“FREE-FALLING: Borough housing prices plummet,” screamed the lead article in the July 10th edition of The Brooklyn Paper.
While it may not be quite as dramatic as the headline indicates in the “Brownstone Belt” (as the article refers to Brooklyn), it’s impossible to deny that the housing crisis is also affecting what has been thought to be one of the more solid housing markets in the U.S.
The article cites a study by HMS Associates, a New York-based appraisal firm, indicating that for the 2nd quarter of 2009 the average sale price for Brooklyn homes was $548,460, a decrease of 18%. The study also mentioned that total sales fell from 1,145 to 545 during the same period, a fall of 52%, and a number the article describes as a “barometer of whether a prevailing price trend will continue.”
While Brooklyn, and New York City in general, have not suffered foreclosure rates anywhere near the rates of markets such as California, Nevada and Florida, the drop in housing prices is still taking a toll in New York. In addition to an increase in foreclosures, reduced housing prices have reduced the spending ability of New York City consumers, which is in turn taking a toll on businesses. There is greater unemployment in New York. And of course there are many New Yorkers who need to sell their homes but are unable to sell for a sufficient amount to pay their debts. Or even worse, may be trapped in a situation where they are simply unable to sell their homes.
Options such as foreclosure mediation will hopefully be more available in the near future (if the New York State Legislature can get its act together). But in the meantime, the clear result from these economic problems will continue to be an increase in the need for New Yorkers to file for bankruptcy to deal with their debts.
If you live in Brooklyn, Manhattan, Queens, Long Island or anywhere else in the New York area and you’re considering filing for bankruptcy in New York, or you need help with the new bankruptcy laws, please feel to get in touch for a free initial consultation.
There are a lot of economic forces at work that is beyond the control of the average New Yorker, and if you need help, make sure to get the full benefit of the bankruptcy laws that were put in place to protect you and protect our society.
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