Last Week's Biggest Sales
1. PARK SLOPE $3,700,000 946 President Street GMAP 946 President Street was a popular HOTD in February that we said was “dripping, absolutely dripping, in period details.” This beauty was built in 1886, designed by Charles T. Mott, and got a new kitchen, modern HVAC and updated bathrooms. We thought 946 President may get close…
1. PARK SLOPE $3,700,000
946 President Street GMAP
946 President Street was a popular HOTD in February that we said was “dripping, absolutely dripping, in period details.” This beauty was built in 1886, designed by Charles T. Mott, and got a new kitchen, modern HVAC and updated bathrooms. We thought 946 President may get close to $3,795,000, average reader appraisal landed at $3,446,336. This home hardly sold below ask. Entered into contract on 10/12/10; closed on 11/12/10; deed recorded on 11/23/2010.
2. PARK SLOPE $2,800,000
100 6th Avenue GMAP
Here’s another HOTD, only from October of this year. The owners triplex is boasting five bedrooms, lotsa fireplaces, and a nice garden apartment to boot. To nab its asking price of $2,950,000 we said this home better be pretty close to perfect. Guess the buyer thought so! Entered into contract on 10/28/10; closed on 11/15/2010; deed recorded on 11/22/10.
3. WILLIAMSBURG $2,240,150
22 North 6th Street, #PH1-C GMAP
This purchase got lots of ink last week, as it was Williamsburg’s most expensive condo sale this year. LED Artist Teddy Lo purchased this three-bedroom, three-bathroom, private terrace penthouse in The Edge’s taller tower. And don’t forget those Manhattan views! Entered into contract on 3/4/2010; closed on 11/4/2010; deed recorded on 11/22/10.
4. BOERUM HILL $1,925,000
112 Butler Street GMAP
112 Butler Street is the modernly-designed home in Boerum Hill, built in 2007, and our HOTD in August. The two-family home, at 3,150-square-feet, hit the market with a price tag of $2,250,000. We thought that was a little high, and in the end the final price did get cut… but not a whole lot. Entered into contract on 11/8/2010; closed on 11/22/2010; deed recorded on 11/26/10.
5. PROSPECT HEIGHTS $1,691,500
411 Sterling Place GMAP
This is a three-family house that was first on the market more than two years ago with an ask of $2,700,000, according to StreetEasy. From then on this property was on and off the market, taking price drops each time. It was listed in April for $1,799,000 before it finally sold. Entered into contract on 11/4/2010; closed on 11/4/10; deed recorded on 11/24/10.
Photos via PropertyShark and StreetEasy.
lots of rich folks still live and want to live in NYC, BK Prime. we aint talking about avg joes here. I’ve been waiting for prices to drop but it hasn’t. CURRENTLY, mkt is still very strong
“The only people who pump desperately brooklyn re in bstoner are those who bought high.”
More true words have never been spoken. Except [the inevitability of] half off.
***Bid half off peak comps***
“i’ll stick to actual comps when measuring where market is today.”
That would be Case-Shiller. An index of actual comps (like ACRIS for condos, coops and 2+ fams). Not today but two months backward looking. The trend tells us that today is likely worse.
“These sales and the one comp from peak show the market has held up relatively well in Brownstone Brooklyn. This is very clear.”
That’s what double dips do. Bamboozle you into thinking the worst is over when it isn’t. Same propping up was attempted after the crash of ’29. Remember the FDR quote fromm 1931, “prosperity is around the corner”. How’d that work out over the next 9 YEARS?!
***Bid half off peak comps***
The segment of the market which bought during the bubble and saw the least price decrease sends their offspring to private schools as brooklyn public schools are not up to par even in the best nabes. The segment of the population which stressed to rent or buy a condo/brownstone cell in a prime nabe during the bubble is hopelessly underwater. Get a perspective.
“we continue to live in uncertain times”
Uh, not really. An imminent collapse is certain.
“BHO, wasn’t your original position that you would call bottom when CS showed Y-O-Y increase?”
Yup. My theory has failed. We’re back in the red.
I underestimated the corruption we have in the white house (extortion of FASB accounting rules, secret attempts at overturning black letter law i.e. interstate notarization act, etc). Back in the 90’s bust, Bill Black sent over 1,000 banking execs to prison and Case-Shiller YOY bottomed out of a single dip. But now we have bribed (campaign contributions) government officials setting policy in favor and protection of the big banks. But these banks are hiding massive RE losses that won’t just disappear (interest don’t die, it multiply). They’ll be forced out into the open by either the market (all out collapse) or a pair of balls in congress. Until then, only time is bought. Hence, the next dip.
So I guess I should have said that Case-Shiller YOY has to STAY in the green. Oh well!
“many of these closed rather fast relative to their ‘entered contract’ dates”
Yes, strong showing. But cherry picks when used to characterize the whole market.
***Bid half off peak comps***
Brooklyn real estate although 20% down is still in bublle territory. The brief stabilization of prices in NYC was due to fed unprecedented policy targeting exactly those assets and the bailout of the basic NYC industry. Yet, this policy has failed and we are heading to prebubble territory. However apart from the overshoot BHO mentioned things look WORSE now due to higher taxes, unemployment and near insolvency of US. Everyone knows US is worse than european piigs although media like to focus on those to distract the populace from our insolvency.
The only people who pump desperately brooklyn re in bstoner are those who bought high.
These sales and the one comp from peak show the market has held up relatively well in Brownstone Brooklyn. This is very clear.
Suburbs are starting to take a bath after a bit of a frenzy earlier this year. I think they are starting a slow decline to last 3-4 years, potentially exacerbated by interest rates increasing and income stagnating.
I am not smart enough to know exactly how this will affect NYC, but I am inclined to think there will eventually be some drag, especially if the NYC school situation starts to deteriorate due to big time budget cuts. I know, not everyone has kids (less than 50% blah blah), but families are driving the real estate market in Brooklyn. No doubt.
i’ll stick to actual comps when measuring where market is today.
props to thefed for pointing out all the friction costs in real estate transactions. thanks for the lesson. duh!
“pre-bubble territory” = 10x annual rent, 3x median nabe income. Ouch!
“112 Butler is a great comp to measure where we are from peak in actual price terms”
Great for that one prop, not the market at large. It’s a nice, ripe cherry pick. Thanks but we’ll continue to watch NY Case-Shiller which brownstoner usually threads every month (tomorrow?). Index dead catted a little off -20% from peak but now BOTH MOM and YOY are back in the red. Yeah, I know I know, the index excludes 2+ fams, coops and condos, but that does not explain the lockstep correlation trough to peak. Index up 200%, brownstone Brooklyn up 200%. Index double-dipping, brownstone Brooklyn double-dipping.
“2+ years into the Mother of All Crashes, this home has dipped what 2.5%?”
As if the crash is over. As if the long term, historic fundamental means (10x, 3x) reverted. As if some or all of the big four banks won’t be taken into receivership, a prepackaged bankruptcy of sorts not much different than GM and Chrysler, due to foreclosure/MBS fraud/putbacks. As if we don’t have a deficit problem like PIIGS.
“let’s just say, it’s still a loooooooong way to 50% off.”
Long way up, long way down. Especially considering the classic overshoot below equilibrium (market inefficiency). No free lunch with this nobody-turned-down, hyperinflated, credit driven bubble. The bailouts, stimulii and quantitative easing only bought time, not avoidance. But compound interest goes parabolic in the mean time (that’s what’s cooked into the mark-to-fantasy books a la Enron). Yeah, I’ll agree with that.
Half off is cake.
***Bid half off peak comps***