PropertyShark.com has posted a snapshot of the results of a survey conducted by The Wall Street Journal. The survey compiles extreme low-end properties in the five New York boroughs. The cheapest New York property in listing is at $45,000.
The said property, found in Bronx’s Fordham Manor, is a 300 square foot co-op within a 6-story building. Though the kitchen needs improvement, the place is only 45minutes away from Midtown via the subway.
Other lows in New York property listings are a co-op in St. Albans, Queens, one-bedroom co-op near Ditmas Park, Brooklyn, and a 350-square-foot studio in St. George, Staten Island. They are tagged at $59,000; $54,900; and $82,500 respectively. The price tags on these properties are lower than when they reached their highs a year and a half ago.
If one is to dwell in the low-end market, then owning a home will definitely be cheaper than renting. Take for example the Queens co-op. One will only need to shell out a mere $300 per month if he is to get a 30-year fixed mortgage with a 4.5% interest rate.
But in a city like New York, where apartment prices have a median of $370,000, the word ‘cheap’ becomes relative. A low-end residence in the Bronx, Queens and Staten Island will still hit six figures (around $250,000). Brooklyn and Manhattan offer low-end sales prices at $400,000 and $600,000 respectively.
During the housing market boom in 2006 to 2008, NYC house pricing peaked 30% better than today’s market prices.
37% of the current New York listings are low-end units. These units have seen less price declines as compared to their high-end counterparts, thanks to a federal tax credit that amounted to as much as $8,000 for first-time home owners. This doesn’t mean, though, that low-end units are flying off the shelves: potential buyers are still having a hard time obtaining financing.