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]
I won’t get “boiled to death” in this market, Snark. More like striking while the iron is hot. I’ve been doing this since you were in diapers. MY LTV is about 40% and I’m starting to get interested in other propereties.
See my last post.
I don’t have any buyer’s remorse biff. After the agony of the decision was over, I have settled into a nice routine with the house and the reality is that I am paying less on a monthly basis to live here than I did in my coop. I am also enjoying immensely all of the “suburban” pleasures of home ownership–three bathrooms, a deck and barbeque, and gardening. However were i to be buying now it would be that much more difficult to pull the trigger for sure.
‘…there is only a finite number of brownstones, their not making anymore, and therefore prices won’t go down.’
My personal favorite. How ’bout the bonafide, restored and rent decontrolled/destabilized brownstones. Those are still in the process of being made. Nowhere near capacity. Shadow inventory is mounting behind a cracked dam.
“Hardly half off recent comps.”
Collapse hardly over. Stop looking at the rearview mirror and focus on Lombard St (no, not Philly).
“not all property classes will be equally affected”
I will vehemently stand by my assertion that they will. Everything up +200% trough to peak, everything down -50% minus. No free lunch for no ‘hood.
“very few people are trying to buy OR trying to sell right now”
Stalemates are a permanent fixture in both peaks and troughs. No suprise here.
“buyers should continue to wait if they can (although I know first hand how hard that is if you have deadlines like a new baby)”
They ALWAYS can. Some have no means, and therefore no choice, to do otherwise. Solution: Rent a duplex. It’s what you do anyway when you buy a brownstone. Only no money down and cheaper monthly costs compared to those with 20% down on current comps. Such rents are falling while inventory is rising. Or, temporarily leave Brooklyn and come back when everybody says, “real estate is a bad investment”. I heard that a lot in the 90’s.
***Bid half off peak comps***
If I see a really great place on a nice street in Ft. Greene or Boerum Hill come down so much in price that I want it, I will sell my Bed Stuy place at a loss to upgrade.
I have no problem with that.
I will not, however, tie myself to the F train in lesser neighborhoods like PS. 🙂
I recognize my last two sentences at 10:18 switched from a seller’s position to a buyer’s position. I should have more clearly separated the thoughts.
DIBS, pardon me for saying so, but you are sounding more and more like a classic example of a “boiled frog.”
And wasder, hopefully my last post doesn’t add to any buyer’s remorse you still have. At the time you went into contract, I was still a member of Team Bull and would have done the same. However, at this point in the game, I would advise anyone looking to buy to wait it out unless they absolutely must find another place.
Brooklynnative, you and BHO and MM and a few of the others are getting a little blue in the face holding your breadth for the massive downturn. I would’t want to see your heads explode.
You know guys, as the economy starts to decrease its rate of fall (as it seems to be doing) interest rates are naturally going to start to go up.
Factor that into your expectations of carrying costs and affordability.
Petebklyn, just as I might be underestimating the NEEDS of some to sell at this moment (of course some people HAVE to sell), I still feel there is a large segment of homeowners at this point in time who still have the option of waiting to sell and are not yet desparate. If one is selling because of personal WANTS, don’t you think it’s possible some of them are holding off in hopes the market will stabilize or even turn at some point in the future? If I was feeling cramped these days with a family in an apartment, I still think I would do my best to hold off and wait until prices drop further. In other words, if I could possibly save hundreds of thousands of dollars by living in a smaller space for less than a year, I would do it.