Condo of the Day: 535 Dean Street Penthouse Price Cut
Can you say Atlantic Yards Effect? There’s no other reason we can think of (other than that pesky global financial crisis, of course) to explain why this 1,400-square-foot penthouse at 535 Dean Street in Prospect Heights just had to cut its asking price from $899,000 to $799,000. In its current configuration, it’s also not much…
Can you say Atlantic Yards Effect? There’s no other reason we can think of (other than that pesky global financial crisis, of course) to explain why this 1,400-square-foot penthouse at 535 Dean Street in Prospect Heights just had to cut its asking price from $899,000 to $799,000. In its current configuration, it’s also not much of a family apartment either. Still, you’d think there’d be at least one childless buyer out there who would be digging the open space and views (and rather low monthyl maintenance of $701). What gives?
535 Dean Street [Corcoran] GMAP P*Shark
i saw this place, it’s got a bizarre layout with a freakishly small bedroom, that’s why.
There’s no reason to expect prices to come back to 2000 levels, since there’s surely been some small improvement in fundamentals (European buying, neighborhoods like Clinton Hill and Prospect Heights being much better to live in these days), etc.), and in any case in ordinary times you’d expect house prices to rise about 3-4% a year (not adjusted for inflation, though). That suggests a house you bought in an improving neighborhood in 2000 for $1 million would be worth $2.1 million at the end of 2008 — that’s a 10% compounded annual increase.
That also means that housing prices have 30-35% declines ahead of them. That could happen all at once, but much more likely is that prices will stay relatively flat for five-ten years, with inflation eating away all the gains.
Yet another reason not to buy at these prices.
2:21…
I would love to know how many renters out there in NYC have turned a 30K profit on 60K.
I don’t know many renters who have more than about 500 bucks in their bank account.
You people who talk about this amazing renting savers are talking about 2% of the population.
Most renters save NOTHING.
If they did, they would have used it for a downpayment when houses were cheap 8 years ago.
Talking about a theory of investment and then what actual people do are two TOTALLY different things.
People don’t save. Period. The U.S. has a negative savings rate and 75% of the population has less then 10K saved for retirement.
So you can say all you want that someone could have made more had they invested that money, but the fact is THEY AREN’T!
Becoming a homeowner has forced me to save because it puts me on a 30 years schedule for the same payments every month. I save for a rainy day, I save for maintence costs, I save for a trade-up, etc. I now have WAY more money saved now than I ever did as a renter and I believe a lot of people are like that.
I look at my renter friends, and most of them have 40K in credit card debt and use their overdraft on their checking account like it’s nothing.
“I bought my Brownstone in 2000 in Prime North Slope for under a million.”
Goody for you. You’ll probably keep most of your value. Elsewhere not so much.
2:18, but on the $60K that you put down as a down payment, over 5 years you’re likely to make around $30K in investment income, so it’s a wash at best. If you put down more than 10%, then the economics tip even more toward renting.
I bought my Brownstone in 2000 in Prime North Slope for under a million.
If you think those prices are coming again you are seriously dellusional.
Two on my block have sold for over 3 million this year. One for 3.4 million.
Think about how much of a percentage drop that is and get back to me.
12:59 – you can’t equate monthly payments to rent with those on a mortgage quite like that. For that $3000/month you pay to rent, its gone. For that $3000/month mortgage payment, every month you’re repaying about $400 of principal, hence increasing your home equity. At the end of 5 years, your left with nothing as a rental; as an owner you’ve accreted $25K
“There will be no 2000 or 02 prices here again.”
I think there will.
So there.
Hah!
I think in NYC, we will just stay flat for a long while (maybe 3 years).
There will be no 2000 or 02 prices here again.
Seriously people. Wake the eff up.