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 problem with the rise in oil prices is complicated, and in the short term may actually benefit NYC to a degree.
The real issue is the effect of rising costs of oil on prices in general and how that supports the vast system of usury we have in place today. Make no mistake, the wealth in NYC is directly the result of inflationary fractional reserve banking practices and the debt obligations that result.
Rising oil prices have a ripple effect through the economy. Oil powers farm equipment. It powers the trucks and cargo ships that distribute goods. It fuels the jets that make international “business” possible. It is a major source of power for the endless retail stores out there. It is the fuel that most Americans rely upon to get to work every day.
Rising oil prices effectively reduce the amount of income available to pay debt.
While it is true that per capita expenditures on oil is lower today than a generation ago, the percentage of income most entities pay in interest is much higher. The American citizen pays much more of his income as interest than ever before. Most governments entities in the US have huge debt obligations unheard of in past generations.
When push comes to shove, Americans will have to pay for food and gas to get to work. Paying the usurers will be a secondary concern when oil prices result in higher costs for the basics of life.
New York City is not like it was even in the 1980s when you had major corporate headquarters here for a variety of industries.
Will the bankster class and the lawyers who serve them be able to get multi-million dollar bonuses when no one will shoulder their debt – debt they create by stealing money from the people?
The answer is a resounding no.
The price of oil and the international banking system are directly related. The banksters can only continue to thrive as long as cheap oil exists. In the end – New York City today is a one trick pony. When the banks go down, the entire city will go with them.
New York City’s only salvation is the vast public transportation network may result in the city transitioning to other industries in time, but it will be a rocky road.
“Last night the gas station was empty and McD’s at Atlantic and Vanderbilt. Flatbush was a fucking ghost town too.”
The What stalks the streets at night, hungry for victims.
Right on 10:20 the pathetic losers need to move to Camden NJ, they can get something thier they don’t have to work for. NY is for winners work and get ahead if u can’t hack it stop complaining and move into a housing project where u belong, your probably on ssi or welfare anyway becuase your a lazy loser. Anyone with half a brain and willing to work thier asses off can make it here in nyc.
Well I’ve saved and could cut a check for a down payment tomorrow. I live in a great, and cheap, rental in Brooklyn Heights. I need a third bedroom but basically the opportunity cost of sinking my cash into an apartment right now is pretty huge, and the upside uncertain. New York is a safer real estate market than Dayton Ohio, but if even BROKERS are predicting flat prices over the next year or so, then I’m certainly not losing anything by sitting on the sidelines and waiting to see what happens.
And it’s not just buyers who are sitting on the sidelines – there really isn’t much available right now in prime Brooklyn and I suspect that that is largely because of the market uncertainty. People who can afford not to sell now aren’t. My guess is that things will stabilize in the economy and the overall housing market in late 2008 and then significant numbers of both buyers (including myself) and sellers will return to the market at flat prices over 2007. However, there is still a chance that prices in NY will will decline significantly in 2008-2009 as more sellers accept that they will not be able to get a big increase over 2007. Real estate prices are historically very slow to respond to downward pressure, especially in a market like NY where there are significant mitigating factors (foreign buyers, co-op boards, etc). Just because NY has so far dodged the bullet doesn’t mean it will continue to do so. So no, thank you, I’m happy staying out for now.
I’m not sure why ppl think that house prices are going to drop because of rising Oil prices.
When Oil prices rise, causing a rise in Gas prices, people will continue to migrate into areas where there is better quality of public transportation so they can reduce their usage of gas if they don’t get rid of their cars.
Logic dictates that Cities like NYC which has very good public transportation will increase in housing prices over the long term.
On the short term, it may drop, but I’m afraid everyone that is waiting for a crash might as wait until pigs start flying.
– Investor Lou
Did anybody take a close look at that excel spreadsheet?
A couple observations:
1. Incredible inconsistency in price changes within same neighborhoods based on size of apartment.
2. Plenty of categories with negative numbers there. Probably the first year in many we’re starting to see negative numbers (i.e., price declines) at all.
Point is, it’s hard to reach any real consistent conclusions based on this data.
Notice in the chart how many categories have average sale price = median (BH, CH/CG, Boerum Hill ’07 studios and Boerum Hill ’07 3+BR, FG/Clinton Hill ’06 3+BR). Barring very unlikely coincidences in the sales data, that tells me they only had data on ONE sale for each of those apartment types (and Zero sales for all the N/A cells). Not much to give an accurate indication of trends.
So sadd you idiots really think the market in NYC is going to collapse. Human nature – greed and hope ensure constant fodder for landlords out there.
Hoping prices will halve so you can finally afford the home you deserve is foolish and will make sure you live in your crappy rental for the rest of your pathetic existence. Suck it up, stop spending hundreds of dollars every weekend going to clubs and bars, save up diligently and buy something. Your dreams of living your current lifestyle in the hopes that prices will come down to meet you will not work in the greatest city on Earth.
The sooner you realize this the sooner you can do what it takes and stop being so selfish and foolish.
Once the new downtown bklyn starts building Ratner City the price’s will skyrocket