Foreclosures Rise as Condo Prices Sink
There’s plenty of bad news about the state of the market today. First off, the Post has a report that foreclosures in Brooklyn and Queens spiked in October. Brooklyn foreclosures were up 50 percent this October over 2006, going from 815 to 1,200, according to data from RelatyTrac. (Queens foreclosures, meanwhile, shot up a frightening…
There’s plenty of bad news about the state of the market today. First off, the Post has a report that foreclosures in Brooklyn and Queens spiked in October. Brooklyn foreclosures were up 50 percent this October over 2006, going from 815 to 1,200, according to data from RelatyTrac. (Queens foreclosures, meanwhile, shot up a frightening 120 percent.) And the new development market isn’t looking all that great either, according to an article in today’s Sun. About a dozen condos across the city have slashed prices by as much as 13 percent over the past few weeks, according to StreetEasy data. In Brooklyn, there were price cuts at Bushwick’s Evergreen Terrace and The Washington in Prospect Heights. “A lot of this is about staying alive,” says Prudential Douglas Elliman’s managing director for new developments, Andrew Gerringer. “You want to hang in the game, give an adjustment to your pricing and keep moving.”
B’kyln, Qns. Foreclosures Soar [NY Post]
Signaling Cooling Market, Prices Cut at New Developments [NY Sun]
What's Your Take? Leave a Comment
It’s not just the price drops — wait for someo of the higher-profile developments that are only 40-50% sold to start renting. And I heard the city is interested in picking up some of those units. If half of the owners wanted to “invest” (flip or trent if they couldn’t sell), they are now going to be competing with the developer and or others. And pity the poor people who thought they would be living in a luxury condo.
Hmmm, it seems like most of the serious price drops mentioned were in units over $1 million. Yes, sure, that could trickle further down into the market. But there’s probably still a large pool of buyers with good credit who are looking to buy in the lower price ranges (+/- $.5 mill) that might keep that area of the market more competitive.
But I agree with 9:38 and Bob Marvin. One day drops and surges in the Dow don’t mean much for the big picture or anything. And short of having a crystal ball, none of us can know for sure what’s going to happen in the RE market.
cool Bob
some people win the lottery
I’ve been through this before–starting in 1975, a few months after I moved into my house, when the City ran out of money. It had been EXTREMELY difficult to get mortages on Brooklyn brownstones when I bought my house in late ’74 and it became virtually impossible in the aftermath of the NYC ‘fiscal crisis.
For a while I almost thought that my family and friends, who thought I was crazy to buy an old house in Brooklyn, instead of a nice modern house in the suburbs, might be right–they weren’t. My nightmares, that my house might become worth less than the 40% downpayment banks required on old city houses, never came true
Ha.
Hope all the scumbag developers lose their shirts.
(sorry, Mr. B — I know they’re you’re advertising revenue)
“No worries, the dow is up, so everything is great.”
Huh?
Dow Last Month: -4.37%
Dow 3 Months: -5.08%
Year to Date is still up a good 6%, but it’s lost a lot here in the second half of the year. I’m always confused by people drawing conclusions from daily swings in the dow.
And so the change in psychology continues…
2005: Buy now or be priced out forever
2006: We’re in for a soft landing
2007: Who cares about price drops and foreclosures. Most inventory was overpriced anyway
2008?
I wish a bank would forclose on my psycho neighbor in my building.
Mr. X
some of those buildings in some nice areas were over priced. i hope they would price them according to what it is really worth now days.