Elliman: Brooklyn Market Improved in 2nd Quarter But...
Sales volume in Brooklyn leapt 20.4 percent between the first quarter and second quarter of 2009 and the median price of co-ops and condos ticked up 2.9 percent, according to a report out this morning from Prudential Douglas Elliman. “It suggests there was pent-up demand from unusually low activity,” said Jonathan Miller, CEO of real…
Sales volume in Brooklyn leapt 20.4 percent between the first quarter and second quarter of 2009 and the median price of co-ops and condos ticked up 2.9 percent, according to a report out this morning from Prudential Douglas Elliman. “It suggests there was pent-up demand from unusually low activity,” said Jonathan Miller, CEO of real estate appraiser Miller Samuel, which compiled the report for Prudential Douglas Elliman. Before everyone breaks out the champagne and declares the real estate market in recovery, though, the report also notes that volume was off 29.7 percent versus a year earlier. Prices were also down dramatically from a year earlier; for example, the average price of a one- to three-family home in Brownstone Brooklyn fell 15.9 percent. “Unemployment is still rising, credit has not loosened and we still have a very weak economic environment,” Miller said. Click on chart above for larger view.
Brooklyn Market Overview 2Q 2009 [Elliman]
Home sales in Brooklyn, Queens rise as prices tumble [NY Daily News]
Glimmer of Hope for Brooklyn Market [NY Post]
Don’t argue with the “Money Manager”! Back to the peak in 3 yrs!
Hey Tinarina
If you domnt mind me asking how much did you pay in 1997 and how much is it worth today?
The consumer credit economy is dying. The service economy is starting to die off as well. What is the replacement? What will amp the economy back up to the 2007 level? Tech? Finance? Selling each other french fries?
Dave,
Nobody disputing what Kris is saying and we are all believers in owning your own property or we wouldn’t be on this site.
I just disagree with completely irrational expectations of a quick rebound back to insane bubble prices. Did tech stocks ever rebound back to the 2000 prices? Will they ever on an inflation adjusted basis?
“if you can buy for less than it would cost to rent a comparable pad…”
Well, ya can’t (don’t forget to amortize the inevitable loss with the monthly nut – loss is cost). Not by prevailing figures.
“If you have a long timeline, the math will most likely work out nicely in your favor.”
But ya don’t. You’ll never see 2008 prices in 2008 dollars again in your lifetime. It’s a once-in-a-lifetime boom/bust. Something like this happens once every century. In inflation adjusted terms, the market will only recover to a fractional amount of the recent peak in any foreseeable future worth anaylyzing. None of our timelines are long enough unless you’re looking out for your great great great grandchildren.
***Bid half off peak comps***
“Maybe get off your lazy ass and actually pull up the report and read it.”
I skimmed through it, my dude. What did I miss? Even you said that pure brownstones are still -15% down, only SLIGHTLY better than the general 1-3 fam. Please tell me, DIBS, where is there optimism in the YOY numbers? WHERE?
The rolling YOY Case-Shiller has been falling for several consecutive months now!
***Bid half off peak comps***
Kris, you are correct. But be prepared for a lot of disbelievers!!!
Total anecdotal observation: We were looking to buy in early 1997 in Fort Greene/Clinton Hill. By summer of 1997, local brokers as well as our RE atty, who lived in FG, said prices were finally back to 1987 levels. We bought in Aug 97 in CH and prices began increasing at warp speed; in 18 months, our house, with some improvements, had doubled in value per a refi appraisal.
Granted, FG/CH were considered alot more fringe-y than say, Park Slope or Carroll Gardens at the time, and I don’t think suffered such steep declines in that 10-year period.
Not sure how this all translates (if at all) to the present, as the buyer profile and Brooklyn itself has totally changed since then.
Here’s another thought: we all need a place to live and it’s not gonna be free regardless of whether we rent or buy our living spaces.
There are myriad factors at play, but when all is said and done: if you can buy for less than it would cost to rent a comparable pad, there’s no reason not go for it. If you have a long timeline, the math will most likely work out nicely in your favor. Your place will most likely also be nicer and better maintained than if you were beholden to a landlord.