Market Report: A Chill In Former Hot Spots
The Wall Street Journal has an eye-opening article about what’s happening in some of the formerly frothiest markets around the country. In parts of Florida, California and Arizona, where home builders have been constructing new units at a furious pace in recent years, the market has reversed quite sharply in recent months: Homes that just…
The Wall Street Journal has an eye-opening article about what’s happening in some of the formerly frothiest markets around the country. In parts of Florida, California and Arizona, where home builders have been constructing new units at a furious pace in recent years, the market has reversed quite sharply in recent months:
Homes that just last year were selling so rapidly that they stayed on the market for just days or even hours are now languishing without buyers or even prospects. Many once-booming markets are seeing double-digit declines in sales. The Florida Association of Realtors reported recently that sales of existing single-family homes were down about 20% in February when compared to the same month a year ago — and they were off as much as 47% in Naples. In California, sales dropped 15% in February compared with last year, led by a 30% decline in Sacramento, according to the California Association of Realtors. February sales were off year over year by about 19% in Washington, D.C., and down about 25% in and around Phoenix.
This isn’t the case everywhere. Prices in “bargain” cities like Indianapolis, Albuquerque, and Houston are still rising. As for Brooklyn? A broker told us just last night that she thought the balance of power has shifted to buyers. Along those lines, check out Curbed’s report on the price cuts at 55 Berry. Whoa!
Hot Homes Get Cold [Wall Street Journal]
While they may have been overbuilding condos in brooklyn for the last few years, Brooklyn brownstones and townhouses are still much cheaper per square foot than Manhattan townhouses or Brooklyn condos. Brooklyn townhouses are still relative bargain and a safe bet considering how quickly the borough continues to gentrify.
Well located would mean near subways, good schools, in affluent neighborhoods and not next to gas station, nightclub ,etc … just about same as anywhere else (except most places don’t have subways).
oooh, I can’t resist. What’s “well located” in Brooklyn?
let me tell you guys this, In south florida prices are taking a plunge. In Miami and West palm beach there are thousands of condos for sale buy owner or builder. The price reductions can be found everywhere. They will be jumping out of the windowns when the first tax bill comes in november. The taxes are 2% of the purchase price, plus add the maintance fees and those intrest only loans. The rents are also getting cheaper because of there being so many units empty.
Duh.
My guess is that in the Brooklyn market the good properties will continue to be in high demand and will get premium prices. Bidding wars will still exist.
However, the properties that are not as well located or need excessive amounts of work will no longer fly off the shelf. These are the ones that will sit longer and will be subject to price reductions.
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I’ve had Brooklyn brokers calling me as well alerting me to numerous price reductions and a ‘significant market shift.’
This Fall should be really, really fun after a very slow summer.
15% in California? I’m in Berkeley and that is not the case here.
I’m guessin Silicon Valley may be a bit lower, but things were going up 50% annually there so what’s 15%