The Housing Crisis Has Arrived
That’s according to the Daily News, which dissects the unraveling economy’s effect on middle class housing here. In the outer boroughs, “house sales are falling faster than the Dow.” In the last four years, they say, Brooklyn has seen a 52.7 percent drop in home sales, from 12,089 to 5,716; that’s 37.5 percent this year…
That’s according to the Daily News, which dissects the unraveling economy’s effect on middle class housing here. In the outer boroughs, “house sales are falling faster than the Dow.” In the last four years, they say, Brooklyn has seen a 52.7 percent drop in home sales, from 12,089 to 5,716; that’s 37.5 percent this year alone. A couple of other articles spotlight individual homes in hard hit neighborhoods. In Sheepshead Bay, one family purchased a $630,000 attached brick home last year and couldn’t keep up on mortgage payments; the house has been on the market since early summer. In Greenpoint, a family has been trying to trade up from a north Brooklyn condo to a home in Westchester, but even after they lowered the price, no go: interested buyers couldn’t get financing. In Bushwick, a woman’s home is in foreclosure after tenants didn’t cough up the rent. And in Park Slope, a couple offered less than asking price, citing condo projects in the area that haven’t sold at all; they call it a “buyer’s market.” Their offer was accepted. Meanwhile, other neighborhoods poised to be the next Slope or ‘Burg are hurting, too, they write.
Trendy Neighborhoods Can’t Escape Housing Slump [NY Daily News]
City’s Housing Market Hammered in Fallout from Woeful Economy [NY Daily News]
Photo by Runs With Scissors.
By the way, I agree that there are still some buyers out there with significant cash reserves, though their numbers will likely dwindle as time goes on. In this climate, they have a clear advantage, as sellers would be wise to take a bird in the hand (all cash offer, even well below ask) than 2 in the bush (higher offer, but contingent on financing which may not come). I’ve certainly seen more and more deals fall through due to financing problems, and the seller is then left having to accept even less money for their property, as the market continues to deteriorate. Realistic sellers can still make out OK in this market – it’s the ones who refuse to accept the reality of the shifting market who will be hurt when their property lingers and they later have to make a much bigger price cut…
ditto…I would’ve thought you were more of a Cancun/Koh Samui guy. You could buy one in both of those places plus a few more for the price of a cot d’azur place. And consider the exchange rates. Mexico is at 13.35 today and Thailand is at 34.7!!!!
Snark,
We didn’t walk around Williamsburg. My friend had visited it on a previous visit and wasn’t interested in returning (I was more than happy about it, because no, I’m not a fan of Williamsburg…I find it fake, ugly and rather annoying, if I’m to be honest). And for the most part I LOVE Brooklyn, but Williamsburg is not high on my list of places to spend my weekend.
He prefers the older architecture so we hit Park Slope extensively, Gowanus, Carroll Gardens, Brooklyn Heights, Dumbo, Ft. Greene, Prospect Heights, Windsor Terrace and Clinton Hill. Also went to Greenwood Cemetary which was amazing, especially since I had never been before.
Amazing weekend.
All cash deal on 12th Street too. Original list was 549 (I think), current list is 499, and all cash offer was accepted at 485.
These deals are rare, but they are out there. I imagine they plan to stay for awhile, to ride out what will most likely be another drop from 485.
But it’s a nice place, and great location.
I’m thinking of buying a vacation home on the cote d’azur.
Actually, the euro has tanked relative to the dollar in recent weeks (or the dollar has surged, however you look at it). That, plus a looming recession in Europe, will certainly put a damper on the European buyers who were helping to prop up the NYC market. I know what 11217 is talking about in terms of the surface seeming fine, but I think a lot of the pain has not yet hit the prime hoods, but it’s starting to, as one can see by the growing price cuts on properties even in the prime hoods – always the first sign of a market turn. What amazes me is how quickly things can drop – again, the euro is a case in point. Just a very short time ago, it was at 1.60 – not it’s at 1.25. Gas is another example. NYC real estate may find itself falling faster than expected…
” have a friend in town from Europe and we literally walked through and explored about 10 neighborhoods in Brooklyn this weekend.”
Yeah, nothing like looking at property prices and then cutting 40% off the price.
Euro to dollar is tasty.
11217 – On this thread you say “I saw open houses with people coming in and out…Brooklyn feels like it’s thriving,” yet on the post about the Edge in Williamsburg you say, “This could not be worse timing. These are going to sit here mostly unsold for years.”
Why no love for Williamsburg?
I have a friend in town from Europe and we literally walked through and explored about 10 neighborhoods in Brooklyn this weekend. One would never know there is a financial crisis from our walks. Stores and restaurants were packed, I saw open houses with people coming in and out and people seemed to be happy and smiling everywhere we went.
I thought yesterday was one of the most perfect days in this borough I’ve seen in a long time. Brooklyn feels like it’s thriving, despite the fact that our homes might be worth a few less dollars than they were yesterday.