Bed Stuy brownstones selling at 30% over asking

not sure it is just me, i think brooklyn market has been slowed after entering june. my sample pool is small though, just streeteasy and corcoran.com.

As someone who has been tracking the Brooklyn market very closely for over a year, my impression is that things are still selling very fast, over ask, with multiple bids (not always cash though - noncontingent offers work nearly as well).

However, I have noticed that there 1) even less properties seem to be coming on the market; 2) prices seem to be at a higher baseline level than before. For example, an apartment that might have listed for 920,000 and sold for 1,000,000 (real example from the past three months) might today list for 940,000 or 950,000. I don't think it's a bubble in most of Brooklyn as it seems to be leveling off. As for these sales that are 30% over asking price -- meaning 1.7m on a 1.3m apartment in the above example-- put it in the perspective of a Manhattanite. A brownstone for 1.7m in Manhattan? How about a nice 2Br. Therefore, whether they are paying 1.7 or 1.5 or 1.3, it is a small difference for the huge value that they're getting. That's why the townhouse market in Brooklyn in out of control -- there is huge value compared to Manhattan.

Just my thoughts.

Bed-Stuy is a big nabe. This house is in a particularly safe part of Bed-Stuy, one block form the A express train (3 stops from Manhattan), it is a totally georgeous, architecturally outstanding, quiet one block street, 3 blocks form a great organic market, one block to a couple of places that serve great cappuccinos & food and also one block from Wallgreens, 2 blocks form a couple of cool bars, and 2 blocks form Cinton Hill.

there are lots of projects in the area

I'm fascinated by people who have $1.7 million to spend and would prefer to live in Bed Stuy than move to the actual burbs. Hope these folks don't try to sell during the next down-cycle, they'll get clobbered.

NYC10007,

Outrageous Fed policy has convinced many that there will NEVER be a down-cycle again.

"Outrageous Fed policy "

Not outrageous to underwater homeowners and the unemployed.

Oh lawdy. My hairdresser was renting a place in Bed-Stuy and she moved to Carroll Gardens because she felt like a target every time she got off the subway.

It's still an edgy neighborhood. $1.7mm to live in a place where you have to look over your shoulder all the time?

There are no projects in that area, this is 2 blocks to Clinton Hill, and one block to Fulton. As I said, living in Bed-Stuy can be a totally different experience in one area or other. I know the area very well.

"It's still an edgy neighborhood. $1.7mm to live in a place where you have to look over your shoulder all the time?"

What are the overall serious crime stats for Bed-Stuy versus Carroll Gardens? Not weekly, but over a long period of time? We have been down this road endlessly in Manhattan, and Washington Heights and some zips in Harlem are far safer than more expensive parts of Manhattan, so I am curious as to what the stats say in BK. I don't know, but I'd suspect there might be some plain old racism involved on the part of your friend (even if she herself is not white.)

Like for example these New Yorkers caught on tape for ABC news blatently assuming a black teenager was a criminal but a white teenager was not

http://www.upworthy.com/know-anyone-that-thinks-racial-profiling-is-exaggerated-watch-this-and-tell-me-when-your-jaw-drops-2

But I could be wrong!

Jason, always a victim.
When will you grow up an realize that people think you are an idiot because of your low intellect, not because of your race.

So...assuming CG is 76 and B_S is both 79 and 81...are they that different? B-S seems worse, but what is the population of each precint (i.e. crime per 1,000 people?) Don't know.

http://www.nyc.gov/html/nypd/downloads/pdf/crime_statistics/cs076pct.pdf

http://www.nyc.gov/html/nypd/downloads/pdf/crime_statistics/cs079pct.pdf

http://www.nyc.gov/html/nypd/downloads/pdf/crime_statistics/cs081pct.pdf

Unfortunately, there's still quite a few who have no qualms spouting racist rhetoric about Bed-Stuy. See this lovely thread:
http://streeteasy.com/nyc/talk/discussion/26374-bed-stuy

>Unfortunately, there's still quite a few who have no qualms spouting racist rhetoric about Bed-Stuy

This is your big concern? Of all problems in the world, you are here to protect Bed-Stuy where you don't even live?

Your big concern is my damages award affecting rents of people you don't know in a community where you don't live. Hypocrisy is alive and well.

> Hypocrisy is alive and well.

Sounds like you have a good basis of comparison.

Lame. Childish.

And avoiding the issue.

The issue AR, is that you are an abuser of the system, an abuser of the taxpayer, an abuser of the people that the State of NY intends to benefit. I'm a taxpayer and a voter, so yes, this impacts me and the rest of the people of NY.

The issue, hb, is that you don't know what the fuck you are talking about. And you've shown it time and time again about this issue.

The issue is that money is going into your pocket that you don't deserve under any normal ethical person's view of the world. But you feel entitled to it. And it impacts others.

You can still do the right thing.

What affected you, dumbass, is the incredibly overpriced purchase of the complex. But you're too simple to realize that a corporate entity caused the disaster that is. Really. Grow up. Overcome your simplistic thought processes.

So this is just some anti-capitalist anti-corporate Occupy Wall Street tirade you are on? Will you be donating your windfall to them? Because you didn't seem to take up any of my other suggestions about organizations that serve the needy in NYC.

The "corporate entity" that bought the complex lost all their money already. The money you are taking is not from them. It's from debt holders, including the government, and as part of their agreement to pay you your big check, they got the right to raise more rents.

"Not outrageous to underwater homeowners and the unemployed."

Underwater because they overpaid for hyped real estate and unemployed because our economy is structurally flawed partly thanks to its "finacialization" since the mid-1990s.

