Douglas Elliman Q1 Report: Down and Downer
Not surprisingly, prices and volume in Brooklyn were both down in the first quarter of 2009 versus both the Q4 and Q1 2008, according to the latest market report from Douglas Elliman. The median sales price fell to $474,600 from $490,000 in the prior quarter and $527,000 a year earlier. Likewise, the number of transactions…
Not surprisingly, prices and volume in Brooklyn were both down in the first quarter of 2009 versus both the Q4 and Q1 2008, according to the latest market report from Douglas Elliman. The median sales price fell to $474,600 from $490,000 in the prior quarter and $527,000 a year earlier. Likewise, the number of transactions was 1,186, down from 1,846 in the fourth quarter and 2,761 in the first quarter of 2008. The median price declines were consistent across all property types: Condos (-8.6%), Co-ops (-11.4%), 1-3 Family (-10.6%), Luxury (-9.2%). East Brooklyn was by far the hardest hit, with median prices plummeting 25% year-over-year. Townhouses in Northwest Brooklyn fared pretty badly, too, with median prices falling to $1,087,500 from $1,287,500 in the fourth quarter and $1,200,000 a year earlier.
Market Reports [Douglas Elliman]
Is BHO criticizing himself?
Why, yes, I am a lovely tenant. 🙂 Thank you, Miss Muffett.
“and buy before the year is up, the worst case scenario is you lose one month security deposit right?”
Unfortunately, the worst case scenerio is she doesn’t rent the apt and sues me for a year’s rent.
“Your monthly costs are now less than when you owned because you’re sitting on the proceeds.”
That makes absolutely no sense, BHO. What you meant to say is that ownership costs include the net profits or losses between purchase and sale divided by the months occupied. In boom times this figure was a negative cost and therefore a credit or gain. When everything collapses this cost is zero or positive which takes away the purely financial benefit of ownership.
***Bid half off peak comps***
bwaaaaaaahhhh…. how could I misss a good old Bull v Bear ruckus?!
“BHO, I sold at a profit but my monthly housing costs have increased about $3500 a year.”
What is it with you guys about monthly costs. You don’t put money down (not 20% of value) to rent. Your monthly housing cost is debt service, maintenance AND down payment divided by the months you have owned the property. Your monthly costs are now less than when you owned because you’re sitting on the proceeds.
***Bid half off peak comps***
And Mopar, if worst comes to worst and you have to sign the lease, and buy before the year is up, the worst case scenario is you lose one month security deposit right? In this market, with the savings you could be looking at when you buy, that is a small amount in the long, long run. But I agree with more4less that your landlord should be happy to keep you month to month if you’re a good tenant which I’m sure you are!
if you continue to pay the rent on time, hard to see a landlord going to boot a tenant who doesn’t want to sign a 1 yr lease. Hello, econ stinks. You know it. Sure landlord knows it too.
Thanks, Miss Muffett. You too!
More4Less, actually I negotiated today with our landlord to keep the price the same. But now they want us to sign a one-year lease and I am freaking out.
Mopar, there’s no reason to believe prices will surge on us anytime soon. At worst, prices flatten out or better, it continues to drip. So time is on our side. time to save more $$$, time to find perfect property, time to assess job security, ……
hope your landlord didn’t force through a big rent increase on you
Well Mopar, different strokes. It sounds like the areas you’re looking in have already fallen farther and thus it may indeed be a good time for you to buy esp while rates are low. As you note, interest rates affect us less since we are trying not to finance too much – so if anything, higher interest rates will work in our favor by putting further downward pressure on prices. Just remember that you are in a good position to be renting now, and don’t feel any pressure to rush – time is on your side (prices are certainly not going up anytime soon, and have further to fall), so your priority should be finding the property you love the most within a budget you can afford. Whatever you decide, I wish you luck.