Thursday, December 14, 2006

Interesting Brooklyn Factoid: Condo Glut?

Open House

We're a little late coming to this party, but we love statistics and a couple jumped out at us when we read the NY Times story on the impact of females on the real estate market. We have long wondered what would happen to the Brooklyn market when all of the condos under construction come online. Our own theory is that there are parts of Brooklyn--say, Williamsburg--that are going to have a serious short-term problem absorbing all of the new units and that there is going to be a lot of downward pressure on prices. To put it crudely, people that bought in at the top of the market are going to take a bath. Or, at the very least, have to hold on to their property for years to break even. In any case, here is the info that provoked that outburst:
Brooklyn has 5,888 condominiums under construction and another 11,634 units planned, according to data gathered by Halstead Property...Apartments are taking far longer to sell. Apartments in Dumbo, Williamsburg and Brooklyn Heights sat on the market for an average of 111 days last quarter, compared with 62 days in the corresponding period in 2005.
None of this factors in the units coming on the market in Long Island City, which might be said to be targeting a similar market as Williamsburg developers. On the other hand, it should all be okay sometime between 2010 and 2030.

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