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.
It sounds like the seller in Bushwick probably had an unrealistic idea of what her property was worth in the first place. I haven’t seen her property, but the most I have ever heard of a two-family selling for is $600,000 in 2006, and hers was priced at $800,000.
I misunderstood then. Yes, it certainly looks as though it “flew off the shelf” and at a very good price given what they were asking.
edmiha…some people are not overladen with debt and have a lot of money stashed away. It doesn’t take guts to make an all cash offer when you have all the cash and then some!!!
I don’t think rates are all that low here (they are not high either). If rates come down to the 5% level (or below) then it might make sense for these people to actually take out a mortgage. You’d have to get into an environment where you would think the stock market and your other investments are going to return more than 5% on a yearly basis and I don’t think we are there yet!!
DIBS – I don’t see how you could interpret her tone as concerned in that comment – she was pointing out that the apt flew off the shelf.
They asked 599 and were offered 570. I’m not concerned that the place went below-ask; rather, I’m shocked that anyone has the guts to make an all-cash offer of over half a million bucks in this market! I guess the point of my anecdote is that, at least for some buyers and sellers, “normal” deals are still getting done…
If this comment doesn’t prove that Jerry Minsky is not very smart, I don’t know what does…
“You don’t have the 30-year-old hipster from Wall Street buying the $3 million house like in 2006,” said Minsky. “The party’s kind of over.”
I’m sorry, but what hipster that you know works on Wall Street and buys 3 million dollar brownstones in Park Slope?
edmiha…what was the ask that they took the $29k haircut??? If it was anything above $290,000 then they got the “what used to be normal” 10% dicount to ask offer. Don’t know what you’re so concerned about!!!!!!
If this ask price was anywhere between 500-600 as you may be suggesting then your concerns are based on bubble mentality and you’ve never seen a cycle before!!!
Three words: Home Price Index. In NYC it is currently at 192. (down from peak of 215.83 in June 2006) – There just isn’t enough money to justify these prices. The housing market has been over inflated for 10 years and now that money isn’t abundant (it’s still historically very cheap), you can expect a pretty striking correction.
Anecdotal evidence:
Our upstairs neighbors listed their 1+ br co-op a couple of weeks ago (center Slope). We were upset–we don’t want them to move away!–but we figured that in this economy they’d be there for a while. Nope–they received and accepted an all-cash offer (29k below ask) the week of the first open house.
The last two apts to sell in our building (both in the 500-600 range) have been all-cash sales.
Thats some s.e.m.