Rising Inventory Bad News for Burg
With over 5,000 new apartments (condos and rentals) expected to hit the Williamsburg market this year and next (combined), it doesn’t take an Economics PhD to predict what the impact on pricing is likely to be or what it could mean for the number of foreclosures in the area. There are over 1,800 new condos…
With over 5,000 new apartments (condos and rentals) expected to hit the Williamsburg market this year and next (combined), it doesn’t take an Economics PhD to predict what the impact on pricing is likely to be or what it could mean for the number of foreclosures in the area. There are over 1,800 new condos coming online this year and another 1,200 or so scheduled for 2010, according to The Real Deal. A bigger problem than pricing or over-supply, though, is lack of financing. Very few lenders (if any) are willing to finance condo purchases in buildings that don’t already have the large majority of their units in contract. “The pace of activity [in Williamsburg] is well off from last year,” said Miller Samuels’ Jonathan Miller, “not because of lack of demand, but because buyers are having a very difficult time getting financing for projects that aren’t 70 to 75 percent sold already.” Unless that changes, developers have few options other than to go rental (which their financing partners don’t always want to do) or lose their properties. In fact, banks have already begun foreclosure proceedings at the Factory Lofts at 66 North 1st Street, Warehouse 11 at 214 North 11th Street and the Metropolitan at 349 Metropolitan (above). “It used to be enjoyable, exciting to open a new building,” said David Maundrell, president of Aptsandlofts.com, who provided the inventory predictions aboe. “Now it’s nerve-wracking.” Indeed.
More Foreclosures Likely as W’burg Inventory Grows [TRD]
5,000 units will hit the market in wburg;
so if you compare with this figure:
New York City grew by more than 53,000 residents for the 12-month period ending July 2008,
http://www.nypost.com/seven/07012009/news/regionalnews/nyc_grows_at_fast_clip_176965.htm
i think that there won’t be enough new projects for everybody (LOL)
Just spent a few weekends going though open houses in the Burg. Tons and tons of stuff for sale but many still pricing it as if it was 2007. And how about a $1000 maintenance on a 2 bedroom condo in a building with part time doorman, no gym, and no real amenities to speak of. Thanks but somebody has to wake up and smell the roses. I have time on my side – prices are going down big time.
i do know that each person’s tax liability based on their income matters when deciding to buy v. rent in any economy. obviously, when you own their are advantages to having your own space in that you can decorate, etc… to your desires and make it your space.
obviously, many burg apts. will go rental and the 5000 number is bogus as stated here because much will not get built or will be delayed.
given the amount of services and amenities and proximity to manhattan won’t change, it’s a great place to live in the here and now.
one interesting note is that restaurants and also other professional businesses are opening like crazy. Roots, a new photo studio on N.14th, opened and Resource magazine sponsored a party there last night – i went and heard that 2000 people came (it’s a giant place!). also, factory studios just opened a 3500 sq ft studio too. already, many many people in the photo industry either already live and/or work in the burg, so there is a movement to make williamsburg the new photo district. many moons ago it was chelsea, but everyone was very priced out. the increase in that kind of commercial development will also help all the stores and restaurants.
had 3 shoots in williamsburg and greenpoint in just the last 2 days. 2 locations shoots in restaurants chosen by an out of state client to shoot in and one in a williamsburg studio. loved it.
“It can’t just be the neighb or the apartment since you probably have thousands very similar to choose from? ”
I am starting to get serious about buying after years of renting… I live in a new building in LES (LOVE THE HOOD) own by a friend and I love it. I love our central air, I love our W/D, I love our wall to wall windows and I love our shiny wide plank dark wood floors.
While I would LOVE to stay in LES, unfortunately I can’t afford to buy in our building. However, in bburg there are inventory that looks like what I live in now (designer condos) for about 500k and a couple blocks from the bedford L. The vibe is the same even if it’s a bit over expose, the crowd is creative.. young and certain parts are ethnic chic.
Where would I find something like that in in lower Manhattan with the same vibe and price?
If anyone can enlighten me.. I would really love to know. I would be more than happy to consider it.
I think my point is… while bburg might be over-saturated in terms of housing stock but maybe it’s just the right kind of lifestyle choice for some. I am really happy knowing I can actually afford a shiny glass condo close to a metro line in a fun, young and creative neighborhood. What is the downside to that?
Joe,
Thanks for making the rest of us pay more by you paying less.
I’m looking forward to those $1200 rents. Paying $1400 in WT “rent stabilized” right now. It would be great even if the place will probably be a lot smaller than the huge pre-war I have now…
“You can buy a 1 bedroom in a building off Bedford (non-waterfront) and your monthly output will be 2,100 (including mortgage, maintenance, PMI, tax)”
Zero down?
***Bid half off peak comps***
The number of units described in this study for this and next year is based on plans filed with the DOB. That number is far greater than the number that will actually be built. There are many projects yet to begin that will simply be shelved. There are others that have had funding pulled before actual construction began, and there are those that are dead in the water midstream in the process.Thats in addition to those that have shifted from condo to rental. Are conditions bad? Yes. Doomsday? No. Unless you’re an architect. It will take years for the backlog to be flushed through the system.
“not because of lack of demand, but because buyers are having a very difficult time getting financing”
Uhhhh…demand = bank approved bid (low LTV if low % sold). If not, I DEMAND that a Lamborghini Diablo be delivered to me IMMEDIATELY with zero percent down, zero interest and a 100 year term!!!
***Bid half off peak comps***