PropShark: Brooklyn Forcs Up 20% Last Month
More bad news on the foreclosure front, this time from Property Shark’s February foreclosure report. The report, which tracks properties scheduled for foreclosure for the first time, found that NYC foreclosures increased 13 percent from January and were up 113 percent from February ’07. Any good news? Brooklyn’s not hurting as much as Queens, where…
More bad news on the foreclosure front, this time from Property Shark’s February foreclosure report. The report, which tracks properties scheduled for foreclosure for the first time, found that NYC foreclosures increased 13 percent from January and were up 113 percent from February ’07. Any good news? Brooklyn’s not hurting as much as Queens, where the number of foreclosures more than doubled compared to February ’07. Nevertheless, Property Shark found a 20 percent increase in Brooklyn foreclosures last month over January (there were 53), and East New York and environs had the seventh-highest number of foreclosures in the city by neighborhood. The numbers we’re looking at here don’t exactly signal an epidemic—Property Shark records 582 foreclosures in Brooklyn from Feb. ’07 through last month—but they sure don’t seem insignificant, either.
Property Shark
Report: Subprime Foreclosures Rampant in Brooklyn [Brownstoner]
Bill Would Temporarily Halt Foreclosures [Brownstoner]
12:23, I hardly see myself as clueless. What about yourself? “Plenty of cheap rentals for even poor people to live in?” because of overbuilding and foreclosures? Ha!
I may not be a real estate expert, but I know people. I agree there is/will be a condo glut, but even if all of them go as rentals, they will not be cheap rentals. Any developer will want to recoup losses, and hopefully, make some money. Nothing wrong with that. Foreclosures will either be held on to by the banks, or be sold at less than market rate. In any case, the same holds – a landlord/owner will want to get as much in rent as the market will bear.
The object here is to make money, not be munificent givers of cheap apartments or solvers of housing shortages. Money. I agree that delapidated buildings need to be rehabbed, but again, unless underwritten by incentives or programs specifically for affordable housing, any developer is likely to want to make a nice profit.
Therefore, no matter what the economy does in the short term, rents, even for the least among us, are not going to be dropping to the basement – no cheap rentals for the poor, or anyone else. That, my friend, may be cynical, but is common sense.
Oh, of course the city is growing – up and out. If you can’t see that, it’s not me drinking the koolaid. Those cranes, dumpsters and construction sites all over the city aren’t art installations.
“historic norm” prices for real estate does not exisit in NYC. we purchased our 1st brownstone in PH for 30k.
I’m in it for the longrun and as long as they keep raising our metro card prices will always rise.
This nation including NYC aka the capital of the world was not built on fear just green backs.
If you’re soft get lost!
It’s funny that we are not even out of the subprime mess, and people like The What are already complaining that lenders my not lend in “marginal areas”.
Also, to The What and all the other doom and gloomers, until there is an actual signigicant drop in prime NYC real esate values, your “the crash is coming” posts seem a little silly.
I’m pretty optimistic about prime area real estate prices. That’s not to say that I would be surprised at flat prices or a modest loss of value in the next year or two, but, lots of people still want to live in NYC, NYC is safer and clearner than it’s ever been, and the recession will eventually end. If you are planning to live someplace for the next 3-5 years, I wouldn’t hesistate to buy this year (although there wouldn’t be any rush as I don’t see prices going up this year).
MM @ 11:43,
That’s pure broker/NAR propaganda. This city is not growing significantly, if at all, and you don’t need land to build. You can build up (think air rights) or convert. Dilapidated buildings and vacant lots are not as abundant but still plentiful.
Values will never appreciate from the highest level you will ever see in your lifetime. There is no such thing as “buying” at today’s prevailing prices. You’re only overpaying for a long term lease for the rights to renovate in exchange for taxes, fees, holding costs, depreciation and thus losses.
You don’t need to overpay for a long term lease, sorry I mean’t “buy”, in order to put a roof over your head. The overconstruction of condos and the coming foreclosures (you gotta be retarded to find comfort in the above graph considering all other economic news out there, c’mon people) will provide plenty of cheap rentals for even poor families to live in. That’s why people in other cities are “walking away” from their mortgages – there’s an epidimic of sale-to-rental conversions dumped onto the rental market. If you don’t think this will happen in NYC, you need to start counting cranes, permits, concrete trucks and “for sale” signs.
Your cluelessness (and anyone else’s who agrees with his post) is alarming. But sense aint common nowadays.
“But what are the alternatives for someone who is not rich, or liquid in their assets? Your average working Joe and Jane? Knowing about the Mutant Real Estate Bubble is one thing, but what can your average person do? All I can do is hold on to my home, pray my industry and livelihood doesn’t disappear, and try really hard to not buy stupid stuff, and save as much as possible. That’s all most of us can do.”
Reduce your debt load ; ^ }. Oh by the way AMBAC stock has been suspended on the market. This will speed up the rapture! RIP Mutant Real Estate Bubble.
The What
BTW Morris I understand where you coming from. You take great pride in your neighborhood and your house. I think you will do fine because you don’t look at your house a “investment”. Be well Morris
The What, I agree, I don’t want the environments of the 70’s and 80’s to return either. Nor do I want angry and disenfranchised mobs of people destroying our communities and themselves. It took almost 50 years for some communities to come back to some semblance of normality, and some never did.
But what are the alternatives for someone who is not rich, or liquid in their assets? Your average working Joe and Jane? Knowing about the Mutant Real Estate Bubble is one thing, but what can your average person do? All I can do is hold on to my home, pray my industry and livelihood doesn’t disappear, and try really hard to not buy stupid stuff, and save as much as possible. That’s all most of us can do.
Except for hurting those who bought houses very recently, it would be *GREAT* if prices declined to what they were in the 70’s and 80’s. Without the astronomical interest rates that prevailed at the time of course. (Oh, I remember. Bought our first house in ’82 from relatives for cash to avoid just that.)
For NYC to continue to be livable for the middle class, the prices *must* come down no matter who it hurts. I’m a homewoner myself and I love that on paper it’s worth so much, but I worry about my kids and others starting out and their ability to live here.
Morris (my comma key is stuck) The issue is affordability with housing. Housing will have to return to historic norms not this Mutant Real Estate Bubble we are having. Credit conditions will tighten and housing prices will fall but I worried that minorities will be effect by the falling impact of house prices. I agge that people need shelter but at what cost? I don’t want our neighborhoods returning back to the 70’s and the 80’s. Those where hard times and with the current credit environment that a big possibility.
The What
Someday this war is gonna end…
When communities like ENY, Bed Stuy, Crown Hts were legally and seriously redlined thirty, forty years ago, people still found a way to buy homes, pay their mortgages and set down roots in these communities. Now those homes are worth some serious bucks.
Point being that no matter what the economy is doing, or what banks are up to, people need shelter, and will find ways to pay for it. In my humble, non-professional financial guru opinion, real estate is not stocks and futures. Those are not needed for survival, but shelter is. Anyone buying anywhere, even ENY, and holding for the long run (over 10 years) will see their investments and/or homes appreciate. This city is still growing, and they aren’t building any more land. The “fringe” will not be fringe forever, and while you may not be renting or selling to hedge funders, everyone, even their nannies, need a place to live.