Tuesday, September 2, 2008

There are now officially too many condos in NYC

In the wake of a building boom that has added thousands of condos to the New York market over the past five years, many projects are foundering as the local economy cools. Brokers report that developers in some areas of the city are struggling to sell units as consumers and lenders grow increasingly skittish. Hardest hit are developments now seen as inappropriate for their neighborhoods or those located in peripheral parts of the city that are still gentrifying.

Condo glut builds

"A lot of guys are scrambling out there," says Eric Anton, executive managing director at Eastern Consolidated, a real estate investment services firm. "A lot of them are going to lose their shirts if they don't think of something to do."

The problem is that easy solutions are few. Buyers for entire buildings are scarce—as are banks willing to finance them. Instead, many developers are targeting buyers of individual units by cutting prices or offering to pay closing costs.

A few others are taking more drastic action. Unable to sell their units, they are converting their projects to rentals—typically taking a major financial hit in the process. The owners of 99 Gold St. in Dumbo and 192 Spencer St. in Clinton Hill, Brooklyn have converted their projects, as has the owner of the Bridges NYC North on Third Avenue in Harlem.


If DUMBO and Harlem are considered "peripheral parts of the city" then LIC brokers must be wetting their pants for sure!

23 comments:

Anonymous said...

"Wetting their pants"?

H-m-m-m... they're crapping into their Gucci loafers!

We told ya so you cocky sales reps and real estate brokers....about 6 months ago (at least)!

That's why you fellas had to put on such a big show of bravado on this site...telling everyone that we were wrong in predicting a downfall in the condo market.

Yet you knew it all along yourselves that this shaky market was about to collapse.

But you wanted to
maintain a confidence level among potential buyers while playing your little confidence game with them to grab their money quickly before they got wise to the scheme.

Well, here it is....the domino theory in action.

Better cut your latte budget
and no trips to the Bahamas this year (or much longer).

Anonymous said...

Nowhere in the article is LIC mentioned, but you post it with a picture of LIC. Thanks for another baseless, unintelligent comment Crapper, as well as an example of your irresponsible rhetoric. In reality, LIC demand has remained strong even in this market downturn, showing that the area is ideally situated for the development happening there now.

Anonymous said...

Anon #2 just proved anon #1's entire post true! Ignore the loud and clear warning signs, gullible condo buyers, all is well!!!!

Anonymous said...

#2, LIC is the market that many have predicted would be the first to suffer. And it's where they've built the most condos in Queens, which is the focus of this blog.

Anonymous said...

Well the cocky sales rep or broker is one of us - they need to sell property they don't own to make a living. Some live here in Queens.

It's the developer going out on a limb building condos on speculation and creating a frenzy for land. These are the guys hijacking our neighborhoods to provide overpriced housing that will be snapped up - yeah right - the games are over, someone had to be left holding the bag when the music stopped.

Big losers are developments in construction, sales openning and existing owners of units bought in the last 2 years (falling values).

Now that this is occurring, you find that the developer next door who sunk a foundation and not doing much else is in financial straights. This the problem that you may face along with unsold condos being rented - a big concern as the quality of rental folks may not match the neigborhood's lifestyle - you go to bed at 10PM for work the next day - new neighbors see fit to fiesta and samba all night long.

Anonymous said...

The NY Times had an article a few weeks ago about how well the new condos in LIC are selling.
"many have predicted" that LIC would be the "first to suffer"? Thanks for making that one up.

LIC had a bunch of empty, unused ugly factory and warehouse buildings and empty space. Now it has new luxury condo buildings on waterfront property, with midtown views and 5 minute train rides to Manhattan. Hmm, you geniuses are right, that's a terrible place to build. I should take investment advise from you rockstars all the time . . .

Anonymous said...

"The NY Times had an article a few weeks ago about how well the new condos in LIC are selling."

Let me guess - in their extensive "real estate" section?

Anonymous said...

Myth: Nowhere in the article is LIC mentioned, but you post it with a picture of LIC. Thanks for another baseless, unintelligent comment Crapper, as well as an example of your irresponsible rhetoric.

Reality: ever read the Queens newspapers gushing in thier pants every time the word 'real estate' is mentioned?

