Corco: More Listings, More Absorption
Corcoran just sent out to its brokers and clients some fairly bullish market data about the Brooklyn market. As the accompanying charts show, the number of co-op and condo listings on the market has roughly doubled in the past year while the number of absorbed listings (which presumably means sold listings) rose 26 percent between…
Corcoran just sent out to its brokers and clients some fairly bullish market data about the Brooklyn market. As the accompanying charts show, the number of co-op and condo listings on the market has roughly doubled in the past year while the number of absorbed listings (which presumably means sold listings) rose 26 percent between November 2009 and November 2010. Sales prices appear to have remained fairly steady, except for studios, which rose almost 20 percent on a price-per-square-foot basis. Here’s some unofficial commentary about the North Brooklyn segment of the market from one broker that was forwarded to us: “We’ve seen inventory in Williamsburg begin to show signs of drying up… especially as many new projects which buyers hoped would be for sale have opened up as rentals. The majority of dead construction sites are now showing signs of life, and most are intended to be rentals…leading us to believe that once waterfront properties (EDGE, Northside Piers) sell out, there will be little left to buy.”
Also, let’s not forget the secret words: SHADOW INVENTORY. Williamsburg is full of it.
new supply takes a long time to come to market, though the pipeline is growing…
i have been predicting a low supply environment for some time, and it is coming this has happened for decades in NYC you get too much supply, then too little
supply/demand very inelastic in residential as it takes so long to deliver product you’ll see prices rising in 12 months or less even if rental inventory comes on the market, it won’t come on all at once or building wide, but bit by bit
this wasn’t written by a broker but by professional market watchers
“if the buildings turn into rentals and apply for tax benefits, which most do, they have to stay rent-stabilized rentals for a long time… the report could have mentioned that, but that is what happened with at least 3 developments that I know of.”
yeah – it’s surprising no one realizes that all these new big rental buildings are all rent stabilized, so there’s no chance they will come back on the market as condos in the next 20 yrs or so.
The developers are probably holding out on converting to rentals to see if the legislature will eliminate the rent-stab requirement that was the issue in the Stuy Town decision. I read somewhere that the landlord lobby was hopeful that with the change in Albany they could force a change by linking the issue to renewal of the rent stabilization laws (I think they are up for renewal in 2011).
if the buildings turn into rentals and apply for tax benefits, which most do, they have to stay rent-stabilized rentals for a long time… the report could have mentioned that, but that is what happened with at least 3 developments that I know of. Their statement makes sense if that is what has happened with most of the larger buildings.
i don’t know williamsburg that well, but i’ve seen a ton of condos start selling, even in the south williamsburg by grand street and union area… most of which are the mezzanine lofts designed by scarano.
Considering the fact that almost all of the inventory in Williamsburg is brand new construction and the ppsf is still below $600, I’d say that it’s still got a long way to go.
And to say that the stalled sites –and there are many–are going to be revived and made into rentals is exceptionally optimistic. I’m not saying there’s no market, but from a real estate investment perspective, why would you want to buy something in any area whose inventory just keeps growing? It’s like collecting beanie babies or something. But I like Williamsburg! just not for buying purposes.
Who is the moron from Corcoran who wrote this??? Just because the units have become rentals doesn’t mean they can’t still return to inventory.
I guess there’s no intelligence part to a broker test.
dibs, especially since Willamsburg leads the pack in stalled developments. Not to mention Edge and NSP are on track to take years and years to sell out. The edge has 360 units, 17 sold; at this rate, they’ll have apartments to sell for the next 40 years.
So 101% increase YOY increase in inventory to a broker means “signs of things drying up”. Such cogent analysis.
Glad things are all cleared up now.