REBNY Condo Market Report: No Need to Panic (Yet)
The Real Estate Board of New York has started releasing monthly reports on residential sales in Brooklyn, and the one compiled by the trade group for April ’08 shows moderate gains in sales volume and prices over April ’07. REBNY’s data, which is based on sales lodged in city records and is independent of listings…
The Real Estate Board of New York has started releasing monthly reports on residential sales in Brooklyn, and the one compiled by the trade group for April ’08 shows moderate gains in sales volume and prices over April ’07. REBNY’s data, which is based on sales lodged in city records and is independent of listings on its ResidentialNYC site, shows the average condo sales price last month was $656,784, a 4 percent bump over the average price last April. The largest jump in recorded sales prices was in the South Slope, where new developments coming to market boosted average prices up 96 percent, to $608,824, and there were three times as many sales in the neighborhood as in April 2007. Park Slope as a whole had a big increase in sales volume, with 43 sales recorded last month as opposed to 15 the same time last year. (Full press release on the report’s findings on the jump.) The organization is releasing the monthly condo reports “because of high anxiety in the market,” says Mike Slattery, head of research for REBNY, who notes that the numbers are influenced in a big way by new projects coming online. ‘Course, since the data REBNY uses is based on public records, stats for April 2008 probably give a better picture of the market three to six months ago, since sales take a while to go from being in contract to showing up in NYC records. Nevertheless, based on this report, the condo market isn’t looking as scary as some other recent press has made it out to be. Still and all, we’ll see…
Condo Market: You Can’t Handle the Truth! [Brownstoner]
Photo by the vamlumtimes
SOUTH PARK SLOPE, GREENPOINT, AND WILLIAMSBURG POSTED BIGGEST PRICE SURGES
NEW YORK, May 27, 2008 The average sale price for a condominium in Brooklyn increased four percent in the month of April to $656,784, compared to the same period last year, according to monthly sales information released by ResidentialNYC.com, the city’s most comprehensive residential real estate web site with thousands of exclusive home listings.
Prices were up significantly in the borough’s primary condominium corridors. South Park Slope posted the largest price increase as average prices for condominiums soared 96 percent to $608,824. The number of sales also skyrocketed from three sales in April 2007 to 21 sales in April 2008. The surge in price and sales is the result of new condominium developments in that neighborhood.
Greenpoint average condominium prices also jumped significantly in April, increasing 40 percent to $560,947, while the number of sales in that neighborhood jumped from seven sales in April 2007 to 25 sales in April 2008.
The price increases for condominiums in Brooklyn are the result of new units being built and the continued appeal of its distinctive neighborhoods, said Steven Spinola, REBNY President. Several Brooklyn neighborhoods are now seeing the results of rezonings in the last several years that have enabled hundreds of new condominium units to be built. Further, based on the April sales information, the average price increases are quite substantial and demonstrate the continued health of the housing market in the borough, despite a slowing market around the country.
The monthly sales information also found that the average prices for condos in North Williamsburg and East Williamsburg were each up 12 percent to an average price of $798,000 and $510,000 respectively. Overall, Williamsburg had 35 sales compared to 31 last April.
Park Slope overall saw a jump in the number of sales from 43 sales in April 2008 compared to 15 sales in April 2007.
The Fulton Ferry area posted an average sales price increase of 20 percent to $1,246,250. The high price of units in Fulton Ferry is the result of the sales of large lofts and new luxury units.
About ResidentialNYC.com
Launched in September 2007, ResidentialNYC.com is the first comprehensive Web site enabling homebuyers to link to thousands of exclusive home listings in New York City from thousands of REBNY residential member brokers. Since its launch, ResidentialNYC.com has logged more than 11.5 million hits, and 461,000 page views from 130,000 unique visitors.
The site provides access to condos, co-ops, townhouses and homes both for sale and for rent. ResidentialNYC.com also contains a wealth of information about New York City’s residential real estate market, neighborhoods, school districts and more, making it the only true one-stop destination for New York City homebuyers on the Web.
The data is skewed by shifts in the composition of the inventory, with large new buildings coming on the market and dominating sales.
I suspect the cost for an older unit in a small building is slipping.
Still, the market is being affected by two contrary (for Brooklyn) trends — the deflation of a national cyclical housing bubble of epic proportions, and a structural shift in the relative desirability of urban and suburban locations in favor of the former. The structural shift may be holding off the cyclical downturn for now, but prices will still have to come down.
And if prices go up, nothing will be built to meet the demand.
“The Developers are STILL building like mad and there are tons of units coming online very soon.”
One problem with this statment, the What.
It’s totally false.
New builds are down 64% this year over last. New ground is not being broken on much of anything right now. When the current and soon to be on line inventory is sold in the next year, we are in for a SERIOUS inventory shortage in NYC. You know where prices will go then?
Yup.
Hey, What,
Your newfound fame seems to be wearing well. Your 11:10 post largely adheres to and supports your general point of view on the market, but is presented clearly and hews closely to stated facts, and has no vitriol or invective, not to mention your acknowledgement of the existence of some contrary facts. I think your overall message gains credibility this way. Keep it up.
“The Forte, Oro”
If sales here are sluggish, it’s because it’s a bad product. Both are fine. Not anything to write home about. One Hanson, One Brooklyn Bridge, On Propsect Park are higher quality and doing much better.
Good product sells. Crappy ones do not.
10:57 – buying is definitely better for you, regardless of price. The risk is only in staying out of the market. The market always goes up, and rent is gone forever while interest/taxes/repairs … um …
Anyway, buy now, so we can get out!
REBNY is counting only CONDO sales — thus it almost completely reflects the state of new construction. New construction will do fine until it doesn’t.
Market 101: No new land. Prices may be higher than construction costs or rental values, but there is no conversion of rentals to sales, no new construction, no renovation, no expansion of the acceptable places for people with money to live. At least if you ignore the Watchtower conversions, Flatbush Ave, Fourth Ave, Gowanus, the South Slope, BedStuy, DUMBO, the continued demise of rent control, renovations and upgrades.
Well… I see that sales at 1 Hanson Pl. is very strong (No BS). But, there are some signs of weakness in our market. The Forte, Oro and other are going very badly. The new mortgage guidelines are making condo buying a nightmare. Why you ask? Because you fill out a Verification Of Rent or a VOR. The Underwriter looks for “Payment Shock” and ability to pay your bills. If you was paying 2500.00 a month for a 2 Bedroom in Park Slope (No PS BS Please). Then you are buying a Condo that with Mortgage payment and Maintenance will come you to 5100.00 a month with no increase in income the Underwriter will tell you to “Pound Sand”, Loan denied! The closings that are going on was from last year and the early part of this year and I would like to see the numbers for the rest of this year. I think the Condo market is going to get killed! The Developers are STILL building like mad and there are tons of units coming online very soon. Last but not lease Interest rates are going back up this year, believe me on this one. I think the free and easy money is dead. RIP Mutant Real Estate Bubble.
The What
Someday this war is going to end…