Real Estate Weekly
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Buyers in bidding wars over Brooklyn

By Konrad Putzier

With condo supply in Brownstone and North Brooklyn tighter than ever, more and more buyers are forced into bidding wars.

According to a new report by brokerage Ideal Properties Group, “virtually all properties in the analyzed North and Brownstone sections of Brooklyn sold either at, or slightly over their asking prices.”

Condos in Williamsburg sold for an average of 107 percent of their asking price in the fourth quarter of 2013, followed by 106 percent for Prospect Heights. Even in bottom-ranked Brooklyn Heights, average sales prices were an impressive 99 percent of asking prices.

The Warburg Realty 2013 Market Review of New York City residential real estate came to a similar conclusion: “competitive bidding became the norm, especially in the two bedroom market between $1 million and $1.5 million,” it stated.

“Price escalations in some parts of (Brooklyn) approached 20 percent during 2013, and EVERY good property sold within a couple of weeks, assuming once again that the price had some relationship to the market.”

Williamsburg waterfront

The growth in bidding wars is in part the result of both tightening supply and increasing demand. The number of sales in Brownstone and North Brooklyn declined by 64.4 percent year-over-year in the fourth quarter, according to the Ideal Properties Group study. At the same time, the average price per s/f for condos rose by 23 percent year-over -year, while the average time condo units spent on the market fell by 63 percent.

Bidding also reflects the fact that appraisals haven’t been able to keep up with the accelerating market, keeping asking prices below the actual value of units. “Some condos were aggressively overpriced (compared to the appraisal), and still sold for more than the asking price,” said Aleksandra Scepanovic, Managing Director of Ideal Properties Group.

Compared to condos, coops and townhomes had a much slower fourth quarter. Prices for townhomes grew 12 percent year-over-year, and coops a mere two percent. “When you come to Brooklyn, you don’t expect to live in a coop. You have in mind living in a fabulous brownstone or huge loft,” Scepanovic said.

She said she expects bidding wars to continue and possibly even accelerate in 2014 due to a “dormant pool of people who are looking to buy.”

“Brownstones are the classic inventory, but they don’t make them anymore. And everyone secretly desires to own one,” she said.

While Scepanovic expects Greenpoint and Williamsburg to slow down, she anticipates strong growth in Gowanus, Fort Greene and Prospect Heights, as well as in marginal neighborhoods such as Prospect Lefferts Gardens. займ на карту онлайн

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