Market Report: Brooklyn City's "Shining Star"
“Brooklyn continued to be the shining star of the New York real estate market,” said Corcoran President Pamela Liebman, summing up the brokerage firm’s 3rd Quarter market report. Despite mixed results in Manhattan and anecdotal evidence locally to the contrary, Brooklyn continued to put up big year-over-year numbers. According to Corcoran, apartment prices in Park…
“Brooklyn continued to be the shining star of the New York real estate market,” said Corcoran President Pamela Liebman, summing up the brokerage firm’s 3rd Quarter market report. Despite mixed results in Manhattan and anecdotal evidence locally to the contrary, Brooklyn continued to put up big year-over-year numbers. According to Corcoran, apartment prices in Park Slope and Brooklyn Heights rose 10%. Other firms’ data backed up Corcoran’s findings as well. According to Fillmore, the hottest nabes aren’t in Brownstone Brooklyn though: Bensonhurst and Canarsie saw jumps of more than 20%. We haven’t seen the report yet and news articles didn’t mention the changes between 2Q and 3Q. Those should be the more interesting numbers. Anyone got ’em?
Boro Home Prices Still on Rise [NY Daily News]
Apartment Prices Up –or Down — in Manhattan [AMNY]
So therefore, will Brooklyn be full of nothing but bankers and lawyers, ie, rich people? And I thought Manhattan was becoming homogenous. It’s like making Brooklyn into a more urban style suburb.
I’m a midtown manhattan lawyer moving to PH/PS border because I want to get away from the madness in Manhattan. I’ll throw my bonus on the mortgage and be thrilled to have a nice neighborhood to live in rather than what I perceive manhattan to be (and I’ve lived in manhattan for about 6 years now). I think people (my colleagues included) are moving to brooklyn because they perceive it as being safe (now, in many areas) spacious and has a lot of character. People care enough about brooklyn to have these types of forums??? I could afford a similar apartment in Manhattan now but chose not to live there. Many of my colleagues live outside of manhattan to get away from the craziness we deal with all day. I chose Brooklyn because it is close to manhattan and the neighborhood has all of the amenities I’m use to in midtown (less but still all available) without the droves of people and other craziness in manhattan. Living in a sprawling home in Jersey or going to queens or other places are less appealing to me. I like city living without paying crazy real estate taxes and having crowds of people on the street. Brooklyn is the closest thing to Manhattan lifestyle without many of the negatives associated with Manhattan lifestyle. MY very humble opinion shared with many of my law firm colleagues.
I agree with linus – Bklyn has changed. And I’m not biased as I don’t own or rent any property in Bklyn.
N.Y. CRA$H PADS
MANHATTAN APT. PRICES PLUNGING
By BRADEN KEIL
Click To EnlargeOctober 4, 2006 — The top-heavy Manhattan residential real-estate market is teetering toward a long downward slide, new sales data show.
Third-quarter market reports released today by the city’s top four real-estate companies show that apartment prices have dropped, while two of the surveys say prices have sunk below last year’s third-quarter numbers.
Following a record run of year-over-year double-digit price increases, the second half of 2006 appears to be a turning point moving in sympathy with the negative national housing market.
“My phone has nearly stopped ringing,” said one high-end broker who requested anonymity. “It’s a scary time in this business.”
A chilling report by Brown Harris Stevens shows the average sale price for cooperative apartments slid by 4 percent in the past 12 months to $1,003,945, while condos fell 6 percent to $1,196,930, compared to the third quarter of 2005.
Halstead Property notes that the average apartment price is $1,087,982, which is 4 percent less than a year ago, and 10 percent lower than the second quarter 2006.
Weighing particularly hard on the market is the average sales price for a Manhattan co-op, which has dropped 16.1 percent in just the last quarter, from $1.296 million to $1.088 million, according to figures by Prudential Douglas Elliman.
Also, number of days on the market has jumped from 133 days in the third quarter of ’05 to 150 days, says Elliman figures.
According to Halstead, the average price for West Side apartments was lower this quarter than the third quarter of last year in every size category, from studios to four-bedroom luxury flats. And new listings fell 10 percent downtown and 8 percent on the East Side in the past 12 months.
The negative numbers represent a stalemate between buyers and sellers, an overabundance of properties for sale and a boom in the construction of condominium developments.
And for the first time in history, city condo sales outnumbered co-op sales, which should continue, brokers say, given the deluge of condominiums coming to market.
The Corcoran Group reports a 17 percent drop in deals closed in the past 12 months from 3,597 to 2,996.
Corcoran CEO Pamela Liebman says there are fewer deals being struck because sellers are still sticking to their asking prices while more buyers are taking a wait-and-see attitude.
“Buyers don’t feel the same urgency as in the past,” she said. “They feel more empowered to make low offers or just wait. We’re not going to sell as much as we did in the last few years because the market was previously reacting to a lack of inventory.”
Across the country, home prices fell 1.7 percent from August of last year, according to figures released by the National Association of Realtors – the first time in 11 years the market had a year-over-year decline.
“Higher-priced markets are seeing larger declines,” Lawrence Yun, an economist with the National Association of Realtors, told The Post. “People just cannot afford them because they’ve risen so much in places like New York.
braden.keil@nypost.com
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This change has been coming for a while now. Brooklyn and Manhattan prices are beginning to equalize. The first poster describes the trend well. As Brooklyn becomes more desirable (instead of being just a cheaper option), property values between the two boroughs will moderate.
anon 10:01 — some would, I’m sure. But, I think, not as many proportionately as would have ten years ago — or as many as (I assume) did during the last RE crash. That was my point, that Brooklyn’s different than it was then, both in concrete terms and in terms of perception.
That said, there are all kinds of factors, like all the new condos coming online, so I’m really just speculating here.
“If Manhattan become cheap enough, won’t some former residents move back from Brooklyn causing a void there?”
To know this, we’d need to know how many people moved to Brooklyn because it was cheaper versus moved to Brooklyn because they really really wanted to. Those who wanted to probably won’t leave. I think there will also be people who moved for cheaper housing, bought houses instead of co-ops and are now used to the space. They may hang around. It’s the apt. buyers that are the worry. If there is an option to buy a co-op or condo in Manhattan, that market in B’lyn may take a hit.
…there meaning here in Brooklyn
If Manhattan become cheap enough, won’t some former residents move back from Brooklyn causing a void there?