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.
For people looking to just wait. I bet soon prices will come down. Detoxing off Kool-Aid is hard. The greedy fucks have to complete their 12 step program.
BTW People are LEAVING NYC in droves. I had friends (yes I have some) buying houses with all the equity some asshole overpaid them. They are siting pretty plus lower expenses. New York has become a expensive Hell Hole.
The What
Someday this war is gonna end…..
Prices are rarely “flat” – especially after a boom (see stock market); once the psychology of “Real Estate only goes up” is broken, prices generally fall.
i personally think buying when prices are flat sounds like a good thing, 11:42.
you seem to think it better to wait till they’ve already started going back up.
which of course no one will notice, because prices here are already so high.
11:32 – and 20 yrs ago murders were over 1600, the city was a shit-show with manufacturers leaving in droves, wholesale abandonment in many boros and unemployment rates in excess of 10% – and NYC Real Estate was booming to record levels – so what!
Year to Year – economics is irrelevant and psychology controls
Because ppl waited on the sidelines, they missed out on cheaper interest rates just before August 2007.
After August, the Jumbo rates spike up, pricing in risk.
So the argument that waiting to buy as the price of housing stays flat is still folly.
You have effectively lost money in 2 ways. 1) Renting and 2) at least a 1% rate increase on your Jumbo mortgages.
You may have also lost the opportunity to buy because the underwriting standards have been raised.
Sometimes, it’s best to buy than to wait, even in a stagnant market.
What is rising, however, is rents. I believe 2006 had a rise in average rental by 20%. 2007 also had a rise. It will continue and very rarely will it dip.
I’m not against waiting. If I were in Detroit, I would wait. But in NYC? I would not play that strategy.
Investor Lou
I’m 11:28 again. Re: the question of NY 15 years ago vs. now – actually, I was living in NY then and I would not say it was a total shithole – especially compared to the 70s (THAT was when it was a real shithole). I was here in the late 80s when there was the same giddiness about Wall Street, and then we entered a recession and things cooled off significantly. My point though is not to focus specifically on the last market correction – I simply was pointing out that corrections DO happen – look at the rest of the United States, for crying out loud. History is full of market frothiness that can quickly turn around and suddenly, the market is very different. What I find so amazing is how brokers on this list simply do not want to believe this could ever happen, against all reason. I would reassure those brokers that at least when the corrections do occur, they do not seem to last too long (5-10 years seemed to be the last one, depending on whose counting), but the fact is, markets ARE cyclical, and there are many, many signs pointing to a downturn in NYC and buyers I think are wise to take a wait-and-see attitude. Granted, I’m already an owner, so I’m not paying a lot of rent, but even if I were, I would not buy right now – there’s just too much evidence that prices will at best remain flat – so what’s the rush??
11:21 here again – in my tax bracket, the mortgage deduction isn’t going to help me.
Depending on your tax bracket you are still “throwing away” (same as rent) 65-75% of the $ you pay in interest expenses, after the “incredible deduction”
11:21 here – I didn’t cross $300k until this year’s bonus. It took me three years to save that much. The first two years were spent paying off student loans. And no, not all of it (or even half of it) is in a money market. I may be slow to act, but I’m not stupid.