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.
Speaking of mass psychology, I’m thinking with absolutely everyone predicting further RE declines, it must be time to buy 🙂
Homeowner classes? Ahh, I hate that kind of forced sh*t. But I see where MM is coming from.
You could finish the class in about 5 mins, of course.
1. Get your credit rating to 750;
2. Put 20% down and have a year mortgage payments in the bank;
3. Only take out a fixed 15 yr or 30yr mortgage. All the other sh*t should be illegal.
If you can’t do 1-3, stay renting!
Agree with lechacal. Sebb, as usual, is grasping at straws since he can’t bear the reality of what is happening. Prices will go down more than “modestly” – just wait.
“A real buyers market comes when sellers shift from resisting selling at a declined market price – because they believe a higher price will come sooner rather then latter to a situation where sellers are willing to take ANY market price because they believe that the future market price will likely be even lower.”
QOTD from fsrq. Very astute. I agree that we are not in a buyer’s market yet.
In the next six to twelve months, inventory is going to slowly increase in prime Brooklyn until there is a glut of unsold inventory, including some real high-end stuff. Then we will be in a buyer’s market. Until then I hold on to my cash and wait.
sebb your last paragraph is spot on. South Carolina will probably be fine since the only business down there is tobacco. 🙂
BBZZZZZ! Wrong. People are getting laid off in droves! Most of the newly transplanted Asshats are going back to flyover land. Maybe they can start doing something productive again like helping with the harvest.
People are not going anywhere “what” . Yes some people will leave of course. But most people will stay . If you think the financial world looks Bad in NYC how do you think the job outlook is in South Carolina?
We must realize prices will dip slightly but overall we will always be a first rate City and that will keep us strong.
DOW8000SP800
You cant compare areas of FLA to NYC. People work here there will always be a demand to live here. Get a clue. Prices will probably come down more obviously but armageddon is not coming.
“Dow – you ignore the Florida RE boom of the late 70’s early 80’s.”
Doesn’t compare to what’s in store for FL now (what was drop from the peak, -50% or less?). Have to turn to the 1930’s boom/bust (more than -50% drop).
“fsrq and DOW8000SP800 – neither of you have any facts”
Facts:
http://tinyurl.com/g9vf4 (Price History Graph)
http://njrereport.com/80sbubble.htm (80’s Bubble)
Population is flat at approximately 8 mil
Negative savings rate not seen since Great Depression
Unemployment about 10 percent and rising
Big five I-banks no more
Bailouts approaching $5T
Unprecedented intervention
etc…etc…etc…
fsrq…on this one you’re spot on…”In many places houses actually cost less than their replacement cost.” My Chubb policy will attest to that!!!!