Zero rates are a continuation of the economic distortion that helped create the bubble in the first place. The Fed's policy isn't creating jobs and is just re-inflating the real estate bubble in many parts of the country. There is nothing structurally sound about it. Let's not even talk about how it has allowed our government to borrow an obscene amount of money that - at normal rates (re: 5%) - would cost well over a TRILLION dollars to simply pay the interest.

Yeah, I stand behind calling it "outrageous".

"This is your big concern? Of all problems in the world, you are here to protect Bed-Stuy where you don't even live?"

Huge concern. I've devoted all of one post about it this year alone. And clearly spend no time on any of the world's other problems (which should be one's day job, natch). Good sleuthing, greenie. And get back to them good deeds, stat.

poor bjw

In reality, if the area is that bad, people would not be spending $1.7M on a property that needs full gut. I believe the people that bash the area may be the same ones that feel they missed out and can't afford it anymore. By the way, another property (12 Arlington) across the street from 7 Arlington just went into contract just below ask of $3.5M. The house is smaller than 12 Arlington, is sold "as is" and is not delivered fully vacant.

Sorry $1.35M and not $3.5M.

there are many people, just like '05-08, who are jumping into the neighborhood that they know nothing about. after living there for a short time, they sell to the next idiot and run. i'm talking about 90% of bed sty. this house seems to be the outlier in the 10% area.

The problem is that there is no one selling in this neighborhood. Assuming you were right, you would see some inventory but there is limited inventory available in this area and when a house comes on the market, there is normally a line up of people at the open house and the property ends up with multiple offers.

The open houses that I've been to in this area are usually properties owned by an older couple that are willing to cash in and move but haven't been to any properties being sold by a younger family that bought in recent years.

Weak retort greenie - you're slipping!

"there are many people, just like '05-08, who are jumping into the neighborhood that they know nothing about. after living there for a short time, they sell to the next idiot and run. i'm talking about 90% of bed sty. this house seems to be the outlier in the 10% area."

What are you saying? That you should run from 90% of Bed Stuy? That 90% of buyers in Bed Stuy are clueless? Or is this another of your random, off-the-cuff remarks that shouldn't be taken too seriously?

no, most of the people who bought during that time are so underwater that they can't sell even with the runup in prices. the ones that could, dumped it before the collapse.

the price drops throghout bed sty were significantly higher than in fort greene and clinton hill. they are now coming back to frothy. the idiots who bought for 1.5M and put another 1/2 mil into their shit hole location are still upside down and will be there for a while.

ab, I really don't know where you are getting your figures from but obviously you are mixing up Bed Stuy with some other location. Properties in Bed Stuy never sold in the $1.5M range until recently. The only house that sold close to $1.5M was the one purchased in 2008 by Barbara Corcoran at 408 Stuyvesant Avenue; the founder of Corcoran RE buying in Bed Stuy is probably another sign that the area is a good investment for buyers. Aside from this property, everything else seemed to have sold below a million until mid last year when properties started going into multiple bids and prices started moving.

http://www.brownstoner.com/blog/2009/06/215-gates-sells/
http://www.bedstuyblog.com/2007/11/bed-stuy-real-estate-picks-101607/
http://www.bedstuyblog.com/2008/02/bed-stuy-real-estate-picks-022208/

then prices dropped to 600s and all of those paying 900+ were left with a.... upside down mortgage. they are still upside down if they sell for under $2M as they carried the crap for 5 yrs and were paying double of what a similar rental in the neighb would cost.

"no, most of the people who bought during that time are so underwater that they can't sell even with the runup in prices. the ones that could, dumped it before the collapse."

Ugh. More exaggeration/total conjecture. Some data to back this up would be nice.

"the idiots who bought for 1.5M and put another 1/2 mil into their shit hole location are still upside down and will be there for a while."

How many bought a Bed-Stuy brownstone in 05-08 for $1.5M? Especially one that needed $500K in reno? Probably far fewer than you're supposing here.

And of your 3 links, only the first one has an actual closing price (the rest are asks, and unfortunately are old and have no address specifics, so pretty useless - even then, only 2 top the $1M mark).

I'm not saying Bed Stuy was a great great investment - but this bashing is well off-base.

>Weak retort greenie - you're slipping!

Didn't know you usually held me to such a high standard.
But ok, this thread, you beat me. Congratulations. Finally.

so, what areas of brooklyn are cooling down the most?

cooling down? what cooling down?

In a US housing market recovery I think you are going to see most areas' prices trend upwards. Bed-stuy is clearing gentrifying fast just seeing how prices have gone up over the last 9 months.

Have any of you that are bashing Bed Stuy been there recently? I take the A train from Nostrand everyday and it's filled with loads of professionals going to and from work. There are a ton of young people living in and moving to Bed Stuy and Crown Heights North. I feel that even in the past year the amount of "new people" has doubled. A new restaurant or bar opens every month on Franklin and it's now moving to Nostrand. I don't understand why some of you have so much vitriol when talking about a neighborhood that you spend zero time in.

"cantdecide"

BK homeprices have been up like 15% YOY all year this year, while Manhattan prices have been up by low single digits. At least SOME of that gain is clearly in gentrifying areas - as evidenced in my mind by the fact that the fastest rise in prices on the Island are in upper Manhattan this year. It all makes sense, so me.

Now it seems that $1.7M for Bed Stuy is the norm.

http://www.brownstoner.com/blog/2013/06/stuyvesant-heights-beauty-just-closed-for-1-7m/?stream=true