Williamsburg (Northside, Southside, Waterfront) - the state of the market

Here you'll find the highest demand, and in the last six months generally you were looking at about $770/sf. Go south and it's been around $723/sf. Go toward the waterfront and were talking about $830/sf. On the very high end, penthouses with outdoor space and protected views you were talking $1200/sf. Be very careful doing comparisons in this area - there isn't a greater range of product anywhere else in North Brooklyn (i.e. nearly all the classic loft buildings are here). Deals are scarce and most don't have to negotiate. There isn't much on the market right now. Studios and 1-beds are between $515K and $900K (large ones of course). 2-beds are available for $699K - $1.8M, most hovering around $1M. 3-beds run $995K - $2.5M. You'll also find some in-between categories that can convert.

Only a handful of townhouses have traded in the last 9 months. Single families went for between $885K and $2.025M (this was a top-shelf reno). Two's and Three's went for between $750K and $2.7M (that one had a commercial unit too). There are only a few on the market now, between $1.3M and $1.6M. In this area you are most likely to find sellers pricing ahead of the market just to see what they can get away with. Sometimes they win, sometimes they languish for months.

Photo by Barry Yanowitz at www.BarryY.com

East Williamsburg - the state of the market

Looking at condo closings in the past 6 months or so, the average price/sf comes up to about $629. Not many oddballs in this mix so this number feels about right. Most are within 10 min of the L train. The variation seems largely based on quality of construction and finish. The top of the pile was 174 Jackson, which was beautifully executed and perfectly calibrated for this market. There's not much on the market now. Large 1-beds are going from $500k-$700K (no small ones left). 2-beds are going from $575K-$750K.

Single family townhouses in the last 9 months have traded for around $600K, but that has changed rapidly. One just went into contract for $750K after multiple bids. Nothing else to pick from right now. Two and Three-families have traded for about $750K - $1.1M. Prices are going up though, and what you'll find currently on the market are houses for about $1.1M-$1.5M.

Photo via www.Forgotten-NY.com

Greenpoint - state of the market

Looking at about 6 months in closed condo sales, you'll see a rough average of about $577/sf. With a few exceptions, the general trend is ppsf in the 500's to low 600's on the Queens side, and in the mid-600's to 800 the closer you get to Williamsburg. There are a few odd-ball curve-busters in there dragging the average down, and in general the larger the apartment the lower the ppsf, so this average doesn't take any of that into account. There's not much on the market now - only about four 1-beds under $500K, maybe another four 2-beds under $850K. There are a couple large one-beds and convertible-2's in between.

Houses, as usual, are even more rare. It's not as meaningful to list price/sf with townhouses as there are so many variables that go into the price (condition, indoor/outdoor space, location). Generally speaking we group them into 1, 2 and 3 families. Anything larger is more for investors, and that's another newsletter. Since last August, one-family townhouse recorded sales listed from $725K-$950K. Two and Three-families went from $600K-$1.3M. Right now there are a few on the market from $690K - $1.3M. Prices are going up and anything decent will have multiple offers. Here, as in Williamsburg, the townhouse market is a tricky one. Every deal is an adventure, but not to worry...it's a rollercoaster I've ridden many times and lived to tell.

Illustration by Two Arms Inc. at www.TwoArmsInc.com

The Local Coffee Renaissance

Williamsburg and Greenpoint have voted with their pocketbooks, and we continue to go deeper with the new high-quality coffee choices. The new expectation is that you shouldn't have to go far for a really good cup, something I wholeheartedly subscribe to. The bar being very high now for all-things-coffee, I think now it's really about the vibe - if you can get a good cup all over the place, then where do I want to be regularly? Anyway - here's a snapshot of some of the stand-outs. 

