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