Open House Picks: Six Months Later
Comment: Still not much to celebrate. Open House Picks 3/13/09 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Still not much to celebrate.
Open House Picks 3/13/09 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
Regarding Mr. B saying “not much to celebrate”… in addition to his own perspective as a homeowner, I think that’s just a typical way to refer to a declining market.
The talking heads on TV will say things like, “it was a horrible day for Wall Street” if stocks take a tumble — even though there are short sellers who profit when the market goes down.
Houses are not a “pile of stocks” but if their value drops significantly, people may feel trapped even if they don’t need to move…. takes away a bit of their freedom.
MM–the ones he writes say “posted by brownstoner” as this one does. But I would imagine that he would instruct his hired writers to assume the same sort of outlook he brings to the site.
big fat banker bonuses will be paid out and we’ll “see” if they’re willing to pay the still high prices or hammer sellers for bigger discounts.
Doubt anyone questions how many people CAN afford the high prices but rather how many are WILLING to pay the high prices. not too long ago, million $$$ for a residence is and sounds like a ton of $$$. What’s amazing is how quickly people got reprogrammed to viewing million or more is the “norm” for a residence. We’ll see if people are indeed less & less willing to commit a huge % of savings & income to housing vs. same old same old we’ve seen in this bull run
Actually, does Mr. B write all the posts these days? Aren’t there hired writers who create posts? And if so, are they instructed to favor sellers in their observations? Or are the hired guns owners too with a stake in propping up values? I’m not being flip, just genuinely curious.
Mr. Lefever — Why do you think a 20% decline from peak is serious? Given that equities are still down more than 33% from their peak, it seems to be that BH real estate is holding up fairly well — especially if (as I do) one thinks the peak was truly a speculative bubble rather than an accurate reflection of long term values.
BH76 – but this very thread suggests the opposite, that even townhouses are suffering. Now, as we all know, there is a wide range of townhouses (and FWIW, we’re looking at 2 families as well as single families) so perhaps there are some that are less affected – there will always be rare trophy properties. But they are the exception, not the rule. In any event, we are looking at relatively modest homes so am not sure our competition are the topheavy salaried folks you mention — but even if it was, there is plenty of uncertainty among their ranks as well.
Miss Muffett: I understand your position very well and have never begrudged you it. Certainly though it can’t be a surprise to you that Mr B would find it unfortunate that 3 out of the 4 Open House picks are still on the market. Why can’t he have a biased outlook that reflects his position in the world? Same as we all do…
MM et al
I really think that there is a different market for single family homes/brownstones in prime areas of Brooklyn and there will not be significant (30-40%) drops beyond what has happened. While the trading up has decreased to a trickle (MM not withstanding), there is stil the topheavy finance-led salaries here that will keep brownstones in good neighborhoods at premium prices. There are few enough of them — and enough high earners to support the maret. This is quite different from Case-Shiller and the NYC condo market — where I see a closer correlation (in terms of buyers/supply).
Not $800 for 3 bedroom in BH, but certiaily for 2 bedrooms. 31 2 bedrooms in the area (BH, CH, BH and DT) for under $800K in streeteasy. It has always been hard to get three-bedrooms (I have one and no one is telling me that they have buyers for it at $1.2 MM any longer).