An article published late last week by The Real Deal cites that “the median closed sales price in Brooklyn has already fallen back to 2005 levels, dropping 19 percent over the past two years, according to StreetEasy. Rental listing prices dropped 12 percent over the past year”. Brooklyn is such a large area, so any generalizations on price levels may not apply to specific neighborhoods, especially the small area of Dumbo.
The Real Deal looked at Brooklyn as six sections:
- Downtown Brooklyn/Clinton Hill/Fort Greene: “experienced the most rapid fall in median sales price, 29 percent over the past two years.”
- Dumbo/Brooklyn Heights/BoCoCa: “The largely landmarked district comprised of Dumbo, Brooklyn Heights, Boerum Hill, Carroll Gardens and Cobble Hill had the smallest median sales price decline over the past two years, at 7.5 percent. The area also saw one of the smallest declines in rental listing prices over the past year — 4.7 percent.”
- Williamsburg/Greenpoint/Bushwick: “No area in the city epitomizes the boom and bust more than the neighborhoods of Williamsburg, Greenpoint and, to a lesser extent, Bushwick”. “listing rents here have already fallen the furthest, 21.5 percent over the past year”. “The median closed sale price fell 18.5 percent over the past two years, and the area has the most inventory of any market. In addition, the number of transactions declined the most, 58.2 percent, over the past year.”
- Bed-Stuy/Crown Heights/Prospect Heights: “Of all six areas The Real Deal examined, median sales price fell the least over the past year in the neighborhoods of Bed-Stuy, Crown Heights and Prospect Heights, at a combined 5.7 percent.” “Listing prices saw the most aggressive decline over the past year, at 20.9 percent, and the median listed rent fell by 11.7 percent.”
- Red Hook/Sunset Park/Windsor Terrace/Gowanus: “has seen the second largest overall decline in median closed sales prices over the past year, at 24 percent. Conversely, its median rental listing prices have declined the least during the same time period, by only $50, to $1,900.”
- Park Slope: “over the past year the number of transactions saw the second-highest drop at 48 percent. Median listing prices over the past two years fell 25 percent, and rental listing prices fell 7.4 percent.”
Looking at the data, The Real Deal combined Dumbo with Brooklyn Heights, Boerum Hill, Carroll Gardens, Cobble Hill, and Vinegar Hill. Dumbo is such a small neighborhood with very little inventory and higher demand that rental and sales prices have not fluctuate much, according to sales records and emails from area realtors who wished to remain anonymous. If the $25million condo at One Main sells, the average price of a Dumbo condo will rise, said one broker.
In the article, Jonathan Miller, president of the appraisal firm Miller Samuel, says that “the area with the highest amount of new development concentration there, by definition, has the most exposure to the troubles with new development lending…In terms of the hundreds of troubled residential projects looming in the shadows, the more units you push into the market, the more impact you can have on values.” While Dumbo had new development (i.e. 85 Adams, 84 Front, 206 Front St, 100 Jay, for example), many of them were sold out (or converted to rentals such as 133 Water and 99 Gold) by the time the credit crisis hit in 2008.
So how is Dumbo faring, according to The Real Deal?:
“While the area saw relatively few cranes during the building boom, retail districts flourished, like Smith Street’s “restaurant row” and Dumbo’s arty mash-up of bars, bookstores, furniture stores and more recently, two Brooklyn Flea outposts.
Several area brokers pointed out that, with the simultaneous mall-ification of Manhattan, these quaint neighborhoods have become preferred alternatives for many buyers: “what the West Village was like 20 years ago,” said Janet Gigi Zimmerman of Brownstone Real Estate.”
“With no comparable properties, experts say its sale will affect little in the Brooklyn market.
“It’s hard to put a price on a property that’s so unique and iconic,” said Kim of StreetEasy. “However, looking at comparable properties in Manhattan like the listings at Palazzo Chupi and the Police Building, it will be very difficult to find a buyer at its current pricing.”
When we spoke with realtors in Dumbo in June about Dumbo’s condo prices, they estimated a 5% drop in pricing. The data by The Real Deal is not too far off with the district having the “smallest median sales price decline over the past two years, at 7.5 percent.”
Some of the upcoming new development in Dumbo and Vinegar Hill are:
100 Gold Street
181 York Street
109 Gold Street
192 Water Street
53 Bridge Street
37 Bridge Street
201 Front Street
Dock Street Dumbo
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The switch is on to high rent apartments. Just look at 25 Washington Street. Nice to give the folks and their business a few months notice too! Go Walentas!
The switch is on to high rent apartments. Just look at 25 Washington Street. Nice to give the folks and their business a few months notice too! Go Walentas!
Dumbo has not hit bottom. There is more to go. Perhaps the largest factor is that lenders have become (rightly) very cautious. Many believe that as One Main goes so goes Dumbo. If so, a cursory look at the sales at 1 Main over 2009 is sobering. Throughout 2009, there were as many as 20 units on sale; only three have sold, all significantly lower than asking. Additionally, the boards at One Main have so badly managed that building that they are once again in trouble, the latest word being that the capital reserve is so low that residents can't get refinancing and potential buyers with good credit are being turned down for mortgages. Most transactions at 1 Main are mostly cash. That doesn't bode well for 1 Main, Dumbo, or the $25mill Clock Tower. Also, the prospect of Dock Street rising has ostensibly killed large parts of the market, specifically for 70 Wash and Sweeney. Dumbo has always been about the view. For many, that view is now gone and their property values have been instantly diminished. In truth, anyone who has bought in Dumbo in the last four years for more than $900/sq. ft. has LOST money.
