In spite of all the gloom reported about the housing market, buyers who want to own their piece of Brownstone Brooklyn are purchasing homes at bargain prices through short sales.
Neighborhoods that saw home values rise sharply during the last housing boom are now seeing values drop even faster.
While a declining real estate market would signal fewer deals, residential sales in historic brownstone neighborhoods continue to show signs of resilience in contrast to the rest of New York City.
As foreclosures represent more than 25% of the properties for sale in Brooklyn, home buyers may never have another opportunity to purchase turn of the century row houses at 20% to 30% below market value.
Market Conditions in Brooklyn NYC
According to Trulia, market trends show downward pressure on home values due to the overwhelming number of properties for sale and homes involved in some phase of the foreclosure process (i.e. Lis Pendens, Default Judgment or Foreclosure Auction).
With the growing shadow inventory in Brooklyn now at 31% of all homes available, lenders are finding it in their best interest to approve sales where they collect far less than what’s owed by the homeowner.
Foreclosure Rules grow shadow inventory
According to the National Association of Realtors, New York State leads the country in number of days a home mortgage is delinquent by a borrower.
The judicial foreclosure process puts an average 644 days (nearly 2 years) between a law suit being filed by a lender and a judgment by a court in their favor, allowing them to sell the property in an auction.
In neighborhoods hit hardest by foreclosures, that period is 3 years or longer.
As of March 2001, NYS holds the fourth largest shadow inventory of homes in the U.S. at 107,500.
Neighborhoods lenders approve the most short sales
What makes the real estate in Brownstone Brooklyn more resilient than other parts of the borough and citywide?
- large-scale development projects at major transit hubs
- close proximity to Manhattan and New Jersey
- shorter commute time to work
- more white-collar, high paying employment opportunities
- improved retail, dining and entertainment options
- lower rates of violent crime incidents
- improved academic performance in education with broader options (charter, public or private)
And home buyers are sold on the change occurring where lenders are approving the most short sales;
- Bedford Stuyvesant
- Clinton Hill
- Cypress Hills
- East New York
- Crown Heights
Looking for guidance on how to purchase a home in foreclosure?
Our friends at My Brooklyn Report have published a foreclosure short sale E-Book. They allowed us to offer a chance for our customer to download it for FREE by reserving their copy on a sign up form below.
Unfortunately, the clock ran out and the offer is no longer available this year.
We’re giving some thought to making it available again next year FREE in January 2012.
Head over to Buying Brooklyn and add your email to the list for the launch and you’ll also be eligible to receive a copy of Buy Right the First Time – Seven Steps to Buying Your New Home in a Short Sale Successfully.