Bubble Wrap

Former Coney Island developer now setting sights on Red Hook project

The New York Post follows up on developer Joe Sitt’s plans to bring big box retail to Red Hook and Bensonhurst. After selling most his Coney Island land to the city last year, he is apparently closer to moving forward with the developments. Sitt’s Bensonhurt plans, which are further along, will include a $100 million dollar shopping center anchored by BJ’s.

The developer denied published reports that he wants to build student housing at the site (Revere Sugar Factory site in Red Hook), nestled between an IKEA superstore and a Fairway supermarket. Instead, he told The Post he wants to bring big big retail stores to complement the nearby Ikea.

New Law Allows NJ Agents to Offer Buyers Rebates on Commissions

The Record discusses a new law signed by Gov. Corzine just before leaving office allowing agents to offer buyers rebates on their commissions. This may open the door for real estate companies who have offered rebates elsewhere in the country, particularly online brokerages. The law was opposed by the New Jersey Association of Realtors with the idea that buyers should focus on service given by a real estate agent, not on discounts or givebacks.

ZipRealty typically offers a 20 percent rebate of the buyer’s agent’s commission, Tyler said. For example, in the case of a $300,000 house with a 6 percent commission, the buyer’s agent would get 3 percent, or $9,000, and rebate $1,800 to the buyer.

Sales surge in fourth quarter, but rise may be temporary

The Real Deal summarizes the recent East End market report from Prudential Douglas Elliman claiming a 55% increase in sales from a year ago, and a 22% rise from last quarter, with median prices up, but average price down.

Both Miller and Desiderio cautioned that the current spike in activity is deceptive because East End sales have been so anemic for the past several years. “The credit crunch nearly froze most housing markets in the New York City area,” Miller said, noting that there were only 201 sales in the first quarter of 2009, the smallest amount his firm has ever tracked. “You’re coming from a very low spot.”

Brooklyn building parties like it’s ’07

Warehouse 11 recently had a big grand opening after being off the market for several months and lowering prices drastically. The event resulted in 34 accepted offers and hundreds of upcoming appoints as reported by the New York Post

This kind of open-house frenzy — which NYP Home hadn’t seen in a while — shouldn’t be taken as a sign that the real estate market (or the Williamsburg market, specifically) has recovered and everything will be rainbows and lollipops from now on. It’s more a testament to the power of cutting prices to the bone.

Optimism in the New Year for NJ Real Estate

The NYTimes reports on new confidence and optimism in the New Jersey real estate market as a result of market movement in the second half of 2009. A report from the Federal Housing Finance Agency called the state one of a half dozen “breakout states” where prices creeped up in the later stages of the year. However, Jeffrey Otteau of the Otteau Valuation group, warns of obsession over short term price changes.

“If you bought in the last five years and need to sell your house today,” Mr. Otteau said, “then the short-term cycle is relevant. But only about 1 out of 10 homeowners are in that situation. For the rest of us, it doesn’t really matter what home prices are doing right now.”

Sag Harbor Bayfront 'Cottage' Sells for Record $14 Million

Curbed Hamptons reports on the record breaking sale in Sag Harbor, kicking off 2010 in style for East End real estate.

Brace: this here Sag Harbor “Nantucket-style” waterfront abode has just gone to contract for $13.75 million, below the asking of $15.995m but nonetheless still easily a record for a residence in Sag Harbor town. The 8,000 square foot house enjoys 200 feet of sandy bayfront and 50-foot swimming pool; inside, yes, that’s a private wine room (with cigar smoke filtration system) and an in-house movie theater.

State o' the Market Reports: The Manhattan Bleeding Slows!

Curbed wraps up the 4th quarter market reports released by the big brokerages reporting on prices, volume of sales, price per square foot and new developments.

But the pace of the market’s free fall in the wake of Wall Street’s apocalypse has slowed, according to the brokerages, when comparing those numbers to the third quarter of ‘09. In fact, Halstead/BHS even showed increases in average and median sales prices in Q4 when compared to the prior quarter. We certainly didn’t see that one coming. Other encouraging signs for our frienemies in suits: All of the brokerages reported increases in sales over both last year and last quarter. In essence, when compared to recent market history, the fourth quarter saw more sales for less money.

Home Prices Flat in North Jersey-- S&P Report

The Record discusses an S&P/ Case-Shiller Home-Price Indices report citing a flattening of home prices in the New York Metropolitan area which includes North Jersey for October, with prices down 7.7% since last October. While average price discounts varied by location, many of the new purchases are being attributed to the extension of the $8,000 Federal tax credit for first-time buyers through next spring.

To economist Patrick O’Keefe with J.H. Cohn in Roseland, Case-Shiller’s October numbers for North Jersey show that the market reached its bottom in April and housing prices are up 1.4 percent since then, he said.

“I think it’s apparent in the data that the April point was the bottom,” said O’Keefe. “But the improvement since then – here in North Jersey area – has not been an unbroken upward line.”

North Fork Market Indicators Show An Incline At End Of This Year

North Fork Vue reports on several indicators for North Fork real estate which paint a better picture for the market; sales volume and prices are slowly increasing in conjunction with lower days on market.

And what do all these numbers mean, in a nut shell real estate sales the North Fork has begun to inch their way back to a new normal. In relation to overall East End sales, the North Fork accounts for 26.1 percent of all sales and 13.4 percent of overall sales volume. The median sales price climbed some 6.1 percent from $450,000 in the second to $477,00 in the third. Similarly, the average sales price was $685,467, some 9.3 percent higher than the $627.204 of the prior quarter. Acording to analysts, “the surge in the number of sales helped the price indicators see increases over the summer.”

No $1.5B gift for StuyTown

The Post reports on Stuy Town’s failed attempt for bailout bonds from the Federal Reserve Bank of New York. With little left in their reserve fund along with court orders to roll back rents for tenants, default is expected in January.

As of last month, the owners had just $6.75 million left in reserves for StuyTown, according to credit rating agency RealPoint. That isn’t enough even to cover December’s costs, which include more than 6 percent interest on a $3 billion loan.

A person close to the StuyTown partnership said, “We fully expect the borrowers will make the December payments,” and that a default will more likely come next month.