Red Nabes Lose: Condo Price Cuts all the Rage
All the neighborhoods in red above saw more price decreases than increases on condo units between mid-February and mid-May, according to StreetEasy numbers the Real Deal crunched. The data shows that there are more price cuts these days than price increases in both Brooklyn in Manhattan. In Brooklyn, there were cuts at 183 units, with…
All the neighborhoods in red above saw more price decreases than increases on condo units between mid-February and mid-May, according to StreetEasy numbers the Real Deal crunched. The data shows that there are more price cuts these days than price increases in both Brooklyn in Manhattan. In Brooklyn, there were cuts at 183 units, with the average price decrease totaling $42,195. At the same time, there were 103 listing increases averaging $34,660. The stats for Williamsburg are probably the most interesting: The neighborhood had the greatest number of price changes, 104, but it ends up green on the map because there were a bunch of price bumps at Northside Piers. Take Northside Piers out of the picture and there would have notched 40 decreases and 11 increases. Clinton Hill and Park Slope fared poorly in the tally, with the former lodging reductions on 24 units and increases on only 3, and the Slope seeing a total of 18 decreases and zero increases. Brokers say the numbers for the two neighborhoods may have reflected listings where brokers/developers had loose definitions of the two neighborhoods’ boundaries (Bed-Stuy and South Slope, maybe?). Overall, not the prettiest picture.
Condos on the Chopping Block [The Real Deal]
Graphics from The Real Deal.
Well written Brooklynnative. But I think it translates to a Asshat like this, Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah …
They don’t get it! Sad as hell..
The What
Someday this war is gonna end…
“my husband is an internet advertising analyst”
It is continually amazing the myriad ways people can make money. Why anyone bothers going to college escapes me.
my lord you don’t have a clue what you’re talking about. maintstream media intrest in financial markets is a dangerous thing.
I still haven’t realized that BKN is TW. Spell check came up blank.
The most overextended are not people, but the brokerage houses and hedge funds. Lehman is leveraged 37 to 1. That means for every $1 of equity they have $37 in debt. (Lehman would never allow an individual investor a margin ratio like that, I wonder why.) The brokerages and hedge funds are margined to the hilt, just like Bear was, and now their creditors are getting worried they might not be able to get their money back. The credit crisis is just getting into the second round now. The monolines have just been downgraded and the implications are huge (see argument below).
A lot of people were critical of the Fed for “bailing” out Bear. The liberals hated it because they see the government as bailing out the banks but not people in foreclosure. The conservatives were none too happy because it allows the liberals to make that argument in favor of government intervention to now help out people in foreclosure. Will the Fed bail out Lehman, who knows? They are allotted a certain amount of money every year by Congress and they might not even have enough left.
Anyhow, NYC largely escaped the subprime mortgage debacle because, except for a few neighborhoods, there were few subprimes loans made. However, this is the ciy where the loans were actually securitized – in other words packaging the mortgages as bonds and selling them to investors. It’s the people at the banks who personally profitted from these loans through huge bonuses. These people are not losing their jobs by the tens of thousands and the NYC always suffers more than anywhere else when Wall Street gets hit. If you don’t think the NYC is going to get hit hard, and hit real hard, you got your head stuck too far up your asshat, asshat.
Monolines lose AAA rating –
An event we have been warning about for months which could be catastrophic for markets happened Thursday. S&P downgraded bond insurers AMBAC and MBIA. These insurers are no longer AAA rated. What does this mean? It means that trillions of bonds insured by these companies, that relied upon the AAA rating of these companies for their own AAA rating, including municipal bonds, are now worth far less than they were yesterday. That means banks, insurance companies, and other major financial institutions have to write these bonds already in their portfolios down to new lower market values, jeopardizing regulatory capital levels, impeding allowable lending limits. This means the bonds in their portfolios are now less liquid than yesterday. This means it will be incredibly difficult for many municipalities to issue new bonds to raise capital. This means access to loans will be constrained. This is a disaster. The Plunge Protection Team knew this, so made sure it did a slight of hand, taking away the focus, driving stocks higher at the open, handing the baton to shorts forced to cover, to continue the rally deep into the day. It is all a farce of course. This patient has cancer and the doctor is not going to let him know. Thursday’s huge stock rally came on a day when oil rose 6 bucks, the Dollar fell half a buck, and home foreclosures hit a record high, as if those were good things. Think about that.
