In case you are not familiar with Brooklyn New York, let me give you some of the facts‚Ä¶
- The estimated population of Brooklyn is approximately 2.6 million
- Also known as Kings County, Brooklyn is the 7th largest county in the U.S.
- Brooklyn covers approximately 71 square miles
- Brooklynites represent over 90 different ethnic groups, 140 nationalities, and speak over 130 different languages
Brooklyn truly is a melting pot and the market conditions and property values vary from neighborhood to neighborhood. On the high end of the Brooklyn market you have many areas that are still realizing appreciation in property values. These areas include Brooklyn Heights, Park Slope, Williamsburg and several other neighborhoods towards the northern tip of Brooklyn. There is always strong demand in these areas due to the easy commute to Manhattan (minutes via bus or subway). These areas offer much more bang for the buck when compared to prices in Manhattan.
On the flipside, there are other neighborhoods in Brooklyn that are hurting right now due to the mortgage crisis that has affected our entire country. Areas like Bushwick and East New York are experiencing foreclosures at record numbers while many homeowners are trying to negotiate short sales with their lender so as to salvage their credit ratings.
For the most part, many areas in Brooklyn have lost about 10% over the past two years. This gives today‚Äôs buyers a great opportunity to buy on the ‚Äúlow end‚ÄĚ so to speak. Although the market has been slow during those two years, there is and always will be strong demand for property in Brooklyn. This is due to several factors such as the ever growing population and the easy commute for anyone working in Manhattan.
The pace of the market has picked up due to the fact that many homeowners have come to the realization that values have dropped and are willing to accept offers more indicative of market value right now. This is why sales in most parts of Brooklyn are still brisk, especially if the asking price on the property is close to market value.
The common thread among most of the transactions we are doing right now is that both the buyer and the seller are MOTIVATED.
With regard to home sellers, you must remember that prices right now are higher than they have ever been with the exception of the past two years. Any homeowner who purchased their home more than two years ago will still see a profit when they sell. Plus as a seller you have to remember that if you are going to purchase another property, the next home you buy will cost you less than it would have several years ago, so what you lose on one end you gain on the other (unless you‚Äôre moving from Brooklyn to Manhattan).
There are also loads of opportunities for homebuyers. Prices are down and good deals are out there to be found. Mortgage rates are very low and contrary to popular belief, it is still easy to get a mortgage if the buyer has good credit and income. In addition, due to the fact that the supply of homes for sale is high, buyers have a lot to look at and choose from.
Brooklyn is a great place to live and to invest in real estate; it is truly a ‚ÄúLand of Opportunity‚ÄĚ. If you have any questions or comments regarding the Brooklyn, New York real estate market, please contact me at www.mitchellfeldman.com.
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