OSLO COFFEE ROASTERS (133 Roebling @ North 4th / 328 Bedford @ South 2nd) - local latte pioneers, elevated the game, nice place to read the paper

EL BEIT (158 Bedford @ North 8th) - attractive people, rustic, worldly

CAFE GRUMPY (193 Meserole @ Diamond) - very local, rustic, authentic, laptops

TOBY'S ESTATE (125 North 6th St @ Berry) - sunny and open, effusively Australian and decidedly not west coast (like most of the others)

BLUE BOTTLE (160 Berry) preciousness in simplicity, west coast coffee geekery, people watching

URO CAFE (277 Driggs @ Leonard) - laughing family, quirky ease, Polish punk 

VARIETY (368 Graham @ Conselyea / 145 Driggs @ Russell) - almost perfected the Williamsburg cafe, disheveled minimalist, Portland roasters, friendly hipsters, local art

CAFE ROYAL (195 Nassau @ Humboldt) - office of choice by freelancing Greenpointers 

BAKERI (150 Wythe @ North 8th) - upscale homey decadence

SECOND STOP (524 Lorimer @ Ainsle) - old-tymey rustic preciousness

GIMME! COFFEE (495 Lorimer @ Powers / 107 Roebling @ North 6th) - modern minimalist, vanguard of coffee snobbery

MARLOW & SONS (81 Broadway @ Berry) - established pioneers, slightly older demographic, big bands and Steely Dan.

UPRIGHT COFFEE (860 Manhattan @ Noble) - classical music, earnest, friendly and clean, standing room only

This is by no means comprehensive - there are others, including restaurants (i.e. Five Leaves) and corner stores (Depaneur) that reach for that high bar too. I had to stop somewhere ;)

Blue Bottle Cafe photo by Rebeca and Diego-Max, Clown by Uro Cafe

The State of the North Brooklyn Market

Greetings Everyone,

I hope this reaches you all in good health and spirits. I've got news for both buyers AND sellers this issue. Because it's been so long since sellers got some love from the market, I'll start with them.

SELLERS
For Williamsburg/Greenpoint, the state of the market is...strong! 2011 saw steady growth most of the year, and then after Labor Day it kicked into high gear. The $600-800K 2-bedrooms were the hottest seller, and we have precious little left in this range. I literally sold the same 2-bed in August and September, and the latter went for $60K more (first buyer never signed, and regretted it). The glut of new development in North Brooklyn is partially due to the end of the tax abatement program in July of 2011. If a developer didn't have their stakes in the ground and applications in, they don't qualify for the tax abatement. Therefore there was a race to make that deadline. 2011 many of them came to market and inventory peaked. This year we're almost through those and there are perhaps a few stalled projects that may go condo. Most of the new buildings going up are going to be rentals. At the same time, in the prime areas we're just starting to see some owners who bought at the height come above water and be able to sell without a loss. If things keep going like they are, inventory will retract sharply this year and prices will go up even more. And if that's not enough good news, the rental market is even hotter, so if you want to rent your condo you may be able to get more than you thought. If you want specific info on your unit feel free to contact me.

BUYERS
The good news is that there are still some deals out there. What's happening is that list prices have gone up slightly, but what's changed hugely is how negotiable prices are. Sellers are sticking to their price or just giving in $5-10K that they built in to make you feel good. And that's it. The huge mistake I'm seeing buyers make during this fall/winter is to not acknowledge how much the market has changed and get frustrated or disappointed when owners aren't doing what they did 6 months ago. If you do your homework by seeing exactly what you can get for your money and accept the market as what it is right now, you can get what deals there are left. As your man on the ground in this neighborhood, I'm telling you that in a year we're going to look back and realize that this was when the window was closing on the buyer's market.

IN CLOSING: There are many ways to slice and dice the data for any neighborhood, and you'll find all sorts of different numbers (average sale price, median sales price, average price per square foot, etc) for any neighborhood if you do some research. My information doesn't contradict any of these stats, but is more based on my own experience of being very active in North Brooklyn residential sales. I think very specific research based on exactly what you are buying or selling is far more meaningful, and is part of what I can do for you if we're actively working together.

Buyers - this is a call to action because I want you to be one of those people who can say a year or two from now that you were one of the lucky ones who bought in a low market.

Sellers - clearly things are looking better and better for you, especially if you're in one of the prime areas. Call/write me if you think it might be time.

Enjoy the rest of this beautiful winter and feel free to contact me if you need any assistance.

All the best,
Mike 

Photo by Evan Sung for NYTimes