How much money do you have tied up in real estate, buddy?

Myth: In reality, LIC demand has remained strong even in this market downturn, showing that the area is ideally situated for the development happening there now.

Reality: supported by characters like the Russian mafia and third world cash that that is avoiding stocks and t-bills like the plague. Debt service is a bottomless pit of immigrants looking for four walls and a roof.

Yea, thats making a community I want to live in. How about you?

Anonymous said...

Now it has new luxury condo buildings on waterfront property, with midtown views and 5 minute train rides to Manhattan. Hmm, you geniuses are right, that's a terrible place to build.

sure, I want to move into a community in the middle of nowhere with almost no selection of stores or services.

LIC development is still tiny compared to the rest of the neighborhood - go ahead -a walk around and see what I mean.

Anonymous said...

Now it has new luxury condo buildings on waterfront property, with midtown views and 5 minute train rides to Manhattan.

QUEENS PLAZA HERE I COME!!!

NITWIT!!

Mr Angry said...

Have they cleared up that chemical lagoon under the old Pepsi site in LIC yet? Who's paying who to keep that out of the newspapers?

Anonymous said...

So then I guess we can hold off on Hunters Point South, Willets Point and Atlantic Yards until we have occupancy of the units already built.

Anonymous said...

LIC is part of the trend described in the article.

Condos will be put up for rent is all I can say.
Remember kids, renting is more affordable than buying anywhere in NYC today. Don't belive any real estate clerks that try to tell you buying a residence is investing. It's not unless you rent it out to tenants.

Important message: The amount of the mortgage you can afford can never exceed 4 times your annual income. So if you have a six-figure income and a 15-20% downpayment go buy a condo in LIC instead of renting in Manhattan. In four years you'll have negative equity on it and might end up walking away.

The market is grossly overpriced, prices have a long long way down till they reach their pre-bubble levels.

The income of potential homebuyers has not increased, yet the prices have uncrontrollably skyrocketed.

Anonymous said...

Have they cleared up that chemical lagoon under the old Pepsi site in LIC yet? Who's paying who to keep that out of the newspapers?

-----------

Remember, its brown skin people for brown fields.

Call up Queens for Affordable Housing and ask for Josefa Castro 718-726-9760 and ask her why?

Anonymous said...

All this talk of a recession is depressing. Truth of the matter is that when a recession hits perhaps I'll be forced to cut down the number of trips that I take to my vaction home in Vail. You on the other hand will be wondering where your next mortgage payment will come from.

Anonymous said...

All this talk of a recession is depressing. Truth of the matter is that when a recession hits perhaps I'll be forced to cut down the number of trips that I take to my vaction home in Vail. You on the other hand will be wondering where your next mortgage payment will come from.

-----

wait to we increase taxes

hehehehe

then you can pay for my babies.

Anonymous said...

All this talk of a recession is depressing. Truth of the matter is that when a recession hits perhaps I'll be forced to cut down the number of trips that I take to my vaction home in Vail. You on the other hand will be wondering where your next mortgage payment will come from.
You wont be around here long with that ignorant attitude.Are you a broker by any chance? Or maybe just delusional.

Anonymous said...

How many people here can afford a $400,000 condo? I make $70,000 a year (before taxes) and I can't afford one!

Anonymous said...

$400K is peanuts. You can't even get a decent studio for that price in LIC.

Anonymous said...

Then go back to Vail and court some snow bunny
(or snow buddy...whichever)
on the slopes.

Or concoct some more of your BS in front of the ski lodge's big open fireplace.

And my mortgage happens to be paid in full. Maybe you're the one who's about to lose your casa!

Anonymous said...

To compliment that popular TV series
"Desperate Housewives", may I suggest something more pertinent and timely ?

"DESPERATE OVERPRICED WATERFRONT QUEENS CONDO HOLDERS" !!!

If you've prime Manhattan properties to hawk, you've got nothing to worry about!

If not, you're holding a bag of shit!

Anonymous said...

Then go back to Vail and court some snow bunny
(or snow buddy...whichever)
on the slopes.
------

Go ahead, waste your life.

The idle rich are in for a big surprise!

Anonymous said...

Take a look at Astoria if you want to see lots of new, empty buildings.