House of the Day: 532 3rd Street
This limestone house at 532 3rd Street in Park Slope was an Open House Pick back in March 2007 when it was listed for $2,600,000; it quickly went into contract at the asking price. Now the 18-foot-wide single-family is back on the market for $3,200,000. It’s hard to see pulling off a 20% mark-up from…
This limestone house at 532 3rd Street in Park Slope was an Open House Pick back in March 2007 when it was listed for $2,600,000; it quickly went into contract at the asking price. Now the 18-foot-wide single-family is back on the market for $3,200,000. It’s hard to see pulling off a 20% mark-up from a year and a half ago, given that there’s only been bad news for the market since then. Whatever. Nice house, though.
532 3rd Street [Corcoran] GMAP P*Shark
Open House Picks 3/17/08 [Brownstoner]
bkny: Also very interesting.
Nilso
That was point. I swear, I don’t think this building was originally constructed a single family home.
Denton:
A very interesting story.
I actually saw the house when it was first listed in 2007. Nice house, but really a 3-story (basement is probably 6 feet high only) with a width of around 18 feet. Contract was signed in a week or so at the time.
wasder – i agree that 10k a month is an insane amount of money for a mortgage. but i used to work with people that were bringing home 30k a month in income – they made about 500k a year and had humungous bonuses! i did not work directly with these people but i worked in a capacity that i saw their actual after tax income – so this is not word of mouth! many of them had huge mortgages and worked in investment banking. they were not trust fund or born rich – they had high paying jobs. if they lost their job, they would definetly need to sell. prob the case here. who knows. but 2-3k for a brownstone i would not consider those buyers the all cash wealthy folks.
MM, I was thru the post-87 Re slowdown, but I was also thru the bigger one in 1974/75. Altho I was just 19-20 for that one. 74/75, there were empty office buildings. SoHo was born as manufacturing was destroyed and left the city completely. Downtown stayed pretty empty for years.
At the time I was working in a supermarket, on my way up, so I personally was very positive. I was in a D’Agostinos serving the wealthiest of the wealthy, the Park Ave and 5th Avenue crowd. I remember people with Park Avenue addresses who bounced checks. I remember getting past doormen to try and collect those checks, and seeing gorgeous apartments, the likes of which I had never imagined. I remember some of them saying they had no money to make good on a $50 check.
I remember some extremely well dressed and well addressed women returning things and getting in my face about how they had gotten poor, so they had to do it.
I also met and dated a very lovely young daughter of some customers who were well off but not wealthy, and I met some of her friends that were wealthy. I remember another magnificent Park Ave duplex in which one of these friends told me that the amazing kitchen I was looking at was going to get some use, because her parents, who formerly ate out seven days a week, were now going to eat in a few days.
I don’t believe things will get that bad again, but they could. Certainly the stock market is just about as bad as that bear market right now. Nevertheless there is a lot of foreign money around which there wasn’t then, and more people want to come here. There are also way more tourist dollars. I won’t argue that the economy today is more diverse, because with the destruction of manufacturing, it is not.
So, while I see a 10-20% correction in RE prices, at the same time I remain bullish, as always, about the long term prospects for Manhattan real estate and Brownstone Brooklyn. Anyone who bought in the near-depression markets of 1974-75, or the down markets of the late eighties/early nineties, has been richly rewarded.
“only yesterday or the day before, someone was twitting (stupidly) DOW 8000 for his handle”
I responded too. Check it out. It’s the Biggest Sales tread.
Wow–now that I see the mortgage information it changes my tune completely. I am amazed that somebody would take out 90% financing on something with such a large pricetag. The monthly payments on that nut would be upwards of 10G per month which is a stunning amount no matter how much you earn.
Not trying to sound flippant about somebody else’s situation but that seems like shaky judgement no matter what.
For those economists out there, when do you think NYC will feel this? I’m not just talking about real estate, but jobs, restaurants, the whole enchilada. Right now, it feels as if everyone is *talking* about the crisis, and yes, I do know quite a few people who’ve been laid off (but thus far, they’re all in financial sector) but housing prices are still sky high and when I walk around the streets, local businesses/restaurants seem to be busy. I was a bit too young in the late 80s to register the impact of the Oct 87 Black Monday, and I do remember the early 90s as being a pretty moribund time, but I’m not even sure if those past examples are really relevant this time. I know the answer may be: no one knows, but some on this blog are forecasting big problems in 2009 and I’m just wondering how that timeline is calculated, or is it just inevitable that things will have to hit the fan here pretty soon?
ugh whuh – say it isn’t so.