Elliman 3Q Report: Mixed Results
Both average and median sales prices in Brooklyn ticked down overall last quarter, according to the Prudential Douglas Elliman report that dropped this morning, but the big number was the decline in the number of sales from the previous year from 3,718 to 2,298. (Inventory has also trended down.) Average price per square foot actually…
Both average and median sales prices in Brooklyn ticked down overall last quarter, according to the Prudential Douglas Elliman report that dropped this morning, but the big number was the decline in the number of sales from the previous year from 3,718 to 2,298. (Inventory has also trended down.) Average price per square foot actually rose slightly year-over-year for both new developments and resales but fell just over 5 percent from the 2nd to 3rd quarters. Co-ops were a bright spot, rising in both price and number of transactions. Williamsburg and Greenpoint also put up good numbers. One- and two-family houses in Brownstone Brooklyn did pretty well too, with average and median sales prices as well as price-per-square-foot measurements all trending up. For details, check out the full report.
Brooklyn Home Prices Drop as Banks Cut Jobs and Curb Lending [Bloomberg]
11233 – In this market, yes, I would since I think overpricing is a bad strategy in this kind of a market since it will drive away potential buyers. It’s MUCH smarter to price conservatively and hope to get some serious buyers, instead of having a pie-in-the-sky price that will result in the property lingering, needing a price cut anyway, and then suffering from the stigma of being “on the market” too long. Believe me, I’ve seen this happen to several properties already and they all went way under initial ask so the strategy totally backfired. Dittoburg is right.
11233, but you would be pissed however, if you asked eg Corcoran to sell your house at the beginning of the year, they overpriced it at 2.4 mil, even though everyone could see it was time to flatten the prices, it didn’t sell, you could of sold it for 2 mill and now you have to sell it for 1.7. Would you not?
Really, Miss M?! You woudl fire a broker who didn’t try to make the most money for you and themselves? Who would you hire?
THL!!!!!!: If my house is really worth 1 million and I ask 20 million and I have to cut the price by $19 million to sell it, I have lost $19 million. I don’t have that in my bank account??????!!!!!!! What am I going to do?????!!!!!! I own a million dollar house and I haven’t sold it and now I am broke??????!!!!!!! How did this all happen????!!!!!
HELP ME THL!!!!!!!
THL – if I had a broker overvalue a property by that much in this market, I’d fire them. Values, as we are seeing everywhere else in the economy, are relative, and can change, and they are starting to…
But where is Missmufett and 11217 ? LOL
Yeah, but let’s say I had a brownstone legitimately worth 2.5 m in Prime PS. I now go and list it with Corcoran who says list it for 2.95 m. I as the seller say yes! of course you’re the expert and I want 2.95 m. Reality is you’re probably going to have to price cut it before it’s going to sell for the proper price. That doesn’t mean the value of the house went down. Nor does it mean the buyer got a deal on it.
It just means it wasn’t valuated correctly in the first place.
Mr. B has already featured “prime” properties in Brooklyn “prime” that have taken price cuts over 10%, and this is before things really get bad, so predicting a decrease of only 5% seems optimistic (if you are a seller, that is). I think it will really depend on the property. Things in the 1-2 mil range with rental income appeal to a different buyer than the luxury properties, and I think those “mid-range” properties will take a significant hit – I could see up to 25% or more (since run-up was so high, so fast). High end ones will too, but maybe the folks at the very top will stay rich, as always.
OK, so a few BH and Gravesend houses go for over 8 mil….