefferts Manor is pretty tepid. There was a huge burst of activity in early spring and then everything stopped. Now there are a number of houses that are sitting around and even some reductions.
Shorter Sylvia: “I’m just so mad about everything in the world now! And it’s all gotta be connected, if only I could figure out how!”
Seriously, you want to explain how lower housing prices in Brooklyn will somehow reduce national energy consumption, reverse climate change, and, I don’t know, I guess end the war in Iraq and reverse the 2000 election recount?
yes, sylvia i do think that making a mortgage payment for the next 30 years is a solid choice. your selection of the word HUGE mortgage payment, i do not agree with however. i think one should stay within the confines of their income, etc and buy an appropriate dwelling based on what they can afford comfortably. that’s what i did and my mortgage payment is less than what a comparable place in park slope rents for.
i do not advocate taking on a “HUGE” mortgage unless one can afford a huge mortgage. goes back to the comment about how self indulgent americans are.
and in 30 years (probably less as i pay more than the monthly payment whenever possible) when all is said and done, i will own my home outright instead of reading brownstoner complaining because i made my landlord rich as hell.