Thursday, October 9, 2008

Unsold luxury crap now being rented

As the housing market continues to cool, the brokers at Crifasi Real Estate are trying to convince the owner of the Luxury Metropolitan Condominium in Middle Village to throw in some incentives to try to attract more buyers.

It's a practice some realtors and developers are starting to use in this slowing market.

But even with those kinds of incentives, the brokers say a number of condo developers in the borough have seen either a significant drop in sales or a dramatic decline in prices.

As a result, some are renting the apartments instead of selling them at a loss.

Queens Developers Take Action To Shore Up Buyers


Anonymous said...

Somebody just told me that
Coldwell Banker is offering a DISCOUNT on purchases during
October for 10 days only.

"Lingere, hats and men's clothing
5th floor! Watch your step please
as you exit the elevator"!

Don't buy at department store sale prices just yet.

Wait for their fire sale!

H-m-m-m, looks like you sales agents had best move back to the boonies where you all hail from.

I guess that too big a bite you took from the "big apple" choked you!

VP said...

Prices have a long way down...
$250K is an appropriate median for areas like Middle Village. Yes, that's right: $250K! I didn't pull that number out of nowhere: that's the median home value for zip code 11379 in the 2000 Census.

But, but, the realtor scum would say: today the market's different, home prices only go up! How is it different than 2000? Has median income increased since 2000? Has it kept up with the increasing housing prices?

No! So home prices will keep falling until honest middle-class people who don't want liar loans and ARM mortages can afford them.

Important advice: Don't buy, but rent, all these condo to rental conversions mean you can rent at a fraction of what it costs to "own" with a mortgage.

Anonymous said...

Why would anyone even pay 6 figures for a place in nyc with NO services and the worst public transportation in the city, no amenities and zero panache.?

A nice price for a condo in middle village / ridgewood / glendale / maspeth is $60k.

There's gonna be a glut of "luxury" rentals in the area.

miles mullin said...

Good advice VP. You know your stuff.

VP said...

I used Middle Village as an example specifically because it's way overpriced even though it's not "vibrant" or "trendy" or overhyped like Astoria.

If an average 3 bath 2 bed house goes for $250K when the dust of the collapse settles, then a 2 Bed 1 Bath condo should be no more than $90-100K. After all aren't condos supposed to be an affordable alternative to houses for first-time buyers or lower income families? What's with all the "luxury condo" bullshit, how about affordable condos that don't look like the crap featured on this blog?

Other notably overpriced areas are the Fresh Meadows and Bayside.
Just check out An attached in Fresh Meadows goes for $488K.

Use any mortgage calculator and you'll see that $500K is a very high price to ask even where the median annual income is above $100K.

Anonymous said...

Please don't put Bayside in the same category as Fresh Meadows. Bayside is far nicer with much better schools.