From SI Live:
‘Fear of missing out’: As buyers scramble for a home in ruthless market, is Staten Island in a real estate bubble?
On a quiet street in Great Kills, a faded turquoise cape is slowly falling apart. Its front steps cracked and guarded by caution tape, layers of time-worn roof shingles drooping from its peak, the 1950s-era home is tired and poorly maintained, its driveway thick with weeds. But despite its offensively overgrown yard and uninhabitable interior, the property boldly boasts a “For Sale” sign on the front lawn and is considered a primo slice of Staten Island real estate. The list price? $569,000.
“In need of major renovations. Being sold ‘AS IS,’” the listing for the small and shabby house reads. “Cash only may be needed…come with an open mind.”
The home’s advantages are few: It’s located on a quiet block and offers a three-car driveway. It’s also a completely detached residence situated on a generous 50×100 slab. But given its poor condition and need for a total overhaul, the half-million price tag seems almost unthinkable. Yet it’s not. In Staten Island’s current housing climate, the asking price might even be considered too low. And properties like this one (yes, there are many others just like it) imply that the borough is at the epicenter of a housing bubble. But is it about to burst?
AN ‘UNPRECEDENTED’ HOUSING CYCLE
“In terms of a bubble, no real estate professional wants to comment on whether or not that is a reality,” noted Joe Tirone, founding broker of Compass Realty in Stapleton, who has been actively involved in Staten Island real estate for three decades. “I’ve been through so many different market cycles over the past 30 years, and this one is unprecedented — completely different than any other cycle I’ve ever seen. But if this is indeed a bubble, I don’t think it’s going to burst; instead, the air is going to leak out of it very slowly.”