Last Week's Biggest Sales
1. BROOKLYN HEIGHTS $3,895,000 80 State Street GMAP (left) This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original…
1. BROOKLYN HEIGHTS $3,895,000
80 State Street GMAP (left)
This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original details intact. Grand double parlor with exquisite moldings and original pocket doors, three wood-burning fireplaces, and rooms flooded with superb Southern-facing light…” Its seller bought it for $3,300,000 in 2005. Entered into contract on 10/1/09; closed on 1/5/10; deed recorded on 1/27/10.
2. COBBLE HILL $3,200,000
243 Kane Street GMAP (right)
As covered last week, this renovated townhouse was originally asking $2,950,000 in ’07, but the price was raised to $4,075,000 in mid-’08. As it lingered on the market, the price was reduced several times until it was last asking $3,500,000 as of mid-’09. Its seller bought it for $1,802,000 in 2007. Entered into contract on 1/15/10; closed on 1/15/10; deed recorded on 1/28/10.
3. BROOKLYN HEIGHTS $2,995,000
20 Grace Court Alley GMAP
As previously noted this 2,550-square-foot brick house was originally asking $3,300,000 and the widget appraisal came in at $2,766,135. Its sellers bought it for $2,675,000 in ’05. Entered into contract on 11/17/09; closed on 1/15/10; deed recorded on 1/28/10.
4. PARK SLOPE $2,125,000
524 2nd Street GMAP
When this 2-family was a House of the Day in October, it was listed for $2,375,000. The reader widget guess on it was $1,952,045. Entered into contract on 11/5/09; closed on 1/11/10; deed recorded on 1/26/10.
5. FORT GREENE $1,870,000
119 Fort Greene Place GMAP
When this brownstone was a House of the Day in November, it was listed for $1,995,000. The reader widget appraisal clocked in at $1,615,042. Entered into contract on 11/25/09; closed on 1/7/10; deed recorded on 1/27/10.
Photos from PropShark.
Like at the top, Brooklyn brownstone TM (all rights reserved) will not bottom before NY Case-Shiller. Where that index goes, brownstones will follow. That’s why the index gets it’s own thread every month. Relevant on the way up (both up +200% despite condo, coop and multifam exclusion), relevant on the way down.
Also, we cannot and will not have a bottom until volume peaks again. Volume peaks twice in a cycle – once before the top (RE only goes up until it doesn’t) and once before the bottom (capitulation).
You cannot ignore the fundamental metrics – 10x annual rent ( http://tinyurl.com/yb8hft9 and tax assessment method on condos ) and 3x median income (as rates will inevitably rise).
You will have your Jerry Minsky super comp every now and then but by and large (as 11217 alluded to with the -30% YOY figure), the market is in freefall.
I will continue to beat this into your heads. DIBS will be so wrong in his prediction (the original one, not the evolving one).
***Bid half off peak comps***
For the state st house:
The price appreciated by roughly 4%/year since the last sale. The new owners did a lot of work on it and had to turn over 4% + taxes to the broker and city, it looks like these guys didn’t make any money after inflation, and they still had to spend the interest/opportunity cost of the gigantic mortgage.
Basically: These guys got out without getting killed, but they’ll probably think twice about trying to flip a property again.
don’t see the number yet for 607, but it’s listed as sold in streeteasy as of 1/15. usually takes about two weeks to be recorded in acris. ergo, next week.
boerumresident, i don’t think there is a nabe effect (in fact there aren’t enuf data pts in any given nabe to really make strong conclusions). i had meticulously kept track of the information until… i lost my electronic files. don’t ask. at any rate, it’s had the same effect that the 1994 baseball strike had for me. it has weaned me off the data agglomeration teat, as such i find i have more free time. now if i really want more free time, i need to forget the name of this website. unfortunately, it’s catchy. and i bookmarked it.
slopefarm, agree with sentiment, though exact amount of widget adjustment was approx 11-12% by the time i lost my file.
fsrg, agree completely with you, but i wouldn’t make the bet — the real estate market has surprised me too many times.
It should also be noted that many of these sales are cash deals. It is really almost impossible to get jumbos, and people are paying cash for these larger more expensive houses. I know of two more 3 million plus houses that are in contract in BH and Cobble Hill. I don’t want to generalize, but I think prices came down and people saw the value. 80 State is a great house.
“but in the boom times everything sold for above ask.”
So that’s what you base your norm on…a few years of a boom?
Actually before the boom, MOST properties sold for under ask.
It’s called a normal market.
If moving forward, you are always going to compare to 5 years of a historic boom, then yes…I guess you could make pretty ridiculous conjectures.
Three of these houses sold for OVER what was paid for them a few years ago. That’s the number which actually means something in this context.
.”18mo from now I am willing to bet you that NO ONE will be saying “you should have bought in early ’09 – you missed your chance”
Despite the fact that I have a major financial stake in house prices rising over time I have to say I agree with fsrq on this. We may be over the precipitous decline but I am not too confident that we are back in rising price mode any time soon.
Interesting for a NYMag article:
http://nymag.com/realestate/features/63383/
Why is this encouraging. Every one of these houses except Brooklyn Heights went for under ask. Nothing wrong with that, but in the boom times everything sold for above ask.
None of this seems particularly encouraging or particularly discouraging.
Very true, fsrg. The cycle might take a while to play out. No one knows.
But you also said in the original thread that the Park Slope house was overpriced and that it wasn’t a 2+ million dollar house. It sold for 2.125
So perhaps it’s possible not everyone knows what will happen next as much as they think they do. Myself included.