Overpricing Not Working in Carroll Gardens
“What the heck is going on in Carroll Gardens?” we asked back in January. Our question was prompted by a rash of ridiculously priced townhouses in the area. Well, since then, three out of the four houses we looked at that day woke up to reality and one is still clinging to its delusions of…
“What the heck is going on in Carroll Gardens?” we asked back in January. Our question was prompted by a rash of ridiculously priced townhouses in the area. Well, since then, three out of the four houses we looked at that day woke up to reality and one is still clinging to its delusions of grandeur. 329 President has since been reduced by $605,000 and 78 3rd Place by $795,000; 44 1st Place, the nicest and biggest of the batch, appears to be off the market.
What the Heck Is Going On in CG? [Brownstoner] GMAP
HOTD: 40 2nd Place [Brownstoner]
HOTD: 78 3rd Place [Brownstoner]
HOTD: 44 1st Place [Brownstoner]
I suppose everyone thinks that home prices in Beverly Hills, Honolulu, Cambridge, Greenwich Marin County will all be selling home for 200K soon also.
You know there are expensive areas, and there are not expensive areas. Boom or bust, New York City is still expensive, so if you are waiting for a bargain, you missed that train 7 years ago.
New York in that time has become a world city with tourism at an all time high.
I just saw a renter in double parked zip car trying to rent out the ground floor at the Chase bank on 7th ave.
i’m sending my rent check late this month. really late. what are you going to do about it? you’re so over-leveraged, you can’t live one month without the cash flow. a new stainless fridge should oil the gears…
All this time I thought I was being smart owning my house and now I see that I am in for a long hard road of misery and suffering. That will show me for trying to own something. I’m just a stupid owner. Gotta go fix the leak in the roof.
“Because you can’t live inside a bank.”
What does this have to do with anything? If housing prices can rise 20-30% a year in the absence of any change in fundamentals, which is what happened in Brooklyn between 2002-2007 (no meaningful increase in population, only minor increases in average income, etc.), then obviously they can fall 20-30% in a year. You may not feel the pain if you don’t sell, but that doesn’t mean it’s not there, as you’d find out as soon as you tried to get rid of your home. You’re sitting right now on a depreciating asset, one you’re paying for with piles of borrowed money. No doubt you’re doing the right thing.
considering i bought my house for 600K and it’s not valued at approximately 2.6 million, i’ll be ok if it loses a little value.
thanks for all the concern, but i’d love to know how many renters here have that kind of asset lying around.
better bust out those baseball cards, kids.
Even if it prices come down. It will never be in line with “real incomes” because these areas are not for working class people anymore. People need to understand that they will never be able to afford these areas. People who think otherwise, may as well wait for Park Avenue to come down to a level that a mid-level manager can afford.
Wait! What about all of the condos in Carroll Gardens? They don’t seem as overpriced, but yet they are taking forever to sell. Does the same fate await those too?
12:55 owners better hope for alot of stupid renters. Current owners are locked into their homes that they won’t be able to sell, so the stupid renter is your only hope for liquidity at your asking prices…or maybe the renters are smarter than you think and you may actually not be able to sell until the price drops so that the after tax mortgage carrying cost and asset appreciation is more in line with rental carrying costs and the opportunity cost of the capital….needless to say without the expectation of meaningful growth in asset prices, the prices being asked can not be justified….and the prospect of increasing asset prices is in part governed by earnings, which have failed to keep pace. Look at the futures contracts for NY etc. and you will see that the market is betting that prices will fall, not rise.