Just wanted to share some little known facts about New York real estate:
- Prices of homes (this includes all types of residences) have significantly dropped in the last 6 months. This means, the value of homes if they were on the market right now are also affected.
- The booming market is now a thing of the past. Analysts are predicting that this trend will continue towards the end of 2008.
- During the real estate boom, NY was one of the places where home prices badly needed price correction. Home prices soared like crazy, that then, a $500,000 home was a handy man special.
- My sister bought a house in Long Island in 1999 for $210,000. It was still the buyers market then. Between 2001 to 2005 the same house was already being valued at $400,000. This value is indicated by the annual document they receive every year, which also indicates the cost of real estate insurance for the incoming year. Currently, in the area where she’s at, homes on the market priced in the $500,ooo mark have been sitting there unsold. In fact, her next door neighbor has their home for sale at $480,000 for already 7 months. The price started at $525,000 and they have slashed down the price, but still there are no takers. Heard the couple’s getting divorced.
- There is no point comparing prices of homes in the boroughs(meaning homes in Manhattan, Brooklyn, Queens and Staten Island) and prices of homes in the New York suburbs(Long Island, Upstate and Suffolk) as they are totally PRICED DIFFERENTLY and I can tell you why:
- Homes in the boroughs are more expensive because of their proximity to the city(Manhattan). Case in point: a 400 sq.ft. flat if it’s located in the city can be had at $300,000. The same 400 sq. ft. if it’s located in Brooklyn, Queens or Staten Island may be priced a little lower say: $250,000.
- Check out homes in the suburbs(Long Island) and if you have $300,000 you can buy a house that’s probably a decent size(1,400 sq. ft.), not the original 400 sq. ft. in Manhattan (which is like a square box) in a decent neighborhood.
- Take your $300,000 further(Upstate or Suffolk) and this will buy you a very nice size home(maybe 2,500 sq.ft.) in a very nice neighborhood.
- The thing is, you can buy a bigger property in the suburbs as compared to the “box” you can have in the boroughs but you will pay higher property taxes. I’m not saying this is generally true for all. A family friend with a 2,800 sq.ft. home sitting on a big property located in the Bellmore area in Long Island pays $10,000 in annual property taxes.
- In the neighborhood where we live, a 1,000 sq. ft. apartment are currently valued at $360,000. With the same amount of money, you can buy a decent sized single family home in Long Island and a bigger home going farther either Upstate or Suffolk. Take the same amount of money to buy a property in Manhattan and you’ll probably get a 450 to 500 sq. ft. apartment.
- A loft or an apartment with a decent size say, 1,000 sq. ft. in Manhattan, certainly costs a fortune. It may be priced a minimum of $800,000 especially if it’s located in Chelsea or Uptown (East Side) area. If it’s in a doorman building, the price is even gonna be higher.
Well, what am I getting into? I don’t know, I was just thinking about it. The whole mess with the housing market in the US is just bothersome and I care about it a lot. Investments are plunging, and I wish I had the magic wand to just get everything back to normal.
This is it for today…in My World.