(Bet you all never realized Brooklynnative is the What!)
“also, i think you underestimate personal family wealth of many NY’ers. there are many people with significant family money. my father could simply buy my mortgage in a heartbeat if necessary.”
The problem with this argument is that family money is old money. This factor was present long before the recent boom took off. Why didn’t the boom take off sooner, before 1997 or 2001? No matter how you slice it, it all comes back to cheap, easy credit. Family money cancels out.
“also, i think you underestimate personal family wealth of many NY’ers. there are many people with significant family money. my father could simply buy my mortgage in a heartbeat if necessary.”
One more thing, well 2. You better hope that your Father is well hedge. I mean he has his eggs in different baskets.
Ex-champ Holyfield having financial woes with home, child support payments
http://sports.espn.go.com/sports/boxing/news/story?id=3428080
A legal notice that ran Wednesday in a small local newspaper said Holyfield’s estate will be auctioned off “at public outcry to the highest bidder for cash” at the Fayette County courthouse on July 1. The 54,000-square-foot home — located on Evander Holyfield Highway — has 109 rooms, including 17 bathrooms, three kitchens and a bowling alley.
And don’t forget about Ed McMahon, Housing Crisis Casualty
http://thelede.blogs.nytimes.com/2008/06/06/ed-mcmahon-housing-crisis-casualty/?hp
‘’If you spend more money than you make, you know what happens,’’ McMahon said […] ‘’You know, a couple of divorces thrown in, a few things like that. And, you know, things happen.’’
See Asshats! Shit happens!
The What
Someday this war is gonna end….
” we were in no way over extending ourselves. After taxes, and including cc’s – our monthly is about $3500 – sorry, but that’s nothing! we have 2 incomes and my husband is an internet advertising analyst. his field is growing by leaps and bounds.’
First I hope that you and your husband is fine, I really mean that. The points I’m making is we have overextend ourselves. The Mutant Real Estate Bubble will affect our live for years to come. There is no more trust in American securities. The Investment Banks has/is engaging in fraud.. Ask yourself a couple of questions.. Did you have a 401K plan? Do you have a Money Market account? Did you have pension? If you answered yes to any of these questions then they a stuffed with these fraudulent securities..
Plus people that had nothing to do with this MREB has to suffer the consequences of higher Gas, Food and Rent/Mortgage payments. Very soon our country will be in a dire financial situation and we have done so much dirt I don’t see anyone helping us.
When people find out that their “Asset” is worth anything they will walk away. That will put pressure to your situation and let’s see how that works out!
This are going to change real fast after this election and the next President will face a challenging situation.
The What
Someday this war is gonna end…
hi Mr. What – I really don’t mind your comments, but you seem to think that everyone’s income is going to go down or disappear. I am a condo owner, and first of all, we put 30% down, not 10% – we were in no way over extending ourselves. After taxes, and including cc’s – our monthly is about $3500 – sorry, but that’s nothing! we have 2 incomes and my husband is an internet advertising analyst. his field is growing by leaps and bounds. i’m in a creative services industry and own my own business and although we have variations in our level of business, I continual to make a healthy salary and have for years.
not everyone works in finance and my neighbors seem to be doing really well. in fact, one neighbor is selling and upgrading condo’s as we speak.
also, i think you underestimate personal family wealth of many NY’ers. there are many people with significant family money. my father could simply buy my mortgage in a heartbeat if necessary.