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 @ 1:16,
Peak average LWBS has to be researched and extracted, not guessed. I vow to do so when time permits. Maybe it’ll be one for Team Bull. When we say asking prices are meaningless, it’s an exaggeration. With the rare exception of something way over comp, most are pretty close. No, it’s not as accurate as a closed sale comp BUT it suggests that such a figure is nearby (within 10% or so). I expect to see that that gross 44% profit/(3 years) in Park Slope was beat in prior LWBS sets.
More meaningful than LWBS itself is a scoreboard of how the average of each set has fared to date. The average would resist the skew of those insanely priced Syrian synogogue sales or even something on the lower end that happened to make it to the top five. I would expect nothing different than a “falling off a cliff” graph. Maybe I’m wrong. Prove me such if I don’t first.
And/or, simply add/use the extreme top sale in the set and see how that has fared recently.
***Bid half off peak comps***
Antidope,
If the market can go up 300% in ten years, why can’t it go down 50% in two or three?
Seriously, why not?
“There are literally a handful of nice brownstones on the market right now. ”
That’s because many many many have been delisted 11217. But there’s more than a handful, but let me get to that later.
I keep a database of every property I’m interested in, and have seen. been doing for 10 months now. Over 100 buildings, 35 of which I’ve seen.
I’m not talking anecdotes here. And I got an argument. The number of places that are pulled b/c of seller fatigue is significant.
Delistings galore. Shadow inventory. Call it what you will.
Buyers are not buying, and sellers are giving up.
And I still have at least 30-40 buildings in 4 nabes that are on the market and good properties–and that’s just my price range.
More than a handful.
11217,
First off, there is tons of inventory on the market in Brooklyn.
Secondly, I’m sure many potential sellers are holding off putting their properties on the market since everybody (and their mother) knows how bad things are right now.
But those sellers can’t hold off forever — life intervenes.
It’ll only take a few lowball sales for local comparable sales to plummet. . . It’s just a matter of time.
IB, no one would make that trade. I would argue that it is improbable that a market price of 2.5 turns into 1.75 in two years. That’s 30% further for those counting. if we’ve already dropped 20%, then that means your projecting a 55% drop from peak. there is no doubt that this is within the realm of possibility, but how you get to odds-on “probably” is a stretch at best.
“wonder if some sellers are listing places at prices well beyond what they would have asked in the peak of the boom in order to make it appear they are cutting prices”
This has been a known phenomenon to many for a looooong time. And has been discussed extensively on this site. Still isn’t making inventory move.
And Kris, Kris, Kris…
If I’m saying we STILL got a long way to go even with these slashings, which clearly do not impress me as demonstrating value for the buyer, then how exactly is this tactic “working” on me?
Either *you’re* not reading my posts, or I’m just going over your head.
The fact that most of these houses are listed more than once as HOTD, including the Garfield mansion today which we’ve already seen leads me to believe that inventory still remains at an all time low. There are literally a handful of nice brownstones on the market right now.
So few, that we’re even seeing repeats on a website devoted to covering Brownstones.
Until that changes, MoneyForNothing has no argument.
Not that he did before…
The analysis just reinforces the crushing reality, which is too hard to ignore.
Delisting after delisting, price cut after price cut, sale below ask after sale below ask. This market stinks if you’re a seller, and it’s not priced at a place where buyers are willing to step in. The distance between the ASk/Bid spread is cavernous.
So you tell me, where are the economic tailwinds in NY that are going to propel us higher ANYTIME soon? Just name something, ANYTHING with some real thought behind it other than hope and maybe I’ll take you seriously. We’re 2.5 years bhind the national curve, our only high-flying industry, finance, jsut got crushed, and retail stores are closing regularly all over manhattan. That foreign buying trade vs the weak doller that resulted in 1/3 condos in Manhattan being purchased by foreigners? Gone.
What I’m getting at here is hammering home to everyone what lies beyond these silly reviews of individual properties.
So gimme something tangible. Somthing insightful. Anything.
I don;t strike you as serious? Right. No, I just refuse to catch a falling knife when the chance of missing the upside is so remote. This is not a small cap stock. Takes months and months to form a bottom.
I’m dead serious. very high 6 figures liquid in cash serious, no debt, no monthly payments on anything and 300K household Income serious.
To someone in my position——very little financial risk, plenty of cash and income, these properties STILL don;t make economic sense. The monthly payments are unnecessarily risky. 15-20% from here, they work.
I’m sure others like me have come to the same conclusion. That, along w/ problems getting financing, is why it’s a highly illiquid market.
It’s still twice as cheap to rent than to buy — at least in NYC. It makes no sense to buy unless you believe that real estate will sky rocket again in value like it did over the last decade. Who believes that?
It’ll take years for the market to hit bottom, but the point isn’t to try and purchase at the market low because nobody knows where the bottom lies.
Furthermore, it makes no sense to put down a huge down-payment and still have to make monthly mortgage payments twice as big as you’d pay if you were renting.
I own investment properties, one of which I currently live in, but soon I’ll be renting a house for a fraction of what it would cost if I were to purchase the property. In a few years, after prices come down substantially, I’ll buy.
But why buy now? Why pay 2.5 million now for a house that will probably sell for 1.75 or less in a couple years? It makes absolutely no sense at all — none.