Third Quarter Report: Foreclosures Down in Brooklyn
Our foreclosure rate here in Brooklyn dropped one whole percentage point this quarter, according to the Q3 reports from Property Shark. Staten Island and Queens are both hurting, with a 44% and 19% increase respectively; one in every 952 SI homes was in foreclosure. Manhattan’s in the best shape, apparently, with an 8% decrease. The…
Our foreclosure rate here in Brooklyn dropped one whole percentage point this quarter, according to the Q3 reports from Property Shark. Staten Island and Queens are both hurting, with a 44% and 19% increase respectively; one in every 952 SI homes was in foreclosure. Manhattan’s in the best shape, apparently, with an 8% decrease. The top zip code for lis pendens, however, was 11208, which encompasses East New York, New Lots, City Line and Starrett City.
I agree with itsagas
Most of the homes effected are in really bad area’s. Other area’s in brooklyn (sheepshead, bay ridge..) will probably see a small decline in value but will bounce back up in a year or so.
Brownstone brooklyn will not get effected at all!
If you put a democrate in office you will see a marked inflation which will stagnate the market for at least 5 years.
………after which annual incomes will increase to meet the increased cost of living which in turn stimulate the real estate market.
5 years from now the market will be very different.
tippingpoint: Just wondering on what data do you base the ’40-50% overvalued’ notion?
Yes, a lot of junky loans were made in the last 7-8 years, but please let everyone know how many of these have been issued in brownstone Brooklyn. I think most co-ops require proof of past income so that buyers should be able to make monthly payments without resorting to drawing down on a heloc.
As for single-family home buyers, I don’t think this area is dominated by flippers & speculative developers the way South Florida, Vegas and So Cal have been of-late. Those are the people most at-risk from dropping prices.
And although it may seem like ‘tons’ of new condos have gone up across Brooklyn, the numbers are relatively tiny compared to somewhere like Miami [and are almost entirely concentrated in ’emerging’ neighborhoods which lack prime amenities & transportation]. Time will tell, but the condo boom of recent years is nothing compared to the late 80s [see today’s NYT] & many developers will likely rent out unsold units rather than accept low-ball offers – at least below their profit goals.
I’m a big believer in down more than 15%, but down less than 30%.
You might want to clap a little louder, sebb. Tinkerbell is looking a little pale and woozy.
regarding my previous post, the price of hoses may bum me out when I need a replacement to water my garden, but have little to do with real estate. please substitute ‘hoses’ with ‘houses’.
There is a good reason that foreclosures haven’t yet hit a tipping point in Brooklyn and that’s simply because the price of real estate hasn’t dived yet. We are on the start of a decline, and that decline will start to accelerate which will fuel foreclosures.
in 2005 when SISA loans and NINA loans were being converted into CDOs, many people in the business were surprised that they were actually paying dividends even though the basis of the CDOs were “toxic waste” – and the reason for this was increasing hose prices. People could take out a home equity loan to make monthly payments. In this market, home equity loans are much harder to come by, couple that with the start of a decline in house prices and we’re at the start of a wild ride.
Real estate in Brooklyn (and Manhattan) is over valued by about 40-50%
Just wait and see.
Prices are not going anywhere.Maybe 10 to 15% down nothing more.
If even Corcoran is admitting that prices are going down, I think we can postulate that they are going to go WAY down.
Foreclosures are an extremely trailing indicator.
Remember, the downturn in Miami and Phoenix started over 3 years ago, and only in the last year have the foreclosure statistics really spiked. The downturn in NYC and Brooklyn really started this year, so you wont see the foreclosure effect until another year to two. Maybe wall street will pull out by then and we’ll be booming, but if not, as prices continue to drop around the city, the banks will start to reposses some of the homes that they own, and you will see a change in foreclosure statistics.