HMS Market Report: Pretty Much What Miller Samuel Said
If you leave out a few neighbohoods like Bedford Stuyvesant, East New York and Brownsville, 2008 wasn’t such a bad a year for Brooklyn real estate, says a new report from appraisal firm HMS Associates. While volume was down by more than 50 percent from the fourth quarter of 2007 to the same period in…
If you leave out a few neighbohoods like Bedford Stuyvesant, East New York and Brownsville, 2008 wasn’t such a bad a year for Brooklyn real estate, says a new report from appraisal firm HMS Associates. While volume was down by more than 50 percent from the fourth quarter of 2007 to the same period in 2008, average prices for the quarter were down just 2 percent; for the year as a whole, prices rose 2 percent. We are now seeing a very pronounced continuation of the trend from the third quarter of 2008, with more inventory sitting on the market and not moving, said HMS founder Sam Heskel. When you look at fourth quarter numbers separately, the drop-off is even more dramatic. HMS found that the best price appreciation was is Brooklyn Heights, Carroll Gardens and Sunset Park; Boerum Hill, Cobble Hill and Crown Heights were on the losing end.
Elliman: Condos Down, Co-ops Flat, Brownstones Up in 4Q [Brownstoner]
Photo by Bondidwhat on Flickr
Your ball analogy is its own kind of contortion.
“If you leave out a few neighbohoods like Bedford Stuyvesant, East New York and Brownsville, 2008 wasn’t such a bad a year for Brooklyn real estate…”
But you can’t.
The run-up originated in the blue chip nabes and spread out to the fringe ones. The reverse is true for the collapse. The boom/bust is a boomerang that will come home to roost. Until the collapse runs it’s course, there are endless ways to spin the numbers.
Throw a ball straight up into the air. Although it will slow down (decelerate, drop in rate of change) when it approaches it’s peak, it will still gain altitude (rise in position) until it gets there. Home prices have still recently increased but their RATE of change has been quite “in the red” for some time now. With only a +2% change for 2008 (as spun even though the metro-wide top was 06 or 07), I’d say the master’s of the RE universe are looking at their own version of the peak face-to-face. With only three ‘hoods left (The Heights, The Gardens and The Park), they will merely be left with only a few celebrated blocks (near the promenade) and then individual property types (limestone?) to spin the numbers with. And then even those blocks and types will get yanked down into the abyss.
***Bid half off peak comps***