Submitted by wiseup you tweeked kids, Sep 20, 2007 15:16

The fact is, asking prices are down already in Williamsburg. Local broker David Maundrell says the area is off as much as 10 percent, though he's quick to add that it looks like it's stabilized. The culprit appears to be the huge amount of new construction (and reconstruction). According to the Furman Center for Real Estate and Urban Policy at New York University, the Department of Buildings issued 559 new certificates of occupancy here in 2005—more than five times as many as in Park Slope and Carroll Gardens combined. That said, some 'Burghers have a lot more to worry about than others. "Everything good that Williamsburg is known for, it's on the north side," says Maundrell. South of North 1st Street, things get far dicier, especially in smaller condo projects (eight units and below) with "rental-quality" finishes. They don't offer much in the way of amenities, turning off high-end buyers. They also attract plenty of first-timers—creative types, often freelance workers, who have availed themselves of "exotic" mortgages that didn't require much documentation. (At least 30 percent of Maundrell's local clients fill the bill, he admits.) Those "no-doc loans" are harder to come by now, so if these folks can't spring for those apartments anymore, who will? Greenpoint may see a related decline in property values, because its market catches the Williamsburg overflow. If those T-shirt designers and bloggers can suddenly afford their first choices, closer to the all-holy Bedford Avenue stop on the L, they'll abandon Greenpoint in a Brooklyn minute.

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