Last Week's Biggest Sales
1. BROOKLYN HEIGHTS $3,200,000 32 College Place GMAP (left) A 2,820-square-foot, single-family house, according to Property Shark. Entered into contract on 12/9/08; closed on 2/11/09; deed recorded on 3/20/09. 2. COBBLE HILL $2,300,000 17 Cheever Place GMAP (right) This 2,488-sf two-family hit the market in June, listed at $2,750,000; the price was subsequently decreased to…
1. BROOKLYN HEIGHTS $3,200,000
32 College Place GMAP (left)
A 2,820-square-foot, single-family house, according to Property Shark. Entered into contract on 12/9/08; closed on 2/11/09; deed recorded on 3/20/09.
2. COBBLE HILL $2,300,000
17 Cheever Place GMAP (right)
This 2,488-sf two-family hit the market in June, listed at $2,750,000; the price was subsequently decreased to $2,575,000. The house had been “meticulously gut-renovated to perfection,” according to its listing; the sellers bought it for $1,130,000 in early ’06. Entered into contract on 11/10/08; closed on 3/6/09; deed recorded on 3/16/09.
3. PROSPECT HEIGHTS $2,000,000
210 Prospect Place GMAP
This 3,633-sf, single-family townhouse was first listed for $2,495,000 last summer; the price was dropped to $2,250,000 in October. As noted in a House of the Day post, its owners gave it an extreme makeover. Entered into contract on 2/5/09; closed on 3/10/09; deed recorded on 3/19/09.
4. PARK SLOPE $1,620,824
520 8th Street GMAP
This 3,000-sf, three-family last sold for $999,999 in late 2007, according to Property Shark. Entered into contract on 3/6/09; closed on 3/6/09; deed recorded on 3/18/09.
5. CARROLL GARDENS $1,575,000
356 President Street GMAP
This 4,500-square-foot house was listed for $1,820,000 when it got House of the Day treatment last November. Entered into contract on 1/19/09; closed on 3/10/09; deed recorded on 3/18/09.
Photos from Property Shark.
I’ve found so much that I agree with on this thread that I can scarcely contain myself – I’ll also take another rare dip into the comment pool and even try to be a little provocative (hopefully in a constructive way).
I think Lechacal @ 2:04 PM largely nailed it, my only addition is that I think many of the other-than-“prime” neighborhoods (I’ll let others have the argument over what that term means) are going to take serious (not “modest”) price hits over the next 12-18 months as the economy continues to stagnate.
First the inventory in those neighborhoods is growing and will continue to grow. As The What correctly (I think his substance is often right) observed up above, inventory in many neighborhoods simply isn’t moving right now. Second, the prices in those neighborhoods will fall. The declines won’t seem dramatic relative to value but they will sure seem dramatic measured against the peak of the silliness of Summer 2006.
I also think The What is not all wrong when he suggests, as he often has, that economic distress-driven crime in some of those neighborhoods might compound the price declines (something none of us can pretend to know for sure, but at a minimum it isn’t an unreasonable hypothesis).
So, my big add-on to Lechacal’s point is that I think some neighborhoods are in for a big near-term hit. What look like bargains today in those neighborhoods might feel like “falling knives” in another year . . . but will probably turn out fine for a buyer who’s time horizon is longer term. But I think caveat emptor would be the rule if I was looking anytime this year.
Finally, in all seriousness, Mr. B., one multimillionaire in Brooklyn Heights selling his mansion to another multimillionaire doesn’t really say much about the “real” state of the market. At best it’s misleading, at worst – under the current circumstances of most people in this city – it almost feels distasteful. I fully agree with those lobbying for a “Best Deals of the Week” feature.
Vinnie- FHA loans are still doing 3.5% down and they raised their limits back to 2008 levels.
1 unit: $729,750
2 unit: $934,200
3 unit: $1,129,250
4 unit: $1,403,400
FHA loans are more costly but if you don’t have a choice they are still an option. FHA includes section 203(k) loans that allow you to finance repair costs.
Fannie/Freddie are also adopting those loan limits and they should be available within the next week or so. They won’t do 3.5% down but you will be able to 20% down to those limits.
Dave –Aren’t the various parties suggesting a basket of existing currencies as the international reserve currency, to replace the dollar? The world went off pound sterling; Nixon shut the gold window in one swoop, on a Sunday night. Not sure why the dollar couldn’t be replaced.
I think we’re dancing around the central issue: Will the Geithner plan work? It may in the short run, and then the bulls will hosannah like there’s no tomorrow. but as Geithner made clear today, there is no Plan B, and many v smart people think this is a kiss-off to the value of the dollar.
Also: If the Chinese have no choice but to buy our bonds, why is the Fed publicly committed to buying the long end of the curve?
I keep thinking of the line from Princess Bride: I do not think that word (Impossible) means what you think it means.
Adam,
The big problem is that for a multifamily I have been quoted that I need to put down a minimum of 35% downpayment despite a good salary, credit history etc.
Despite what other people on this blog are saying, I think this is going to put a lot of downward pressure on prime Brooklyn, since most people will need to put down $400k minimum on two or three family home. Unless somoeone is trading up with a huge windfall, how many people will be able to drop so much money on a house during these uncertain times.
Vin
Alot of first time buyers are looking at Bedstuy and Bushwick again, but this time they are lowballing and looking for foreclosures and short sells.
I speak to at least one person today that wants to buy and rehab in those neighborhoods. They see the potential and can’t afford the prime areas and are convinced as first time buyers that they well never get into a prime property in the slope/heights/hill/gardens/greene etc….
There are opportunities in subprime Brooklyn and you will see the beat up multi-fams get snatched up when they hit around 300k for a 4 floor.
Mopar- Do you concur?
Not sure what team I should be on –
Values will fall approx 50% from the peak (but maybe less if only because rampant inflation will result in higher nominal numbers)
BUT…..It will take years(3-5) and it will effect ALL housing classes similarly – except for the immediate effect of a large supply of new construction being put online, there is no significant difference between the generic coop and condo – except perhaps for some nicer finishes – which are easily overcome by a Condo’s easier transferability.
And over the longer term, there will be no significant difference between very large apartments (coop & Condo) vs the average brownstone.
Additionally, as long as crime stays down (which is NOT a function of the economy but of policing and people) Brooklyn (and NY as a whole) will never see prices fall to the levels we saw in the 70’s – it is just a different city in terms of desirability and options (suburban expansion is already mostly done)
As for the default of the U.S. itself – please – the Chinese have ZERO choice but buy our debt – there leaders face far more risk trying to send their workers back to some 5 sq ft of land they call a farm – then they do losing some capital by us devaluing our dollar.
The world is not coming to an end – but getting rich by doing nothing but following the herd hopefully is
Mr. ROTW,
The housing bubble has burst. What’s the big news? People were pointing this out five years ago if they had any sense. The bubble kept inflating and then POP.
We don’t care if our houses will be worth pennies on the dollar by Christmas. We’ll all be starving then while society breaks down.
Are you on a crusade to save Brownstone Brooklyn’s humanity and to wake us up to the fact that there is a world financial/social crisis?
Look, it has been going on for a long, long time.
Slopefarm the retards time is short. You can do whatever you want. You can use my grammar as a issue but at the end of the day. The Mutant Asset Bubble is over…
“I think the only shoes left to drop are really some of the Eastern European currencies. It’ll be like the last Russian crisis though, a big yawn.”
I hope you are right Dave because that is a ticking nuclear bomb…
The What
Someday this war is gonna end..
‘stay dogs’ are dogs that listen to you when you say ‘stay!’
and then you hump them…