“Outdoing itself yet again, the Brooklyn market is off to a roaring start in 2022. Right on the heels of a record-setting year, 1Q was the strongest first quarter for sales in the borough in over decade. Due to a thriving luxury market and a surge of first-time buyers, sales were up 7% to 1,993 closings annually. The strong sales of entry-level and resale co-ops caused median prices to moderate across the borough for the first time in six quarters.
Drawn to the promise of more space and a value that extends further than your wallet, buyers are determined to find their piece of the borough. As inventory is at a four-year low, Brooklyn continuously proves itself as one of the most desirable places to call home. With no sign of its allure fading, the local market is on track to have another phenomenal year.”
–Michael Sorrentino, Senior Vice President, General Sales Manager, New York
Breaking a prior sales record that was set only last year, 1Q 2022 is one for the books.
- In what is now the strongest first quarter on record—even after a history-making 2021—there were 1,993 sales, up 7% from the previous high set this time last year.
- 1Q 2022 is, remarkably, the sixth consecutive quarter of annual sales gains in the Brooklyn market and with all product types reaching both quarter and record highs, it’s a strong signifier of competitive demand across the borough.
- If these first quarter results are any indication, 2022 is shaping up to be a phenomenal year in Brooklyn real estate.
The thriving luxury market and the resurgence of first-time buyers had New Yorkers flocking to the already in-demand borough where inventory is increasingly sparse.
- While contract activity cooled slightly—down 4% quarter-over-quarter—with 1409 contracts signed, 1Q 2022 was still incredibly active.
- Even with an increase in sales activity, just 1,900 units were listed by the end of the quarter—a decrease of 27% YOY. This is the lowest first quarter total in over eight years, dropping significantly from last year’s post-COVID high of 2,600.
- As the market remains hot, days on market dropped 15% YOY to 83, the lowest figure in three years. Two-bedrooms were only on the market for an average of 80 days, disappearing quickly as buyers continue to want more space.
Due to strong activity from both entry-level and resale co-op buyers, median price in Brooklyn moderated for the first time in six quarters. Conversely, average prices continue to climb, exceeding $1M for the third consecutive quarter.
- Median price is down 2% year-over-year, from $792K to $775K, and is 7% lower than the record high of $830K achieved in 3Q 2021.
- Average price, driven up by the record-high share of sales over $2M, increased 7% annually from $938K to $1.002M. Buyers seeking high-quality resale condos and new development continued to command more than their fair share of the market.
- At $998 per square foot, 1Q 2022 saw median price per square foot figures reach their second-highest level ever, only behind 1Q 2017.
In Park Slope and Gowanus, median price increased a stunning 29% YOY, a significantly larger gain than any other neighborhood in the borough. However, inventory in these neighborhoods saw a jaw-dropping 49% decrease over the same period.
- Sales in the region encompassing Kensington, Windsor Terrace, Ditmas Park, Flatbush, and Prospect Park increased 28% over last year, the largest gain in Brooklyn.
- Throughout the borough all inventory is down double-digits since 2021, with listings in the Fort Greene, Clinton Hill, and Prospect Heights area, dipping 26% annually, 50% below the five-year average.
- South Brooklyn has the highest market share of sales, increasing 5% over last year to 34%.