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]
Looks like we’re back to 2005 Quarter 4 numbers.
OH THE HORROR!!!!!
Wasn’t 2005 the year everyone said was the peak?
So does this mean we’re peaking again??
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. – Arthur Schopenhauer (1788 – 1860)”
Let’s see… I’m arguing with Anons from the planet Stupidtron, I feel like Dr. Who!
Let’s see, I bet you have a “Vested Interest” on beLIEving the BS.. Okay, I understand. So you thinking that we can sustain economic prosperity for the foreseeable future. That the “Credit Crisis” is over and Goldilocks is back to dancing to the strippers pole?
Ok then Asshats put your money/future on that bet. Continue to pay Mortgage on a soon deprecating asset. Go out and “BUY’ something, Brownstoner is always profiling wonderful things here. Please go out and buy, prove The What wrong…
The What
Someday this war is gonna end…
If condos are priced right they absolutely do sell. This is about overpricing. Not about the appeal of condos or all real estate in Brooklyn in general.
The only reason some condo sales have been slow in some buildings is because the finishings were cheap and ugly and yet the developer would go crazy asking lots of money for it. The Browndo conversions are really bad that way. You can buy a beautiful historic house in other neighborhoods for what they want for a tiny browndo in Park Slope, with awful finishings. Ticky tacky.
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?
The What ALWAYS tows the same line. Every snipet of negative data, or sensationalist headline and it all “The end of the world” this and “Major Depression” that. I have been on these boards for over a year and that is the only act this one-trick pony has.
Seriously, I wonder if this guy actually beleives his own garbage or does it for the shock value and attention. Either way, he is just another robot spitting out pre-programed lines to rile everyone up.
Dont you ever have a single insightful independant thought “The What”, or is that too far beyond your grasp?
“The What’s” logic:
In a depression banks fail, unemployment rises, prices rise (actually not true but WHATever), credit is difficult
Therefore
since A bank failed, some people are getting laid off, and some prices have risen
= We are entering a depression.
11:59
you have no credibility since you only post a one sided, alarmist drivel with no basis in what’s actually happening.
might as well go around with a sandwich board in time’s square, at least then we could get a laugh out of it.
Legion
He said the housing industry is in a depression.
Not the economy.
And Toll Bros has little to no effect on the NYC housing market. They are a 99% suburban builder. He is referencing their markets in Phoenix, Las Vegas, Miami, etc.
Not Manhattan and Brownstone Brooklyn, moron.
Huuu Dogie! I found this little diddy.. This is coming from the mouth of largest homebuilder in America.. Don’t take The What’s word, read it and weep….
Toll Bros. CEO: Housing in ‘depression’; recovery years away
http://hosted.ap.org/dynamic/stories/P/PA_TOLL_BROTHERS_HOUSING_PAOL-?SITE=PASCR&SECTION=HOME&TEMPLATE=DEFAULT
“PHILADELPHIA (AP) — The chief executive of Toll Brothers Inc., the nation’s largest luxury-home builder, said Wednesday that the housing industry is in a “depression” and any recovery could be two or three years away.”
He said depression, Asshats! Lets see the definition of that word..
Depression: In economics, a depression is a term commonly used for a sustained downturn in the economy.
Yep, Please beLIEve the hype. Go out and buy something… What are you waiting for? Put an offer on something! Get going!!!
The What (Did I say Depression?)
Someday this war is gonna end…
Really, What…all retailers are laying off people…???
****
*Wal-Mart said same-store sales rose 3.9 percent, while analysts surveyed by Thomson Financial predicted a 1.6 percent rise. Including fuel sales, same-store sales rose 4.4 percent.
*TJX Cos., which operates discount apparel and home furnishing stores including T.J. Maxx and Marshalls, said same-store sales rose 2 percent, edging higher than the 1.8 percent analysts expected.
*Upscale department-store operator Nordstrom Inc. reported a 10.9 percent increase in same-store sales, while analysts predicted a smaller 8.1 percent rise.
*Aeropostale Inc. was the best performer in the teen segment, with a 6 percent rise, meeting analyst expectations, helped by positive reaction to its summer merchandise.