Co-op of the Day, 5.5 Months Later
This blast from the past was asking $1,250,000 when we had it as a Co-op of the Day back in early in January. Most of you thought it was slightly overpriced. Most of you were, apparently, correct. Co-op of the Day: 10 8th Avenue [Brownstoner] GMAP
This blast from the past was asking $1,250,000 when we had it as a Co-op of the Day back in early in January. Most of you thought it was slightly overpriced. Most of you were, apparently, correct.
Co-op of the Day: 10 8th Avenue [Brownstoner] GMAP
psf is meaningless
The problem with price per sq ft is that it only tells part of the story since there are other issues i.e. exact location, quality of renovation, etc. – though I agree that price psf is an important overall barometer. It’s just hard to judge state of the overall market on a psf measure. Rather, I would argue that, when places start having to have significant price reductions, or sell substantially under ask, that IS a sign of market softening – and further, I would argue that that is increasingly happening – just in the last few months, especially after the watershed Bear Sterns meltdown… The problem is, many owners/brokers seem not have gotten the message and are still trying to price certain properties as if NYC is totally immune from any economic woes. Well, it’s not – time to price more realistically! Several friends of mine need to sell and unfortunately put their places on market too high and now are having big price cuts, but I wonder if they would not have been better off pricing lower to begin with and selling fast, since the longer you’re on market, more buyers want to negotiate…
I don’t think comparing a closing price to the asking price is the best way to determine whether a market is “softening” as guest 1:19 PM states. I think you need to look at where comparable properties sold over some period of time. This apartment sold for $715 psf. How does that stack up to what prices were a year ago?
1:19 is absolutely correct!
1:19 – a price reduction on its own does not at all show evidence the market is softening (it could simply just show evidence that it was overpriced to begin with). A reduction in per square foot prices, on the other hand, does.
A price reduction of close to 200K shows a market that is softening. Sure, it’s still healthy, which is why owners on the fence about selling should not panic about the uncertainty. What owners should realize is that they can still make a healthy profit over what they paid (if they bought anytime more than 3-4 years ago) but that the days of galloping price increases are over for the time being, and that properties should have more realistic asks. I agree that 1 million for a 2 bedroom is a lot of money, but 1.25 was absurd. By the same logic, 1.5-2mil for a house (that owners often paid less than half for) is very healthy, but some owners insist on pricing their homes for far above that. But then they have to have price cuts and linger – why not start pricing things more realistically and increase the overall transactions? Brokers, are you listening? I know throwing out 1.5-2mil is a bit meaningless without a specific house in mind – but for example, there’s PS townhouse (3 story, 2 family) with tons of brokers now listed at 2.3 and it’s NOT moving – seems to me it should be 1.8, for example, based on comps. Or let’s take the HOTD on 11 St for example, priced at 1.995 when it should be 1.5-1.6. Or Corcoran’s listing at 12St bet 7/8 which hit market at 1.995 and had 200K price shop to 1.795…
1:01…
I’m 12:53 and live around the corner from here. Same size place which I bought for 250K about 10 years ago.
I’m a happy camper!
It is not just any two bedroom unit. It is a parlor floor, two-bath, fully renovated, move-in condition, prime 8th Avenue, unit.
Don’t get your hopes up about your fourth floor walk-ups on Fringe Avenue somewhere.
Who cares what the ask was, when the selling price was that much…?
It’s a 2 bedroom, folks. Over a million. That’s not a sign of an unhealthy market for Brooklyn.