Brooklyn Real Estate Market Report: 2Q 2022

This quarter’s historically high number of closings and above-average contract activity highlights Brooklyn’s resiliency and demonstrates that the long-term health of this market is likely here to stay.

Despite rising prices and increased interest rates, Brooklyn’s second quarter was one of the strongest on record.

  • Brooklyn’s luxury market had its best quarter to date, which swayed macro price trends to surpass their previous highs.
  • Sales over $2M set a record with well over 200 closings, a 25% surge versus last year.

Brooklyn’s expanding luxury market drove both median price and average price to reach new highs.

  • For the first time in over five years, average price per square foot and median price per square foot both exceeded $1,000.
  • At $1,013, average price per square foot increased 11% YOY and 7% quarter over quarter, reaching a five-year high.
  • Median price per square foot increased 12% year-over-year to $1,052, which was the highest on record.

For the fifth consecutive quarter, the Brooklyn market saw over 2,000 condo and co-op closings.

  • Since 2Q 2021 was a record year for sales due to pent-up demand, the annual decline of 14% in sales was no surprise.
  • Even with contracts signed dropping 20% vs. last year’s record high, activity was significantly above the pre-pandemic average.

Inventory fell annually for the third consecutive quarter and down 4% compared to last year, but despite the YOY decline, this was the second highest spring selling season inventory figure seen since 2016.

  • Inventory increased year-over-year for the highest and lowest price segments. Annual decline was the most dramatic for listings priced between $750K and $1M.
  • With inventory at large-scale properties selling off, listings in Brooklyn Heights, Cobble Hill, DUMBO, and Downtown Brooklyn fell by more than 20% compared to a year ago.

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