Dumbo has not hit bottom. There is more to go. Perhaps the largest factor is that lenders have become (rightly) very cautious. Many believe that as One Main goes so goes Dumbo. If so, a cursory look at the sales at 1 Main over 2009 is sobering. Throughout 2009, there were as many as 20 units on sale; only three have sold, all significantly lower than asking. Additionally, the boards at One Main have so badly managed that building that they are once again in trouble, the latest word being that the capital reserve is so low that residents can't get refinancing and potential buyers with good credit are being turned down for mortgages. Most transactions at 1 Main are mostly cash. That doesn't bode well for 1 Main, Dumbo, or the $25mill Clock Tower. Also, the prospect of Dock Street rising has ostensibly killed large parts of the market, specifically for 70 Wash and Sweeney. Dumbo has always been about the view. For many, that view is now gone and their property values have been instantly diminished. In truth, anyone who has bought in Dumbo in the last four years for more than $900/sq. ft. has LOST money.
I'm so tired of the one main haters. The building finances are fine, we just embarked on a major hallway update, we just completed updates of the elevators, and the building has never looked better.If you are having a hard time selling your non-one main apartment, don't blame us! Spreading false rumors is juvenile and transparent
I'm so tired of the one main haters. The building finances are fine, we just embarked on a major hallway update, we just completed updates of the elevators, and the building has never looked better.If you are having a hard time selling your non-one main apartment, don't blame us! Spreading false rumors is juvenile and transparent
I'm so tired of the one main haters. The building finances are fine, we just embarked on a major hallway update, we just completed updates of the elevators, and the building has never looked better.If you are having a hard time selling your non-one main apartment, don't blame us! Spreading false rumors is juvenile and transparent.
How does stating a fact about only 3 of 20 units for sale actually selling constitute spreading false rumors?
I do not know with accuracy (and I suspect neither do you) the exact status of each and every unit. What is false are your comments about the board, the financial health of the building and the ability to get mortgages.
Moron, I never said anything about your pwecious little building board and could care less. I know people at One Main who have had NO luck selling their apts. Does that have anything to do with anything other than a terrible economy? Shit if I know and I sure as hell don't care.
And i quote from you above “the boards at One Main have so badly managed that building that they are once again in trouble” so yes in fact you did mention the board. thanks for proving again who is the 'moron' here.
The market stinks everywhere, but misinformation and uniformed rants do not help.
Not too bright are ya?
I'm so tired of the one main haters. The building finances are fine, we just embarked on a major hallway update, we just completed updates of the elevators, and the building has never looked better.If you are having a hard time selling your non-one main apartment, don't blame us! Spreading false rumors is juvenile and transparent.
How does stating a fact about only 3 of 20 units for sale actually selling constitute spreading false rumors?
I do not know with accuracy (and I suspect neither do you) the exact status of each and every unit. What is false are your comments about the board, the financial health of the building and the ability to get mortgages.
Moron, I never said anything about your pwecious little building board and could care less. I know people at One Main who have had NO luck selling their apts. Does that have anything to do with anything other than a terrible economy? Shit if I know and I sure as hell don't care.
And i quote from you above “the boards at One Main have so badly managed that building that they are once again in trouble” so yes in fact you did mention the board. thanks for proving again who is the 'moron' here.
The market stinks everywhere, but misinformation and uniformed rants do not help.
Not too bright are ya?
dumbores apparently can't read.
The person who commented about the board was “Truman.”
All that “dumbony” said was that selling 3 of 20 units was fact.
Which it is.
So, uh, dumbores needs to start taking time to get his facts right, cuz he/she can't even read the blog correctly, calling everything he/she says into question.
If it weren't so pathetic, it'd be funny.
His comment was under the same thread. Give me a break. The point is the same. Would love to see stats on other buildings around here, from what I hear things are much worse all around.
So tired of random haters on this blog. Love the job Hide is doing but some of you guys really need another outlet! We all care about Dumbo and should be supportive of the neighborhood.
Hard to care for a neighborhood that is mostly owned by one family who cares about money and not the neighborhood. What is good for their bottom line is good for the neighborhood.
The word “haters” also sounds childish. Let's use some other term. A good place to use it is on the playground's boat.
dumbores apparently can't read.
The person who commented about the board was “Truman.”
All that “dumbony” said was that selling 3 of 20 units was fact.
Which it is.
So, uh, dumbores needs to start taking time to get his facts right, cuz he/she can't even read the blog correctly, calling everything he/she says into question.
If it weren't so pathetic, it'd be funny.
His comment was under the same thread. Give me a break. The point is the same. Would love to see stats on other buildings around here, from what I hear things are much worse all around.
So tired of random haters on this blog. Love the job Hide is doing but some of you guys really need another outlet! We all care about Dumbo and should be supportive of the neighborhood.
Hard to care for a neighborhood that is mostly owned by one family who cares about money and not the neighborhood. What is good for their bottom line is good for the neighborhood.
The word “haters” also sounds childish. Let's use some other term. A good place to use it is on the playground's boat.
Passing through the real estate exam is quite an accomplishment for a realtor what more if they can close a big deal.
Passing through the real estate exam is quite an accomplishment for a realtor what more if they can close a big deal.
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