Market Update: Bad News For Subprime-Stunned Nabes
A Crain’s article features some pretty grim sales data from Brooklyn-based appraisal firm HMS Associates. It goes a little something like this: Bed-Stuy, East New York, Brownsville and Ocean Hill are looking kinda screwed right about now. Sales volume in the four neighborhoods, which were hit hard by subprime lending, is down 64 percent over…
A Crain’s article features some pretty grim sales data from Brooklyn-based appraisal firm HMS Associates. It goes a little something like this: Bed-Stuy, East New York, Brownsville and Ocean Hill are looking kinda screwed right about now. Sales volume in the four neighborhoods, which were hit hard by subprime lending, is down 64 percent over the past six months, and prices are nudging down. Financing is simply not available, says HMS Executive VP Sam Heskel. Sales are down all over, but in subprime neighborhoods, you see it more.
Brooklyn Starts to Feel the Real Estate Pinch [Crain’s]
Photo by Reid Harris Cooper.
A recent report came out showing that many high-ended buyers are hurting from the same deceptive loans subprime buyers were using. As in, everyone’s basically screwed, the higher end borrowers just have longer to go before they start to feel the pain.
Also, why should New York City keep going up? It’s not an ancient world heritage city like London, Paris, Tokyo, Warsaw, etc. Brooklyn is as old as Rutherford, New Jersey. The UK and European markets are starting to see huge price corrections of their own. 2010: Brooklyn where?
Prices are falling in NYC, your denial notwithstanding.
It is easy to borrow and it it easy to refi – which I just did – if you have good credit. Always was the case. Always will be.
11:40/11:42, Prices are flaling in LAS VEGAS and MIAMI. Not New York. Don’t you know how to read?
Brokklynnative: To think that some broker’s money ever finds its way to Bed-Stuy is a huge stretch.
Bed-Stuy is suffering from foreclosures due to people getting loans and mortgages that they really couldn’t afford and most of those people were long-time residents of the area. That has nothing to do with some one on Wall Street not spending his money in the hood.
that natefind.com website is amazing!
The connection between the Clear Channel deal and Bed Stuy is that there are going to be a lot fewer of these deals going forward, which means there are going to be a lot fewer 25 year old investment bankers making six to seven figure salaries, (8,000 Bear Stearns employees making on average $300,000 are expected to be laid off), and once NYC loses all these jobs the entire economy will tank just like it did in the six year period between 88 and 94 after the 87 stock market crash. Market prices in all of NYC did very poorly during this period including of course Bed-Stuy. Remember that crash was a one day affair – this credit crunch is going on a year now. Maybe these investment bankers don’t buy in Bed-Study but they spread to the money around to people who do. It’s also simply very hard to borrow money right now as the Clear Channel deal shows and that’s true for homebuyers as well.
Where is your data 11:31?
The article above has to do with sales volume and prices are “nudging down.”
Get a life you bitter, bitter renters.
11:20, you’re joking right? Seriously that was a funny joke, cause I know you must be joking!
They’re falling everywhere!
Living in a brownstone and wishing really hard doesn’t give you the power to negate fundamental economic forces. Prices are falling everywhere, INCLUDING Bed-Stuy, and there’s nothing wrong with that.
Healthy markets go up and they markets come down. The US housing market has been severely unhealthy for about 6 years. Think of this “crisis” as the fever that kills the infection.
11:20, you’re joking right? Seriously that was a funny joke, cause I know you must be joking!
They’re falling everywhere!
Living in a brownstone and wishing really hard doesn’t give you the power to negate fundamental economic forces. Prices are falling everywhere, INCLUDING Bed-Stuy, and there’s nothing wrong with that.
Healthy markets go up and they markets come down. The US housing market has been severely unhealthy for about 6 years. Think of this “crisis” as the fever that kills the infection.
already falling.