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]
“And BHO, I have to disagree with the idea that renters will save enough money after interest rates shoot up to make up the difference. My tax bill was $4,000 extra this year and probably $3,000 of that was the loss of the mortgage interest deduction since I sold my coop. That’s most of my discretionary income!”
Didn’t say all renters. I implied about the ones with enough disposable income. But that’s direct saving. Even if you’re unemployed, waiting for prices to drop is in effect an indirect way of saving. And it’s very possible for monthly costs to drop, due to price declines, faster than they rise due to interest rate increases.
“Well, my housing costs have gone *up* because I am renting.”
Not true if you didn’t piss away the proceeds from your sale or sold for a loss or broke even. Some prices are falling far faster than $36K/yr.
***Bid half off peak comps***
BHO – all you preach relates to market timing. If it’s so easy why isn’t everyone able to do it ?
As for real estate never coming back to peak comps we’ll see about that. This down turn is nothing that generations before us have not seen before. I’m not saying prices will not decline but if you think they will never return you are are mistaken. When they come back I can’t tell you but they will.
Your other comments of investing in cash and gold are retarded. How many people invested in gold the last year ???
You are clarealy a hindsight trader.
When I’m living comfortably in my retirement and you are complaining that social security has run out don’t say folks didn’t warn you.
As the saying goes, it’s easier to buy in the middle than at the bottom and it’s too easy to dance at the top.
Mopar, let’s say your tax rate is 30%. you would need to have 10k of mortgage interest paid in the yr to yield a 3k benefit on your tax return. so although you lost the 3k deduction on tax return, you also didn’t pay 10k of interest to the bank.
Well, my housing costs have gone *up* because I am renting.
More4Less, what are you talking about? I am paying the government an additional $3,000 + a year that I otherwise would have kept as part of my mortgage interest deduction.
To cut through the fog on all this talk of the economics of renting vs. buying: From a financial perspective, for someone who is faced with the buy vs. rent decision (ie a current renter), when prices are falling as they are now it is unquestionably better to patiently keep renting. It’s probably easier to state this principle rather than directly addressing the various confused ideas that are being thrown around.
There are lots of people for whom this calculus has no relevance — like any owner who is happy with his home and sees need to move, and can therefore enjoy the fruits of ownership for many years without worrying about what the market may be doing in any particular year.
i wouldn’t get too caught up in the common charge payments in Brooklyn. we have the biggest apartment in our condo (about 2000 sq ft) and pay all of $256 per month. most common charges aren’t all that high. also, as pointed out here on stoner many times, we really are not seeing tons of foreclosures in the our city. in our building, there are some rented units, and it’s quite easy to rent out your unit before you’d end up in foreclosure.
Mopar, that mortgage interest you no longer have to pay is sitting in your bank acct – earning interest the whole yr vs. waiting to realize the benefit on the tax return on April 15th.
And BHO, I have to disagree with the idea that renters will save enough money after interest rates shoot up to make up the difference. My tax bill was $4,000 extra this year and probably $3,000 of that was the loss of the mortgage interest deduction since I sold my coop. That’s most of my discretionary income! I’m not going to be able to save anything this year — assuming I even still have a job. Waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa!