Can there be any good news hinting at a Brooklyn Real Estate Recovery?

I decided it was time to find evidence of positive market developments that would lend to overall market stability in supply/demand factors for new housing starts.

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Habitat for Humanity Completes 41 Unit Condominium Development

Habitat for Humanity just completed construction on a 53,000 sq ft development that will provide 41 affordable condominium units to hard working New Yorkers in Brooklyn.  Ben Chaplin of the Daily News reports that unit prices will average between $100k to $200k and that more than 8,000 home buyers registered to purchase the available 1, 2 & 3 bedroom units.  Families will begin moving in next month.

Affordable home ownership opportunities for working families created by a great organization with the use of volunteers says something about “Real Community Development” in the hands of those who have a vested stake where they live.

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Goldman Sachs Brooklyn Condo Bet Goes South

Amanda Fung at Crains New York reports the disappointing sales at Forte Condo, the 108 unit / 30 story luxury condominium development by Manhattan based real estate developer, The Clarett Group, in the Brooklyn Academy of Music cultural district.  Investors, including majority stakeholder Goldman Sachs, are in negotiations with EuroHypo Bank to take over the property.  There have only been 37 units sold in 2 years.

With so much inventory still available and more to come after The Toren, The Oro and other developments come to market in Downtown Brooklyn, we’ll begin to see lower prices, seller financing, rent-to-own and other incentives offered to purchasers.  Luxury condominiums at 15% to 35% discount from original list prices.

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New Charter School Construction Occuring in Central Brooklyn

Alison Gregor at The New York Times reports that new Charter School construction is on the rise in the City’s poorest neighborhoods, with the bulk of new construction occurring in central Brooklyn and the south Bronx.   Demand for this education option currently exceeds supply, as parents of grade school children in poor neighborhoods are desperate for the choice.

Any time a community can raise the quality in grade school education it translates into increased demand for existing homes in a neighborhood.  Young families raising grade school children are unanimous in their desire to educate their children in the neighborhood they live in.  Too many families are forced to commute out of their neighborhoods in search of a better public school education for their children.

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Trulia.com’s Brooklyn Real Estate Trends

Brooklyn continues to see property value declines across the borough, where every 1 home sold, 3 still remain on the market.  Homeowners have seen an average $75,000 loss in equity year over year.

While on the surface this doesn’t appear to be a positive trend, it should be interpreted that the inflated property values caused by unfriendly consumer mortgage products (ARM’s, Interest Only, 80/20′s) are now retreating as a result of the credit crisis.

As available home mortgage financing remains tight, properties will continue to see further devaluations and eventually become affordable to purchase by young families.  The funny money in mortgages from 1996 to 2006 has all disappeared…only to be replaced by FHA financing – the NEW Sub Prime Mortgage Financing.

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Brooklyn Academy of Music Cultural District, Brooklyn Charter Schools, Brownsville, Forte Condo, Habitat for Humanity, The Clarrett Group, The Oro Condos, The Toren Condos, Trulia.com