Condo Filings Down But Definitely Not Out
While there appears to be an overall downward trend in co-op and condo offering plans filed with the state, production still remains relatively high here despite worsening market conditions. Offering plans are required to sell condos or co-ops, including in a conversion. According to information provided by the Attorney General’s office, since 2004 Brooklyn developers…
While there appears to be an overall downward trend in co-op and condo offering plans filed with the state, production still remains relatively high here despite worsening market conditions. Offering plans are required to sell condos or co-ops, including in a conversion. According to information provided by the Attorney General’s office, since 2004 Brooklyn developers have filed 1,393 offering plans for 28,499 units. Since the start of the year until mid-May, 28 offering plans for 1,771 units were filed. We asked a few developers what they think about the numbers. They predicted production would soon plummet as developers hesitate to add more condos or co-ops to an already saturated market, especially in places where it’s uncertain if prices will hold. Also, they said recent numbers are likely higher than they would be without the new 421-a law, which after June 30 requires developers to include affordable housing within their buildings to receive tax exemptions. While an offering plan is not required to receive 421-a benefits, some developers do their paperwork all at once (most file during construction) and are racing to get everything in before that deadline, said Justin Stern, principal of Manatus Development Group. From the figures above it’s apparent Manhattan has already experienced its prime this market cycle, but recent figures are still higher than in Brooklyn: Since the start of the year, 57 plans for 2,403 units in Manhattan were filed. Hear more from developers after the jump…
The developers we spoke to all had basically the same assessment of the numbers, and 421-a, not a favorite among the bunch, figured prominently. Marshall Sohne, developer of a number of projects along Columbia Street, said the tax exemption is more likely to weigh heavily on Brooklyn market-rate buyers than those in Manhattan. Despite being upper or upper-middle class, Sohne said those buyers still watch their finances closely. Condos coming on the market without the tax exemption would have a much tougher time competing with the tens of thousands that do, a significant portion of which would still be sharing the market with taxed units. He also thinks developers will choose to hold off on projects rather than go rental. “The yeilds from the rentals are usually much lower than for a condominium,” not making the project worth the effort in many places, he said. Justin Stern, principal of Manatus Development Group, which has worked on inclusionary housing projects like 15 Quincy Street and 91 Carlton Avenue, agreed. He added, “The reasons for less apps are definitely related to the downturn in market conditions and lenders’ hesitence/ unwillingness to finance for-sale product … This is, and I expect will continue to be, a very difficult time of change, the likes of which NYC has not seen in the past 15-plus years.”
421-a Revamp: A Lose-Lose Proposition? [Brownstoner]
Developer of Affordable Housing Faces New Challenge [NY Times]
“Since the government’s stimulus checks were mailed out in mid-May, Wal-Mart has cashed $350 million of the checks at its stores”
That’s your “good news” on the retail front.
UHHH….What…you left out the most important part of that article!!!
“89% of these loan delinquencies occurred in just four states…Florida, Arizona, California and Nevada”
I’d say that’s a pretty important statement you left off there…
Yoo Hoo… Hey Asshats read this. Take it all in…
Delinquencies and Foreclosures Increase in Latest MBA National Delinquency Survey
Press Release – NDS
http://www.mbaa.org/NewsandMedia/PressCenter/62936.htm
Here is the “Money Shot”..
The seasonally adjusted total delinquency rate is the highest recorded in the MBA survey since 1979, however the non-seasonally adjusted delinquency rate is not.
This is from the Mortgage Bankers Association not from the pinheads who want you to believe everything is peachy.
” The increase in the overall delinquency rate was driven by increases in the number of loans 60 and 90 or more days past due, primarily in California and Florida. The 30 day delinquency percentage is still below levels seen as recently as 2002.”
No, that doesn’t have anything to do with the New York market! It’s different here, What! People from Europe is buying Real Estate and Asshats are driving demand!
If you are a member of the media and would like a copy of the survey, please contact Carolyn Kemp at (202) 557-2727 or ckemp@mortgagebankers.org. If you are not a member of the media and would like to purchase the survey, please call (800) 348-8653.
Yep, call Carol! She will tell you to “Get Bent”!
“The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. ”
So the Asshats wont say this is BS…. Game Over!
The What (Tick… Tick.. Tick..)
Someday this war is gonna end…
NEW YORK (AP) — Wall Street rose sharply Thursday after investors got some comforting news about the economy — some better-than-expected retail sales in May and a drop in the number of laid-off workers seeking unemployment benefits.
http://biz.yahoo.com/ap/080605/wall_street.html
But BURIED in the story…
“Still, the four-week average for those getting benefits rose to 3.086 million, the highest since March 2004.”
Since two thousand and fooooouuuuuuuurrrrrr!!! Spin spin spin…
The What is dead to me.
“hmmm…..so many what’s around here…some logged in, some not…
good thing i skip all of them.”
Hmmmm… you still called me out…
Hmm… that was me too, Asshat. I forgot to log-in…
BTW I want you to buy something Condo, House, Co-Op, anything! Please buy! The What wants you to “get something”, like BENT….
The What Someday this war is gonna end….
“Because they never had to. They could throw together any piece of crap and it would move. Especially with the smaller “Browdos” you refer to. Most are small time guys that pool together some money to do a condo conversion, hire the cheapest contractors with the lowest material costs and mostly got away with it with the demand being what it was. Not so much anymore…”
Speaking of that, does anyone know how things are going down at the Shangri-La? Haven’t heard about that place in a while.
hmmm…..so many what’s around here…some logged in, some not…
good thing i skip all of them.
“I’m always really surprised we don’t see more developers offering to customize kitchens and baths per the buyer’s specs, here in Brooklyn. They do it in other cities, why not here?”
Because they never had to. They could throw together any piece of crap and it would move. Especially with the smaller “Browdos” you refer to. Most are small time guys that pool together some money to do a condo conversion, hire the cheapest contractors with the lowest material costs and mostly got away with it with the demand being what it was. Not so much anymore…