Purchased for $545,000 in August of 2016, the 371-square-foot studio condo #307 at 388 Fulton Street returned to the market listed for $525,000 in September of last year, a sale at which would have represented a 4 percent drop in value on an apples-to-apples basis.
Reduced to $495,000 in November, newly touting “transparent pricing” and “not to miss 3% down financing available for qualified Buyers with VERY competitive interest rates,” 388 Fulton Street #307 sold for $495,000 at the end of December, at which point the average rate for a 5-year ARM was running around 2.41 percent, which would have equated to a total monthly payment of around $2,600 a month, including property taxes, HOA dues ($479) and insurance, assuming a 20 percent down payment.
Having suddenly returned to the market listed for $509,000 this past June, an asking price which was reduced to $495,000 in July, 388 Fulton Street #307 is now listed for $455,000 and touting a “motivated” seller, a sale at which would be 16.5 percent below its 2016 value, with an 8 percent drop in value on an apples-to-apples basis over the past 9 months alone.
At the same time, with the average rate for a 5-year ARM having jumped to 4.64 percent and poised to climb, the monthly payment for the studio, assuming a $455,000 sale price and 20 percent down, would now be closer to $2,900 a month, or 11.5 percent more than 9 months ago. And in order to match the relative affordability of the condo at the end of last year, the sale price would need to be closer to $400K, which would represent a 27 percent drop in value from the third quarter of 2016 on an apples-to-apples basis.