Corcoran '07 Market Report: Brooklyn's Still Up
The Corcoran Group released its year-end market data today, and the brokerage’s stats show the ’07 Brooklyn market making healthy (if not huge) gains over 2006. The median sales price on all condos and co-ops was up 7 percent last year, to $590,000, while median townhouse values rose 2 percent in ’07, to $1.2 million….
The Corcoran Group released its year-end market data today, and the brokerage’s stats show the ’07 Brooklyn market making healthy (if not huge) gains over 2006. The median sales price on all condos and co-ops was up 7 percent last year, to $590,000, while median townhouse values rose 2 percent in ’07, to $1.2 million. The really fun part of the report, however, is its breakdown of how various neighborhoods have fared, sales- and price-wise (see chart on jump). The big winner? Brooklyn Heights, where the median price shot up 19 percent, to $1.3 million. Cobble Hill/Carroll Gardens, on the other hand, showed a median price decrease of 9 percent, going from $950,000 in 2006 to $860,000 in 2007. And Park Slope’s median price slipped from $999,000 in ’06 to $928,000 in ’07. We have a few reservations about this report, including that it doesn’t specify the total number of sales it tracks, that it only compares year-over-year values, and that it basically only covers the priciest brownstone neighborhoods—though we have to give it up for the big C for devoting so much ink to Brooklyn sales data. The article in the Times this morning about the record-setting fourth-quarter Manhattan market notes that Brooklyn’s gains were more “stable” than Manhattan’s. Brooklyn showed its maturity this year because the appreciation was much more steady, said Corcoran Group president Pamela Liebman. Anyhow, do these numbers jibe with pricing trends you’ve noticed over the past year?
Apartment Prices in Manhattan Defy National Real Estate Slide [NY Times]
Photo by threecee.
The tax return that I get due to mortgage interest is enough to pay my mortgage for 3 months!
Exactly 12:32 I will sell one almost immediatley even if I sell it at 500K I make my money back, pay off the mortgage and rent the other one for 3000 a mos until the market comes back and I get stupid money for it.
A year ot 2 from now the 2nd one could go for 900K or a Mill who knows, and when I sell my duplex my 315K investment 12 years ago made me close to 2 Mill. Long term is the way to go. This market now means nothing to me
if christine quinn becomes the next mayor of nyc, all will be fine.
she seems to be on top of things.
12:25 – So am I. I own several Brooklyn Multi-Family buildings.
I don’t care about the year to year fluctuations but I do care about the long term appreciation in BOTH rent and value.
Most people forget that there are at least 2 ways to make money… by the value AND income going up.
What they also don’t realize is that when Value stagnates in rental properties in NYC, the income goes up because there is a higher rental demand for the lack of supply.
When the Value goes up, I get the appreciation, but the rental income stagnates.
Either way, I win.
The one thing that will cause a long term loss, however, is a catastrophy or a long term recession.
I’ve already prepared for the recession. If there is a castastrophy, I doubt anyone could have already prepared for it.
Investor Lou
One big question is who will be our next mayor – don’t mayoral politics/capabilities determine a lot about quality of life in NYC? Personally, I wish Bloomberg could stay – despite the fact that I voted for Mark Green 4 times in 2001 (on 9/11, the democratic primary & run-off, and the general election) and was initially worried when Bloomberg won, I think he’s done a great job. But who will succeed him and how will this affect the fortunes of the city? As a resident and property owner, I certainly want NYC to do well, but I am also realistic that there are ominous signs about the US economy as a whole that cannot help but affect NYC. There seems to be a sentiment that somehow NYC is impervious to national trends, but various economic indicators point otherwise, and thus it seems highly likely that we are heading for tougher times in NYC, including a softening, if not falling real estate market.
12 years ago I bought my 3 family brick in Carrol Gardens for 315K. It was appraised at 500K a year later at refinancing. Several years later the reals estate market tanked remember, then it came back my house was appraised at 700K. A year ago it was apprased at 950K. Now Im converting it to condo’s. Cost of all cosntruction 250K. Im keeping my duplex and selling the other two for 650-700 2 Bedrooms, Chefs High End Kitchens designer bathrooms,roof decks and big balconies off bedroom. So when I sell one Im gettin my money back and paying construction bills off. No bad for a up and down market. Based on this my past expperience it always comes back stronger and Im living proof of that.
Someday this was is gonna end.
And the WHAT is gonna reign supreme, cause he has spoken, brace yourselves.
12:06 – There are many indicators that NYC is going to do well over a 10 year period.
In the last 2 years, we had over 44 Million Visitors. Our tourism is doing fantastic.
Inventory of available housing is actually down: see UrbanDigs.com for NYC Inventory levels as well as recent articles in the NY Times and Miller/Samuel reports.
Vacancy levels are still at historic lows around 2%. It is still very difficult to get an apt for either renting or buying.
NYC has many other industries besides Wall Street. How many can we all name? Fashion, Textiles, Entertainment, Movie Production (Steiner Studios/Silver Cup), Financial, etc. etc.
Crime, especially the murder rate, is way down.
While the level of foreclosures have increased dramatically, overall, the number of foreclosures per household is very insignificant.
Take Manhattan Foreclosures for instance. According to PropertyShark data, Mahattan had 18 total foreclosures in the month of Dec. 2007.
Do you think that 18 foreclosures is significant for the entire household population of Manhattan??
YES.. I do believe that people should be pessimistic about the overall housing crisis… Nationally. But there are many reasons to be at least mildly optimistic about NYC housing.
Investor Lou
11:21/11:36, what are you talking about? The phase-outs on the mortgage deduction (total deductible amount of interest and limit on total itemized deductions) should be minimal for someone in the market for a $1.2M-$1.5M apartment.