Eli Weiss
Senior Member
- Joined
- Nov 28, 2005
- Professional Status
- Certified Residential Appraiser
- State
- New York
The number of apartment and house sales declined by 44% and median prices sagged by 2% in the second quarter as economic worries plague would-be buyers.
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.”
http://www.millersamuel.com/press/view.php?V=1215707219QSCov
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.”
http://www.millersamuel.com/press/view.php?V=1215707219QSCov
