“In the first quarter of 2024, Brooklyn’s real estate market showed promising signs of a return. Not only did contracts signed jump 3% despite continued limited inventory across the borough; we’re also seeing an uptick in closed sales and pricing statistics, a side effect of the 40% annual rise in new development sales this quarter.
While it’s still premature to declare a definitive turnaround, we’re optimistic about the Brooklyn market in the coming months.”
– Michael Sorrentino, SVP, General Sales Manager, NY
1Q 2024 experienced signs of potential improvement. Borough-wide sale and pricing statistics all grew versus a year ago, suggesting that Brooklyn remains both a market in demand and on the verge of a meaningful rebound.
- Closings rose 13% annually to almost 1,300 sales. The 6% quarterly increase is also in line with the typical seasonal rise in closings.
- New development sales surged 40% YOY as several buildings closed around 20 units apiece.
- With the increase in closings and uptick in pricing, sales volume this quarter rose 21% annually to $1.3B.
Although premature to determine if the Brooklyn market has turned a corner, the improvement in deal activity amidst record low inventory speaks volumes of its strength.
- Contracts signed, the markets real time indicator, increased 3% YOY and 5% QOQ.
- Brooklyn inventory fell for the tenth consecutive quarter, down 15% annually to about 1,400 listings and the second lowest level on record.
- With sellers hesitant to lose their low mortgage rates, listings under $1M were down in 1Q 2024, with listings under $350K down 41% YOY.
- Thanks to a greater share of new developments, listings in the $1M and $2M range rose 12% annually. The rise in new developments also resulted in inventory in Williamsburg and Greenpoint increasing 14% YOY.
Shifts in the mix, size, location, and profile of First Quarter 2024 closings drove Brooklyn price figures higher than the First Quarter of 2023.
- A shift in the market share of sales towards new developments, particularly in Williamsburg, Greenpoint, and Downtown Brooklyn, contributed to the annual increase in price statistics.
- Median price and average price were up 8% and 7%, reaching $777K and $1.030M respectively.
- Resale condo median price rose 3% to $978K as there was an uptick in the share of sales over $1M this quarter.