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]
Very What-like, BHO. Makes your arguments always seem more intelligent and well thought out.
**I can live on Skittles in my apartment in my retirement years.**
I would be very hesitant to buy into a very small coop (like a 3 unit brownstone) right now unless I was very comortable with the other owners. I would do my best to diligence the other owners and if I were not satisfied with the results I would walk. Same with a small condo, although the idea of buying into a small condo is not something I would take very seriously right now. Coops can and do get into trouble. Generalities can be accurate in this area. Categorical statements generally cannot.
“You know guys, as the economy starts to decrease its rate of fall (as it seems to be doing)…”
Pure garbage. The reconstruction of the World Trade Center was just predicted to be completed in 30 years. Apparently, The What and I are not the only ones calling this a depression.
“…interest rates are naturally going to start to go up.”
And naturally, this will accelerate the price decline.
“Factor that into your expectations of carrying costs and affordability.”
Sure, no problem. Cash savings (direct and indirect – waiting in the face of cascading prices has the same effect as saving) increases at a faster rate than interest rates increase the carrying costs. More money down on a cheaper house. Carrying costs go down.
Courtesy of Team Bear (Growl!!!)
***Bid half off peak comps***
Not convinced there’s any urgency to buy right now vs. buying later. Regardless of how much prices have or have not dropped vs. Peak, prices are still pretty high right now. Along with other reasons mentioned in earlier post on weak jobs, higher taxes,…., there is little reason to believe prices will increase. So it’s either flat or continued decline forthcoming.
Unless prices are CHEAP (vs. cheaper), I would not buy until I see prices show signs of increasing – applying lesson from catching falling knives with stocks.
It doesn’t actually make any difference to me either, Brooklynnative. I rolled my 1997 purchase into this one. It was just about a wash and now I’m acti=ually making money on it instead of shelling out higher taxes and condo fees.
I argue for the sake of arguing, as maybe you do to but in the end I’m an owner sitting happy…unless as I posted above, the higher end stuff continues to get whallopped.
Losing a couple hundred on this place to get something that otherwise might have sold for $1.4-1.6MM and may now be available at $99k is quite enticing!!!
No condos/coop ever again though. I had a great experience with the one I had but never again.
Although if someone told me in 2006 that I’d be living in Brooklyn, in a brownstone AND in Bed Stuy I would have told them they were out of their f&*&^%ing minds!!!!
BH76, coops can indeed do get into trouble. Taking over an apt and renting is a messy process, and in a small bldg can be loony. As for arrears and not paying bills, first thing I did as treasurer after figuring out the bills was raise maintenance 30%. That’s a chunk of change. Financial statements only appear once a year, a lot can go wrong between issuance.
wasder, that’s great. I know you’re loving your place, you plan on being there long term and you can continue to afford to carry it, which are the only three things that matter. With all that in place, you should have no regrets whatsoever.
DIBS, I’m an owner, not looking to buy, why would I be ‘holding my breath for a massive downturn’???
Maybe because the writing on the wall is all too obvious? I can deal with it, we bought in 92 and we’re not going nowhere. Prices go up, down, stay steady, don’t make no difference to me.
DIBS — Arrearages are in the financial statements of the coop which any propsective buyer sees (and any Board will share). Any as we have said many times, the coop has first lein and can reposses and rent if necessary. So Coops are not in trouble…Condos may very well be.