Last Week's Biggest Sales
1.BROOKLYN HEIGHTS $2,900,000 72 Hicks Street GMAP (left) As covered last week, the 25-foot, wood-frame house was first listed for $4,995,000 and was asking $3,750,000 when it was a House of the Day last November. Entered into contract on 3/20/09; closed on 5/14/09; deed recorded on 5/28/09. 2. MIDWOOD $2,085,376 1189 Ocean Parkway, Unit 4B…
1.BROOKLYN HEIGHTS $2,900,000
72 Hicks Street GMAP (left)
As covered last week, the 25-foot, wood-frame house was first listed for $4,995,000 and was asking $3,750,000 when it was a House of the Day last November. Entered into contract on 3/20/09; closed on 5/14/09; deed recorded on 5/28/09.
2. MIDWOOD $2,085,376
1189 Ocean Parkway, Unit 4B GMAP (right)
This is the third big closing in this 13-unit Midwood condo in as many weeks. Size of units unknown, but a fun fact from StreetEasy is that the average sales price in the building is $1,904,000. Entered into contract on 7/26/07; closed on 5/6/09; deed recorded on 5/26/09.
3. FORT GREENE $1,720,000
31 South Oxford Street GMAP
This 3,360-sf, two-family was asking $1,969,000 when it was an Open House Pick last August. Entered into contract on 10/15/08; closed on 5/19/09; deed recorded on 5/28/09.
4. COLUMBIA STREET WATERFRONT DISTRICT $1,295,000
132 Degraw Street GMAP
This 3,300-sf, four-family was asking $1,325,000 when it was on the market last summer. Entered into contract on 10/14/08; closed on 5/19/09; deed recorded on 5/28/09.
5. COLUMBIA STREET WATERFRONT DISTRICT $1,200,000
136 Degraw Street GMAP
Same sellers as for 132 Degraw. The four-family was asking $1,325,000 when it was on the market last summer, according to StreetEasy. Entered into contract on 11/24/08; closed on 4/28/09; deed recorded on 5/28/09.
5. PARK SLOPE $1,200,000
133 Sterling Place, Unit 4F GMAP
A 1,711-sf, 3-bedroom in The Vermeil condo, according to StreetEasy. It was first listed for $1,650,000 in early ’07. Sale included a parking spot. Entered into contract on 4/3/09; closed on 5/18/09; deed recorded on 5/28/09.
1189 Ocean Parkway photo from EveryScape; 72 Hicks photo from Property Shark.
> “If team bear is going to rely on that lame “pre-Lehman” defense, you’d better be prepared for an avalanche of spending from the “post-March-Market low” phenomenon.”
An “avalanche of spending” because the S&P is now 40% off its high? Seriously?
Massive chop in Brooklyn Heights.
Big cut at the Vermeil in Park Slope.
Point, Team Bear.
I have some thoughts bk — a one percentage point higher rate equates to about a 20% higher home price. If you believe that rate increases reflect inflation expectations, then theoretically people will have more money from their inflated incomes to buy your house, so it’s a wash.
my thoughts: 1 — you want to be paying back a fixed rate loan during inflationary times. 2. however, if the higher rates are not due to inflation expectations, but actual credit concerns, then the top part doesn’t hold true — you could actually have deflation due to continued credit losses. 3 — if you miss the low rates, you can always re-finance if they come down in the future, but there is no way to re-negotiate the actual purchase price. My attitude is that the financing question should be left out — why buy a depreciating asset for any reason, let alone pay interest to do it — you’re better off renting.
4. a spike in rates would wipe out a lot of prime ARM borrowers and cause another wave of defaults. It would be a total disaster for the government, and I would expect them to do everything possible to avoid it. In fact, Geithner is in China now to convince them that we won’t allow it…
So basically I’m saying that I think jumping in right now for an interest rate play is just getting too cute. you are still leveraging yourself up bigtime (5:1) on the most expensive asset you might ever buy. Team bear has a seat open if you want.
> “Something special about Columbia?”
Degraw St is within the PS 29 school district. Equivalent places in Cobble Hill on the other side of the BQE are still fetching upwards of $2M.
M4L, I think that is a reasonable strategy – when asked how he made so much money, a famous investor once said (blankign on who right now), “I bought a little too late and sold a little too early.” It is a reasonable strategy to let the market tell you when the bottom has been achieved. My post was not in relation to yours by the way.
re lower priced places in contract – i am curious to see how the widget went with this if it closes:
http://www.streeteasy.com/nyc/sale/
394596-townhouse-93-2nd-street-carroll-gardens-brooklyn
Etson, we’re on the same page. That has been my strategy as well – oil, gold, short-Treasury ETFs. I am with you.
“Any thoughts?”
Brokers/sellers/developers create a false sense of urgency through fear of higher borrowing costs with total disregard for the fundamental price correction that will inevitably ensue. The monthly payment effect cancels itself out. More expensive money, cheaper price. I don’t care if borrowing costs go up to 12%. Prices will automatically correct in compound to the correction already underway. Hell, interest rates were going down at one point in the face of falling values. Raise ’em and the broker/seller/developer community will be faced with a plummeting pool of buyers at their begging price. More downward price pressure.
***Bid half off peak comps***
Bkhabitant,
I am in the same situation and have similar views to yours. So far my decision has been not to buy a property but to invest in other more fungible inflation linked assets.