House of the Day: 902 Union Street
This new brownstone listing at 902 Union Street has some nice old details but we suspect that the busy location and the condition of the house may make the $3,000,000 asking price a bit of a stretch. Don’t get us wrong: We really like the original details and overall vibe of the house but the…
This new brownstone listing at 902 Union Street has some nice old details but we suspect that the busy location and the condition of the house may make the $3,000,000 asking price a bit of a stretch. Don’t get us wrong: We really like the original details and overall vibe of the house but the place doesn’t sparkle the way a house at this price should. (Of course, much of that could be the way it was photographed, but that’s part of the game here.) What do you think it’ll sell for?
902 Union Street [AltaNYC] GMAP P*Shark
So, 11217 — as an example, if I were to buy this house for $3.0 million, I should have absolutely no problem seeing, say, 4.5% return annually? This is a very sound investment no matter what the price I pay?
That would mean a price tag of $3.7 million in 5 years…. $4.7 million in 10 year… a full doubling in 15 years… and a tripling in value by year 20?
I should buy this house because it will be worth $9 million, no questions asked in 20 years. Right? There’s no ceiling. Because there is no possibility of a restriction on the cash stream?
That’s great! I’m going to go to the bank tomorrow. “Hello Mister Banker… I’m going to only pay you $1500 a month for this $3 million Brownstone. But don’t worry Mister banker, you can have ALL of the profits in 15 years! Deal?”
> To think that home prices are just going to stay steady for
> the next 20 years is simply naive.
>
> World don’t work like that.
That’s funny. Because that’s exactly what happened after the last housing crash, no? Prices were flat for, well not 20 years, but a decade.
Maybe the world does work that way after all.
Tyburg:
Please see my post above from Shiller showing that certain areas like San Francisco are already showing double digit upticks in average prices.
From talking with some neighbors (and my parents and other generally older people), this mindset (yours) happens EVERY time we go into a recession. People like you think it’s impossible that prices will ever go up, and EVERY SINGLE TIME they do once the economy recovers. Every time. To think that home prices are just going to stay steady for the next 20 years is simply naive.
World don’t work like that.
DIBS — I’m including all of the ridiculous price tags in this city, not just the Brownstone.
OK, there are tens of thousands of people in condos/coops in Manhattan… but they need BUYERS for their 200-300% mark-up on their original purchase prices. If they only get a 20% profit, will they be able to “trade up” ?
All I’m saying is that you need the feeder population at the bottom. If the UWS condos are being priced to provide the necessary nut to buy the $1.5-$3.0 million property, then wouldn’t you agree it will become increasingly harder to find a buyer for the Condo/Co-op?! And if the UWS condos stop getting their 150% return in 5 years… how are folks gonna “trade-up” to the $2 million house when they don’t have a big chunk of cash from their sale?
It’s all about the beginning of the chain… be it ridiculous profits on the “starter” home or a big hung of cash from Grampa. Both seems like their gonna dry up to a trickle — of course their not going to disappear, there will always be rich folks — but reduced to a trickle.
This will make these absurd price tags unattainable — financially unattainable, not just soft and squishy “value” judgements. That’s why I say that a $2 million house today will STILL BE a $2 million house in 10 or 15 years. The seller will “get their money back” but there won’t be a return/profit.
Nice house, sloppy listing, premium price. If they want 3 mill, you would think they could:
> move the trash cans in front of the house
> move the plastic trash bag leaning in the kitchen
> cleaned clutter up everywhere.
It basically shows no respect for the buyer. Good luck, I say.
I live one block from Union Street.
It’s funny that the brownstoner resident idiot is throwing out insults here.
Obviously, 11217 has never driven down Union St. Yes, its a nightmare. Idiot likes to talk and talk and talk about aspects of BK in which he knows 10% or less…
***
Home prices in many U.S. metropolitan areas are nearing so-called “bubble territory,” according to Robert Shiller, co-founder of the Case-Shiller home price index. Home prices in the U.S. are “zipping up,” according to Shiller, as the S&P/Case-Shiller composite index of prices in 20 metro areas showed a 1.2 percent rise in average home prices from July to August. Certain U.S. cities, like San Francisco, have seen double-digit upticks in average price, a trend that could end badly, the economist said. Still, Shiller said that it’s difficult to determine how the rising prices could ultimately affect the market. “It is entirely possible that even with the bad news we are getting, home prices could start a major increase,” Shiller said. “What happens from here will depend on people’s animal spirits and speculative impulses.” Shiller sat down with CNBC today to analyze the sharp turnaround in prices. [Reuters]
Not sure if it’s my rose colored glasses or your logic BHO.
My house goes down 50%, I’m still living in a nice house and paying very little for it, no? Look forward to next pretty, but ultimately pointless graphic.