Last Week's Biggest Sales
1. BROOKLYN HEIGHTS $5,000,000 118 Willow Street GMAP (left) When this 7,200-sf, 2-family brownstone was a House of the Day for the first time, in January ’08, it was listed for $8,000,000. The price was cut a few times and it was asking $6.8 mil when it was an Open House Pick last November. The…
1. BROOKLYN HEIGHTS $5,000,000
118 Willow Street GMAP (left)
When this 7,200-sf, 2-family brownstone was a House of the Day for the first time, in January ’08, it was listed for $8,000,000. The price was cut a few times and it was asking $6.8 mil when it was an Open House Pick last November. The last price cut brought it down to $5.95 mil in January. Entered into contract on 6/15/09; closed on 8/4/09; deed recorded on 8/13/09.
2. FORT GREENE $2,700,000
53 South Elliott Place GMAP (right)
This 3,600-square-foot one-family was a House of the Day a couple of times, most recently last December, when it was listed for $3,495,000. Entered into contract on 2/9/09; closed on 7/29/09; deed recorded on 8/13/09.
3. PARK SLOPE $1,870,000
106 Park Place GMAP
This 16.67-foot-wide house was a House of the Day and Open House Pick a couple times, most recently in March ’08, when it was asking $2,495,000. The sellers bought it for $1,300,000 in 2006. Entered into contract on 5/1/09; closed on 6/30/09; deed recorded on 8/12/09.
4. South Slope $1,700,000
248 10th Street GMAP
This is a 2,400-square-foot, 2-fam, according to Property Shark. Entered into contract on 5/26/09; closed on 7/28/09; deed recorded on 8/14/09.
5. CLINTON HILL $1,600,000
125 Willoughby Avenue GMAP
When this 2-family was a House of the Day last June, it was listed for $2,100,000. By the time it was an Open House Pick last October, it was asking $1,795,000. The sellers bought it for $1,400,000 in 2005. Entered into contract on 1/7/09; closed on 3/3/09; deed recorded on 8/14/09.
Pics from Property Shark.
Kris Posts:
“I am disagreeing with your insistence that the above sales are evidence of price declines”
WHAT? You tyoped that with a straight face?
Ok, so someone asks for a price in a richly-priced market, has the property sit for a year, and has to ultimately settle for 25% less than their ask, and that’s not a decline?
Seriously.
And if you bought in 2006 and were fortunate enough to sell in 2009 at a profit, that phantom “price decline” you don;t believe in comes in the form of a loss of potential profit had you sold a year or two earlier. That’s called missing the peak, and thus, a price decline once it passes.
Good lord.
Kris Posts:
“if you think asking prices (as opposed to comps) are the metric that counts then you’re even dumber than you are douchey”
——————
Ohhhh, nice.
No. I’ll one up you, cuz I may be dumber than a stump, but I’m smart enough to know that jsut because someone was willing to buy a palce today for a certain price, it doesn’t mean comparable properties are worth similar.
Comps right now mean very little as well, because we’re in a declining market.
If you understood economics or financial markets well, you’d be looking at HISTORICAL comps…and you’d be comparing them to affordability metrics and things like rent vs. buy. And then add where interest rates are going over next 12-18 months.
Most people who buy think they are catching near the bottom. Turns out everyone who bought between September of last year and today in NY was 100% wrong. They have overpaid.
Maybe they love their place and can afford the payments, so the loss of equity short-term doesn’t matter. It’s a quality of life issue, and if so, that’s excellent.
But if you want to play the comps game, I suggest you think a bit bigger than what’s selling at what price today. That doen’t tell you much more than where we are RIGHT NOW. In a declining market, that isn’t a great perspective to take.
History can teach us a lot about the future, you know.
“…that means your projecting a 55% drop from peak”
Posted by Antiodope
Well, I may not be projecting 55%, but based on affordability metric (40% of median income going to home expenses), 52% peak to trough is exactly what Deutsche Bank’s June National MSA report report calculated for New York.
That’s why they’ve deemed NY the least affordable city in America. Not for people w/ Minnesota bucks. For New Yorkers based on median income.
So somebody’s predicting it, and someone who’s done extensive modeling on the market to determine that number.
Doesn;t mean it’s right, but means it isn’t ludicrous.
Nov ’09 will change everything..
The What
Someday this war is gonna end…
oops, meant to write “we’re” not “were”
I don’t think were in for a run up in real estate prices in the near term in NYC, and at best we can expect no real appreciation for some time, but I don’t get the following comment from MFN:
“Look at how it turned out for those folks on Park Place in this thread. Or Fort Greene. Bad move.”
Putting aside any reno costs and closing costs, Park Place sold for $570K more than it was bought for 3 years ago, and Fort Greene for $950K more than it was purchased for in 2005. I don’t think we’ll see this sort of appreciation for every property, but how can you say that such sales were a “bad move” by the owners, unless you mean they could have sold for more 10 years from now…?
Present Low Ball = Future High Ball. Get it NOW while fools last!
***Bid half off peak comps***
“For Mr. Brownstoner to constantly list the reduction in asking price as some sort of indicator of the value of these properties is really stupid.”
No, it is not stupid at all. It’s slightly inaccurate but not stupid. Asking prices today typically hover between peak and comp. Since we’re down 21% per Case-Shiller, they’re still very close to value (currently, and temporarily, allowed by fools). If you disagree, can you please give me a number (percentage) of how far off typical asks are from peak?
***Bid half off peak comps***
Seeing a reduction in asking prices means only that the owner was asking too much. For Mr. Brownstoner to constantly list the reduction in asking price as some sort of indicator of the value of these properties is really stupid. For someone who runs a real estate blog maybe you need to take a real estate class 101. Listing this type of information to determine value in the market is so wrong, and that is what your are trying to do here. right? And if your not than maybe you need to give more information because this is the way it is coming across.