Report: Investment Sales Mostly Hanging In There
Property Shark recently released its first-quarter investment sales report for 2008, and the numbers for Brooklyn show a market that’s certainly seen better days but isn’t completely tanking. The report tracked the sales of two-, three-, four-, and five-or-more family dwellings/mixed-use properties (so no condos, co-ops or other commercial/industrial buildings). Basically, the worst trend in…
Property Shark recently released its first-quarter investment sales report for 2008, and the numbers for Brooklyn show a market that’s certainly seen better days but isn’t completely tanking. The report tracked the sales of two-, three-, four-, and five-or-more family dwellings/mixed-use properties (so no condos, co-ops or other commercial/industrial buildings). Basically, the worst trend in Brooklyn—and this was true for all the boroughs—is shown in the graph above: There was a 37 percent drop in the number of sales as compared to the first three months of 2007. In fact, every borough did worse than Brooklyn on this score, with Manhattan posting a 49 percent year-over-year decline in sales volume. The median price per square foot and median sale price on investment properties in Brooklyn didn’t change much in recent months or over the past year. The median price per square in the first quarter this year was $237, down 3.6 percent from the same period in 2007, and the median sale price was $665,000, up 2.3 percent from the first quarter in ’07. The only big drops in median prices between 2008 and 2007 were seen in transactions involving large (4-family and bigger) properties. It’d be interesting to know the extent to which big-ticket brownstone sales are keeping us (barely) afloat.
First-Quarter 2008 Investment Sales Report [Property Shark]
“Yeah – the Republicans did a great job – of wiping out our country.”
This one of the biggest lies out there! Greed and Delusion wipe out this country. The junior Donald Trumps and Warren Buffets thought easy money was “Easy”. Now our financial future is in the toilet for years to come! How many people you think can afford some of the crap out there. The Oro, Forte and mega mutant condo’s out there, HUH??!!
I can’t wait for this Fall. I will be the one break dancing!!!
http://www.youtube.com/watch?v=Tyxlaib9UF0
The What
Someday this war is gonna end…
There are three figures – two don’t seem to bad – the price per square foot and the median sale price both held up quite well. However, sales are down 37% in Brooklyn. Why? I think the fact that sales were down 37% is very bad news. I can think of three reasons to explain the lower sales figure.
1. Less Demand – it’s harder to get a mortgage; people are more fearful of investing their money in real estate; or people no longer have the money because of the weakening economy.
2. Wait and See – perhaps buyers are biding their time waiting for the market to fall and sellers are holding on waiting for the market to recover.
3. There is less supply because for some reason, all of sudden, sellers have decided to hold onto their properties.
Most likely it’s a combination of 1 and 2. Considering that this city will shed 60,000 of the most high paying jobs over the next 12 months, and those 60,000 finance jobs loses will lead to job losses in other high profit sectors such as law, sellers who are waiting for the market to recover will start to realize they better sell now. Then, when prices start coming down the sellers will be in even a greater rush to sell, buyers will be more likely to wait and bid lowball offers. Just like rising prices in any market eventually creates an irrational dynamic where people will overbid to jump on the bandwagon, the reverse effect has now begun and will continue for some time. This kind of market psychology does not change overnight and once it takes hold, it’s hard to change.
10:23 and 10:45…perfect example of both extremes!!!
” last quarter of 2007 GDP was +0.6% (slow, but postitive), first quarter GDP 2008 +0.9% (again slow, but POSITIVE)”
If you beLIEve that crap! Asshaters and Assets we are in a recession. One thing people dont look at is SALES VOLUME!! Sales volume has fallen off a cliff. The data here is for 3 months ago and I know April and May was horrible!
BTW The “Spring selling season” is over. I know we are in free fall and you better hope the comps hold up!
The What
Someday this war is gonna end…
Yeah, that’s the spirit 10:23…pour gasoline in the form of a political discussion on an already contentious real estate discussion…Love it!!!
Dear Super Republican poster 10:23
Please tell your line of obvious partisan BS to the MILLIONS of Americans whom have lost their homes and entire life savings, and jobs and healthcare.
Yeah – the Republicans did a great job – of wiping out our country.
Once again, I understand how this is a political year and it is in the best interest of Democrats (I must assume Gabby is a dem, due to the pessimistic view in the posting) to continue the party line that we are doomed economically, but let’s look at the actual facts once again. last quarter of 2007 GDP was +0.6% (slow, but postitive), first quarter GDP 2008 +0.9% (again slow, but POSITIVE). most economists say that the worst appears to be over and the “subprime meltdown” has been digested and written off in the past year by wall street. Another fact, unemployment remains stubbornly low, despite Democratic talking points about how we are all out of work 4.9%, and on average lower in this decade than in the 90’s, 80’s or 70’s.
Now, I’m appealing to the legions of Democrats and Liberals out there who continue to harp on the economic doom scenario. Take just a single minute of your time to consider these facts and ask yourselves this simple question: Sure there are problematic factors like gas prices and financial sector problems , there have always been problems in one sector or another, is it possible that more of this economic pessimism that is rampant, is more a function of the dispicable division in American politics, than actual economic armageddon?
strange that the price per square foot is down but the average sale price is higher. i think gaby is right in that maybe those big ticket brownstone sales are keeping the borough afloat.
could you argue that this is a reflection of the fact that the rich are getting richer, while everyone else is getting poorer? i don’t think this apparent reflection is that tenuous. what do you think?
look again – the graph depicts total number of investment sales (so the scale doesn’t go negative) but if you look at the the year over year numbers – they are negative