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.
What: I don’t see what the connection to a huge deal for Clear Channel has to do with house sales in Bed-Stuy. Yes, the credit market is tightening for these multi-billion dollar deals, but people can still buy a house in Bed-Stuy if they have the money. (They always could, btw.).
As to the article, asking prices have declined since the crazy days of a few years back and inventory is on the market longer, but as 10:49 states, the neighborhood of BEd-Stuy is definitely changing and any softness in the market will end once we pass this current market adjustment. And no, I don;t think prices will fall much if any in BEd-Stuy.
Lower prices — dramatically lower prices — will be better for ALL the brownstone areas, as they become affordable again to the middle class people who make neighborhoods interesting and successful. It isn’t good for a neighborhood to be so expensive that no young people can move in unless they are hedge fund managers.
So we were looking to buy in Bed-Stuy. Coming from the Bronx we were shocked by prices. And in some cases…a lack of quality in the product. What we saw for the most part was 1 br condos going on average of 350-400k off the G or A/C subway lines. We really didn’t know what to think. Does this indicate that possibly prices might go down to a more realistic amount? Or are we just unrealistic in what we expected to see for prices? I know in areas like Cobble Hill or Park Slope 400K seems to be the price for studios…if you’re lucky…
Coming from an area where 3BRs go for 200k it’s a lot to take in.
I’m no economist, but I can tell you that Bed-Stuy at least continues to change in some pretty dramatic ways. Every day I see more and more new people (whether you think that’s good or bad, it’s reality). As an owner in this area, I actually think a cooling of prices will help in the long run. More people looking for a home in an up-and-coming area will buy in and continue adding momentum to these changes. Had prices continued to skyrocket beyond what was reasonable these people would not be here. I think in a year or two or three (not long if you’re planning on staying put for a while) this will only be good for the area.
What the post tells me, moreteasir, is that he is parroting what he reads elsewhere, and may not actually be very bright.
The article’s speculates that the downturn will spread to the “better neighborhoods” of Brooklyn. Are you kidding me? It’s already happening, check out the 10% price cuts announced by Corcoran on a couple of pristine trophy brownstones:
http://www.natefind.com/results.php?low=&high=&location=reduced+brooklyn&refine=Refine+Search&type%5B%5D=4&br=0&column=6&direction=1&pagelast=0&displaymap=0&mapv2=0&nyc=&page=0&searchcodes=&searchexception=reduced+brooklyn&choice=
I like the not-swearing trend.
Empty abandoned buildings in Bed-Stuy — Oh, the New York of my youth, how I missed you.
Now guest 9:59 is being the ass, he’s actually very well informed…no matter how you reframe it.
Good stuff what….and fu on the CCU deal, I was long calls.