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
sam – zing!
Sam,
that could be probable if their parents own a CASTLE somewhere (ie parents worth gazillions still)
I have a feeling many who are selling their high-end apartments in manhattan are looking either to move back in with their parents or to rent at the Y.
brickoven…some of us can put more than 20% down.
fyi, the calculation is by county, not city. For high cost areas, the maximum for a single family is $729.75K. For a for family, it is almost double that.
The CY2009 basic standard mortgage limits for FHA insured loans from Fannie/Freddie are:
One-family Two-family Three-family Four-family
$417,000.00 $533,850.00 $645,300.00 $801,950.00
High cost area limits are subject to a ceiling based on a percent of the Freddie Mac Loan limits The ceilings for CY2009 are:
One-family Two-family Three-family Four-family
$729,750.00 $934,200.00 $1,129,250.00 $1,403,400.00
see: https://entp.hud.gov/idapp/html/hicost1.cfm
if easy real estate profits via Manhattan ppties are drying up, so too will high end ppty sales in BK. Easy to rollover profits from Man ppty sale into expensive BK ppty but quite different if source of down paymt, etc. is via paychk savings.
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?
Am more concerned, BK ppty price wise, with studio to 2-bdrm units in Man not selling or selling with huge discount. Would expect more probable that this set of folks consider rolling over profits to buy in BK
If one thinks about the situation rationally, one is left with the conclusion that current home prices in middle-class neighborhoods of Brooklyn are grossly inflated. Without 10% down deals, most new buyers will not be able to afford a house. Americans are notoriously bad at saving but brilliant at speculating and leveraging. Without the latter, it only leaves people like me in a position to buy, and frankly, the last thing I want to do right now is buy more real estate in NYC.
Jumbo mortgages just set record defaults for March. Dave is that you?
I saw your bait DIBS and raised it but sadly no-one took my bait 🙁