The Brooklyn real estate market is showing signs of wear as banks become skittish about lending and consumers worry about the economy. Home sales in Brooklyn took a nose dive during the second quarter, and median prices dipped, according to a report released Thursday by brokerage firm Prudential Douglas Elliman.
Across the borough, the number of sales fell to 2,031, down 43.6% compared to the year-earlier quarter. Median sales prices fell to $525,000, 1.9% lower than the comparable period of 2007.
The median prices for new condominiums grew 19.5% to an average sales price of $580,402. Among the most expensive apartment deals, the average sales price was $1.4 million, down slightly from $1.5 million a year ago.
“The new product that is entering the market is skewed toward luxury apartments,” said Jonathan Miller, chief executive of Miller Samuel Inc., the real estate appraisal firm that prepared the report. More than half of Brooklyn’s newly built condominiums are labeled as luxury homes, which caters to Manhattanites moving to Brooklyn and Brooklynites trading up, he added.
With a per-square-foot sales average of $575, Brooklyn condos are still a relative bargain compared to Manhattan’s, which have an average of $1,442 a foot.
Among co-op apartments in the second quarter, the median sales price rose just 1.3% to $255,000. The number of transactions slowed by 53% to just 314.
The market will likely slow further as banks, still smarting from the subprime debacle, are demanding bigger down payments and frisking every customer for potential finance flaws, said Dottie Herman, CEO of Prudential.
“The banks are so nervous, they’re cherry-picking,” Ms. Herman said. “They want 20% to 25% down instead of 10%, and that’s going to make a big difference in prices.
(Source: Crains)
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Time to buy a few Boro Park houses on the cheap!
YWEditor, you are just becoming aware of this now? I will take you on a tour of Flatbush and show you all of the vacant store fronts and all of the signs for open house here and then you will know.
Even if the prices of homes and apartments go down 50%,there won’t be people who can afford them because they are unemployed or not working at a good paying job or learning in kolel with nobody to support them and no skills to earn a living. The less people working,the less money earned. The less money that’s earned,the less there is to spend. The less there’s to spend,the less will be sold. The less that’s sold,the less needs to be produced. It is a non-stop viscious cycle. Now,if young people,and young Jews would get a good education and be able to earn more and spend more,then the economy would be stronger. We really need to improve every area of our lives and become less materialistic and more caring about each other and daven to Hashem for better parnosso for ALL k’lal Yisroel and the world in general..