Has the Buyers' Market Come to Brooklyn? Duh.
HMS Associates released some dismal, but not surprising news yesterday: Average Brooklyn home prices dropped two percent to $695,285 in Q3 of 2008 (from $708,457 in 2007), as opposed to a three percent rise in the first quarter and an eight percent rise in the second; we had one percent more sales (from 988 to…
HMS Associates released some dismal, but not surprising news yesterday: Average Brooklyn home prices dropped two percent to $695,285 in Q3 of 2008 (from $708,457 in 2007), as opposed to a three percent rise in the first quarter and an eight percent rise in the second; we had one percent more sales (from 988 to 999). Now for more not-very-surprising neighborhood breakdowns: prices were up in Brooklyn Heights and Prospect Heights and down in Sheepshead Bay, Greenpoint and Park Slope (well, maybe that’s a wee bit surprising). The number of homes sold went up in Carroll Gardens, Williamsburg and Marine Park and went down in Greenpoint, Fort Greene, and Brooklyn Heights. Bed Stuy, East New York and Brownsville weren’t included; had they been, the average prices would surely have been much lower. Poor Bed-Stuy was recently named by CNN as having one of the highest foreclosure rates in the country. We know our readers are very skeptical of numbers, but the authors of the study say they translate to one thing: a buyers’ market. Agree?
Photo by bondidwhat.
Aussie – not sure why you think I lack empathy, unless it’s because I don’t seem to have a lot of sympathy for owners who bought properties for a song and now may complain that they are only reaping 1 million in profit, instead of 1.5 (or 500K, instead of 1million, etc.? As I’ve said repeatedly, I *DO* empathize with those people who stretched in the last few years and now can’t afford their mortgages, and will possibly have to sell at a loss in the future. I sincerely hope this does not happen to a lot of people. But I also think there are many owners for whom a downturn will mean a smaller profit, not being “underwater” by any stretch, given the unbelievable price appreciation of the last decade, and especially the last 5 years. One thing I find very puzzling on an anonymous blog is how other anonymous people make personality judgments when so little is known about any of the people who post on here. None of us can possibly really know very much about others – and I’m sure we all have our share of good luck and bad, empathy and selfish motives etc. Please, let’s keep the personal attacks at bay and stick to real estate.
I’m confused, MM. What exactly do we disagree about? The What said “greed and delusion”. You seem to agree that both were at stake. Delusion would be what you refer to as ignorance.
Fool me twice, shame on me. 99% of all screwed buyers have been jerked before by not understanding what they signed.
Thank you Miss Muffett @ 1138am!
MM…I learned that the buyer of my UES condo was told by his broker that it would rent out for $3,500 or more. The doorman overheard this conversation. At the closing I realized that English was not his first language and the real estate agent was very pushy (I’m being kind). I didn’t know anything about whether he was at all financially astute but he was sold a “bill of goods” by his agent. I believe it was a cash sale if I remember correctly. That apartment would rent for $2,300 tops.
Dow, you and the What are wrong regarding those who may be going into forclosure from ignorance. Education and awareness would have saved quite a few from losing everything. Not everyone is greedy, too many are just ignorant.
If you, as a first time home buyer, are told by a bunch of really nice suits, who look like you, and treat you with respect, that you can afford this, and lay out figures, including tenant’s rent, that will enable you to do this, you might go for it. Since most people’s basic education hardly includes any financial information, they are clueless. As former renters, they understand X payment per month, not much more. Since the nice company is providing the name of a lawyer who would be glad to help out, if they even suggest it, what’s not to trust? They even tell you to take your time, and read through the documents. Please.
Mortgage docs are boring, full of small print and legalese, and are a mystery to anyone not in the business. That’s why we get independent lawyers. It doesn’t surprise me in the least that down the road, people find out they signed up for an adjustable rate that triples in 2 years, and no one told them about closing costs, points, taxes, NYC building codes and fees, etc, etc.
I have an Ivy league education, and I had a lawyer, and I was still floored by all of the fees, registrations, inspections, and costs of running a 3 family “business”. Nobody told me about boiler inspections, or the fact that ConEd charges a different, higher business rate for my common electric use. Does anyone ever tell a first timer about water bills, or paying to register your building? Thank God I was aware of all of the basic financial stuff regarding my actual mortgage.
It’s no wonder people foreclose. Can you imagine if you barely speak English? There should be a law. Greed is the least of the problems, here.
I agree with you denton but that 3 point test wouldn’t have/wont save them from going underwater this time.
“QOTD from fsrq.”
I second. It’s not too late, Brownstoner!
“You cant compare areas of FLA to NYC.”
I didn’t. If I did, please reread and quote me. I merely entertained fsrq’s Florida example when he/she tried to negate my point that we’ll never see a RE boom/bust like this before we die. FL in the 70’s/80’s paled in comparison to FL in the 1930’s. What FL is experiencing now is more comparable to the 1930’s. Of course New York is more expensive but that difference from FL was already priced in before the bubble got started.
Miss Muffett, some of what you say is true… but I do believe you have been born without the empathy gene. It’s no so much the constant self-serving predictions, as it is the insistence that others will be “fine”, when in similar circumstances you would not be.
Of course we would need to run through this scenario again… with you on the other side of the equation to know for sure…