The Brooklyn market is humming with activity, despite sales numbers being down across the borough.
“The Brooklyn market is still buzzing, with the third quarter of 2022 ranking as one of the top quarters on record for sales. After two years of surging highs, the market is transitioning to pre-pandemic levels, and both median and average prices are modulating to reflect the change.
The key point to keep in mind as we acknowledge this quarter’s slide in sales is that Brooklyn is an exceptionally desirable place to call home and, as such, inventory hit its lowest level in a decade. However, with the rise in sales of resale co-ops, the market remains active. Buyers are adjusting their purchasing priorities amidst the myriad changes in economic conditions, but people still want to buy homes and they want to do it in Brooklyn.”
– Michael Sorrentino, SVP, General Sales Manager, NY
Buyers are facing depleted inventory, increased mortgage rates and high pricing, yet 3Q 2022 still ranks as the second-highest third quarter on record in terms of closings.
- Sales were down 12% this quarter from 3Q 2021’s record high, but with 2,173 closed sales, this number is not far off from last quarter’s figures.
- 3Q 2022’s sales numbers were the fourth most sales on record for any Brooklyn quarter.
- Buyers are facing different economic conditions than a year ago. As a result, signed contracts were down 33% annually.
- A main cause of this dip is record lows of inventory. 3Q 2022 saw inventory hit its second-lowest point in a decade, with only 1,937 active listings.
- These lows increased competition throughout the borough, driving days on market down to just 58 days — another record figure.
Buyers are gravitating to homes at a lower price point, shifting median and average price downwards. Median price across the borough dropped 5%, while average price slid 2%.
- In 3Q 2022, sales under $500K accounted for 27% of the market, a 7% jump from a year ago.
- While average price dipped for the first time in three years, 3Q 2022 is still the fifth consecutive quarter with prices surpassing $1M.
- With the shift towards lower price points, resale co-op transactions reached its highest sales figure in over a decade — $830K. This is due to buyers expanding their reach into South Brooklyn, where the median price is $406K.
Totaling at 281 transactions, sales activity in Bedford-Stuyvesant, Crown Heights, Prospect Lefferts Gardens, and Bushwick was strong, representing a 24% jump YOY.
- These neighborhoods also saw the biggest inventory drop — 33% year-over-year. Days on market was a mere 48 days, a tumble of 52%.
- Median price in these neighborhoods across most product types was up.
- Overall, median price increased 2% to $776K.
- Median price for resale condos and co-ops jumped double digits for both product types, at 19% and 28% respectively.
With the influx of buyers seeking a Brooklyn address, strong sales sent 3Q inventory to its lowest figure in a decade, sliding 21% YOY and 4% quarter-over-quarter.
- 3Q 2022 is first time since 2015 that inventory has dropped between the second and third quarters. This was a seasonal anomaly, in which 2Q 2022 had a higher-than-usual supply of active listings.
- Homes under $1M saw the largest decrease, declining 23% annually. Inventory over $1M decreased a less dramatic 15%.
- Demand for larger residences is ongoing and supply shrank for three bedrooms by 18%. Market share for three bedrooms was also down 17%, its lowest figure since 2018.
- Resale co-op listings were up 7% above the five-year quarterly average at 785. This is the only product type to see an increase in listings annually.