The market slowed versus last year amid shifting market dynamics.

Inventory dips for first time in a year.

Brooklyn’s residential market experienced a slowdown in May, with overall sales declining 11% year-over-year, marking the lowest May total in five years.

• Bucking the trend, the $1.5M to $2M price bracket was the only tier to post annual growth, with 16 more contracts signed than a year ago. This uptick was largely driven by increased resale activity in North Williamsburg and Park Slope — two neighborhoods that continue to attract strong demand.
• Conversely, the sub-$1.5M market saw a sharp contraction, with 61 fewer contracts signed compared to May 2024. This decline was concentrated in South Brooklyn, Crown Heights, and Bushwick.
• Another bright spot: Park Slope/Gowanus saw contract activity reach a two-year high, fueled by new development inventory entering the market. Additionally, the average days on market dropped 37% year-over-year, largely because fewer listings lingered for over a year — an encouraging sign of improved market efficiency.

For the first time in over a year, Brooklyn’s active inventory posted an annual decline, slipping 2%. Pricing trends remained strong.

• The average price per square foot rose 3% year-over-year across the borough, with both condos and co-ops contributing to the gain. Co-ops led the way, with a 5% increase in price per square foot, driven by heightened activity above $1,000 per square foot in high-demand areas like Park Slope and Brooklyn Heights.
• Buyer competition remains intense: roughly 40% of condos and co-ops sold above the last asking price. As a result, overall negotiability narrowed to just 1% above ask, marking the fifth consecutive month above ask.