"home sales in Bklyn, Qns, fall off a cliff"

from Crains. Interesting to note the 8 to 9% drop between contract and closing prices. http://www.crainsnewyork.com/article/20090416/FREE/904159951 Residential sales in Brooklyn and Queens fell off dramatically during the first quarter—wracking up the biggest drop in five years. The number of sales in Brooklyn plummeted 57% in the first three months of the year compared to the levels of the same... [more]

from Crains. Interesting to note the 8 to 9% drop between contract and closing prices. http://www.crainsnewyork.com/article/20090416/FREE/904159951 Residential sales in Brooklyn and Queens fell off dramatically during the first quarter—wracking up the biggest drop in five years. The number of sales in Brooklyn plummeted 57% in the first three months of the year compared to the levels of the same period of 2008, while sales in Queens tumbled 52%, according to the latest quarterly survey conducted by Prudential Douglas Elliman and appraisal firm Miller Samuel Inc. “The numbers are down in a larger way because new developments are not selling anymore,” said Dottie Herman, president and chief executive of Prudential Douglas Elliman. In fact, both boroughs fared worse than Manhattan, which recorded a 48% drop in number of transactions in the first quarter. Despite the drastic declines in the number of sales, median prices held fairly well. In Brooklyn, median sales prices fell 9.9% to $474,600 from a year ago, and in Queens median sales fell 4.8% to $393,000. “I would have expected more of a decline in prices given the sales drops,” said Jonathan Miller, CEO of Miller Samuel. Prices began to slip in Brooklyn and Queens well before they did in Manhattan market, according to Mr. Miller. Queens was the first borough to record quarterly price declines, a trend that first showed up two years ago. Brooklyn followed with prices beginning to sag at the end of 2007. Sellers and buyers in the market are still not on the same page when it comes to prices, the survey said. The listing discount, the gap between the contract and the listing price, continued to balloon during the quarter. The listing discount in Queens was 8.4%, almost double from the first quarter 2008, while the listing discount in Brooklyn was 8.7%, up from 5.4% from the first quarter last year. In healthier market conditions listing discounts range between 2% to 3%, according to Mr. Miller. “The spread between the asking price and contract price will continue to expand until the economy improves,” he said. Inventory rose slightly in both boroughs in the first quarter. In Brooklyn, supply rose 1.9% to 6,154 from the previous quarter and in Queens inventory rose 6.1% to 10,421. On a bright note, there was an up tick in contract signings at the end of the quarter as buyers began to take advantage of increased affordability due to lower prices, lower interest rates as well as a modest improvement in conventional financing terms, Mr. Miller said. “We’re seeing first time buyers emerge, but market confidence has to come back,” said Dottie Herman. [less]