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.
I agree that this report does not reflect the depth of the potential declines to come, given the rapid deterioration of the economy since this report data was gathered. As for PS going down, I don’t think this is surprising at all, given how rapidly and astronomically it shot up. While many potential sellers may panic at this prospect, I’m not quite sure why unless they unwisely used their home as an ATM, or bought with an intention to flip fast. The vast majority of owners who have owned for more than 3-5 years should do fine. Just in this short period (since 2003) prices skyrocketed, so for them to plummet back down to the same levels they were at just a few years ago would leave many owners in the same place they were in a few years ago, but make property more affordable for new, 1st time buyers.
Hey THAL,
When you call someone a tool bag, just what does that mean? Its far more abstract than say, asshat.
The fundamentals of this economy are essentially strong…
; )
It would be interesting to see what kinds of homes in Brooklyn are being foreclosed upon. I would be willing to bet a majority are new construction, 3 family Fedders houses, concentrated on the fringes of BS. Corporations like United Homes, and many fly by night developer corporations with very convenient in house mortgage companies attached to them are being investigated for fraud and deceptive lending practices. They target minority first time homebuyers with low, low introductory rates, and smoke and mirrors. Two years later, the ARM’s adjust and triple, and these people are out.
Ignorance is NOT bliss. There should be a law mandating a 5 hour home buying class, the way we mandate a driver safety class. Too many people got suckered, not because they wanted to be a statistic, but because they were told they could buy into the American dream of home ownership.
cwbuecheler – you are a loser… Great job tool bag.
Drop, baby, drop! I look am holding out hope that I’ll actually be able to buy sometime in the next few years.
Can’t comment. Just can’t get over the “Mediterranean Mess” in the previous thread.
Just wait six months longer to a year longer.
We haven’t seen anything yet.
This study lags badly. Q3 ends September 30th, so just about every contract was signed prior to the official start of the financial crisis. Q4 ’08 and especially Q1 ’09 will provide the real picture, which will be a total buyer’s market – except nobody will be buying.