The Greenpoint Market - February 2013

This is a very healthy market with a pretty diverse mix of product unless you're looking for full-service. That's coming, but probably not for another 5 years. There are a lot of people who only want to buy in Greenpoint, so like a less extreme version of northside Williamsburg, everything is selling quickly with multiple offers. A few weeks ago 48 Box St at the far north end near the Pulaski Bridge sold out everything in one night with multiple offers over ask.

The last six months have held pretty steady, on average just under $700/sf (excluding ground floor duplexes). Since twice as many one-beds traded during this time as two-beds, I saw a pretty big difference in ppsf. One-beds averaged $664/sf, while two-beds were closer to $726/sf. Elevators, outdoor space and views near a train will get you up in the low 800’s. I don’t know the results of all the recent bidding wars in this area, but this average is definitely trending up.  

The East Williamsburg Market - February 2013

Generally speaking, this is considered any part of Williamsburg east of the BQE. This is the land of the newly built untraditional layout (so-called “lofts”). You’ll find a lot of 18’ ceilings and windows, mezzanines/duplexes, home offices, convertible-2’s and 3’s. Those of us who work the area know that north and south of Grand St are pretty different. They attract a different buyer and are in different phases of their development.

Looking at condo closings in the past 6 months or so, you’ll find that there aren’t that many closings in this area. We’ve had a real shortage over there in 2012. With smaller samples averages don’t mean as much, but what I’m seeing is about $650/sf north of Grand (nearly $720/sf for current listings), and just short of $600/sf for the area to the south of Grand (and nearly $620/sf for current listings). Elevators and views are not so common on this side – if you've got that and it’s near the L train you’ll pull northside buyers and it will go for much higher.

The Williamsburg - Southside Market February 2013

Southside is the least homogenous of the areas I’m describing today. The inventory is more eclectic and limited. About half of the closings in the last 6 months belong to two large and very desirable loft buildings (The Gretsch and Smith-Grey) and one large but far out new-development (Schaeffer Landing).

Looking at closings in the last three or six months, I’m seeing both just over $720/sf. HOWEVER, if you clip the ground floor duplexes you see over $765/sf in the last six and over $780/sf in the last three. Looking at what’s gone on the market or in contract in the last 3 months I’m seeing listing prices just under $800/sf, but I know there were many bidding wars that went far over ask, so this will revise upward once closings are confirmed. While I feel good about this snapshot of the area, the high variation between buildings will cause internal comparisons to carry much more weight.

The Williamsburg Northside Market - February 2013

This is where the market has really gone nuts. Because developers switched tracks to building rentals instead of condos, the inventory can no longer keep up with demand. Every new listing within a 10 min walk of the Bedford stop has several qualified and motivated buyers vying for it. Many are going for all-cash and far over ask. If you’re a typical buyer with good financials and 20% to put down, you and I need to strategize before you dive into this pool.

Looking at the last six months, the average price/sf in closed sales is over $860/sf. Look at the last 3 months it ticks up to over $885/sf. HOWEVER, if you knock out ground floor duplexes and a handful that signed contracts a year ago and just took a long time to close, you come up with a pretty even average of $900/sf for either three or six months. If you then look at what’s come to market over the last 3 months but hasn’t closed yet, we’re averaging over $950/sf on the asking price.

Regardless of size, I think we just saw the end of the $500K one-bed/ $700K two-bed market in the Northside. One’s these days are typically over $600K and twos over $800K. There isn’t much coming up in terms of condo developments around here, so re-sales will continue to reach for a new equilibrium. When…nobody knows.

The Williamsburg Waterfront Market - Feb 2013

While technically part of the Northside, I like to break it out because it is a force unto itself. Consisting of only two developments (The Edge and Northside Piers), they outpaced any other neighborhood in North Brooklyn however you measure it. Over $60 million of property closed there over the last 6 months. These apartments tend to get the highest price/sf in the area, mostly because of their protected views, but also because they’re very high-end products that can approach resort-style living.

There hasn’t been as huge a variation over time that we’re seeing in the other areas. Looking at closed sales in the last 6 months, 3 months, and recent contract asking prices, the averages continue to hover in the $1000 - $1030/sf range.

There was a time when these two were negotiating heavily, but as of about a year ago that came to an end. They had a target price/sf for every unit and steadily sold them out with a few price increases here and there. The rules are pretty simple: higher floors more expensive than lower, protected views more expensive than obstructed. Studios and one-beds have a higher price/sf the smaller they get in size, but that correlation doesn’t hold with two and three-beds. With them it’s more about some layouts being more desirable than others.

These buildings are sold out of the first offering and have begun to have re-sales. I would expect much more fluctuation in the prices here for now on.