Manhattan Housing Prices Take a Dive
Tough times across the river. The grim first quarter stats—volume down 60 percent, average co-op prices down 24 percent—may only be the tip of the iceberg. Particularly hard hit is the high end of the market, where 350 listings clog the slow-moving pipeline of $10 million-plus properties. (Official condo sales price numbers held up, but…
Tough times across the river. The grim first quarter stats—volume down 60 percent, average co-op prices down 24 percent—may only be the tip of the iceberg. Particularly hard hit is the high end of the market, where 350 listings clog the slow-moving pipeline of $10 million-plus properties. (Official condo sales price numbers held up, but that’s only because of long-standing contracts finally closing; condos still on the market are at a virtual stand-still.) Those who need to sell are having to resort to massive discounts: One philanthropist recently had to cut the original asking price on her 17-room West End Avenue apartment of $13.5 million by 46 percent to get a deal done, and even then she had to chop the space up into two apartments to find buyers. Jonathan Miller points to the lack of available credit for big purchases—any loan above $729,750 is harder to get and more expensive than conforming loans. It certainly doesn’t bode well for more expensive properties in Brooklyn, but at least we have more condos and co-ops that can be bought using conforming loans!
Housing Slump Hits Manhattan [NY Times]
Photo by yujie
Hurray 1500 dollars for a two bedroom in Carroll Gardens! Who would have ever thought. I am still waiting to see 1100. I will let you know when we are there.
“Perhaps I must be to conservative.”
No, you’re too sane. You need to drink some koolaid.
***Bid half off peak comps***
Real Estate has always been a long wait, unless you have to sell. Tough times not just across the river, but everywhere including Brooklyn too. I just can’t understand how people can spent $2 million to live near the projects, low income or near a prison. Perhaps I must be to conservative.
“Tough times across the river.”
You’re not looking across the river. You’re looking into a mirror.
***Bid half off peak comps***
“I’ll repeat my mantra: the only way to analyze a market is to look at average sales price (ASP) on a per-square-foot basis, for properties in the same class (example: Manhattan condos).”
Why do all that work? Just follow NY S&P Case-Shiller Index. Although it only calculates resale prices of SFH’s, it shadows the percent changes of the rest of NYC and brownstone Brooklyn prices to a ‘T’. Everything up about +200% (3-fold), just like the index. Market bottoms when the YOY price comparison gets its positive sign back. Piece of cake.
“the old jumbo size was something in the 400s, and one of the early govt responses to the crisis was to get fannie and freddie to raise it”
It’s called price-fixing. It’s supposed to be illegal.
“but come 2 think of it, how many of these super hi-end sellers would even consider moving to BK? Not saying none but have 2 assume only a very small # right?”
Right, more4less. In their eyes, Brooklyn is even more fringe since the collapse.
“the WIFE is not on-board with my sell, rent, buy later plan”
Estrogen rules.
***Bid half off peak comps***
“Manhattan was spared some of the housing problems the rest of the country faced during this downturn. The mortgage foreclosure rate in Manhattan remains low even today.”
Use the same speedy foreclosure process as in other states and the rate in Manhattan would spike overnight. Severely flawed comparison. NYC foreclosure process is notoriously slow.
“While thousands of condos were built here, most were bought by homeowners, not speculators, as was common in Miami and other oversaturated markets.”
Yeah rrrrrrriiiiiggghhhht. Homeowners speculated that RE only went up and that they could refinance or sell if cash dried up. It was always touted as an “investment”.
“But Manhattan housing prices were driven higher by record earnings and bonuses on Wall Street, and they fell hard when the music stopped last fall.”
And what was this if not speculation (on Main St to afford pre-war on Park Ave)?
“Condominiums under construction have been hit particularly hard, especially because new mortgage rules have made it difficult for buyers to get conventional loans unless 70 percent of the apartments in a building are in contract.”
70%? Damn! Talk about musical chairs.
“…buyers were offered a chance to ‘rent to own,’ and a promise that Rockrose would buy back an apartment after five years at 110 percent of the purchase price.”
110 percent? Yeah rrrrriiiiiiggghhhht. Rockrose will be bankrupt by then. Empty ass promise.
***Bid half off peak comps***
“…at least we have more condos and co-ops that can be bought using conforming loans!”
Glass 1% full.
***Bid half off peak comps***
Got here late today.
Stuart has the correct information. The new 2009 limits aka 729k won’t start until May 1st. FHA loans have those limits now but you will have to wait until May 1st for the Fannie/Freddie product which is a better product and cheaper as well.
These are called conforming jumbo loans. They carry a slightly higher interest rate than TRUE conforming loans aka 417k for 1 units, etc.. for 2, 3 and 4.
adahill@approvedfunding.com
Happy Easter and Passover… I’m heading to Florida to catch some rays.
Chris Havens:
The West End number was not a sloppy combo with just a wall down. Its original owner was Harry Belafonte!
I remember the place as a kid. It was the biggest apartment I’d ever seen! The grandest fun house on the planet! And right inside the door was a life-size, full-figure oil portrait of the Great One in a Calypso outfit! Sure, I had friends on Central Park West, but this apartment put their places in the shade!
Belafonte, an acquaintance of my parents, bought the ENTIRE building back in the 50’s because no high-end rental in Manhattan would lease to blacks. And over the years he sold the apartments one by one for a fortune.
Sweet revenge. (And the kind of real-estate acumen Brownstoners can only fantasize about!)
Nostalgic on Park Avenue