The second quarter met New York City’s most populous borough with record-low inventory, a bump in sales, and a window of opportunity for buyers.
“Even as headwinds persist in Brooklyn, the second quarter saw an encouraging rebound from the start of 2023, showing signs of a market starting to normalize. Closings saw an annual decline, but sales were up 22% quarter-over-quarter, a greater rise than historically seen during this period. And even though inventory remains a challenge — falling to one of the borough’s lowest levels in the past decade — I encourage prospective buyers to capitalize on this moment. Prices are on the rise and this window of opportunity to become a Brooklyn homeowner may soon be closed.”
– Michael Sorrentino, SVP, General Sales Manager, NY
While challenges persist in the Brooklyn market, the second quarter saw an encouraging rebound from the start of the year.
- Second quarter closings declined 39% year-over-year, but compared to the start of 2023, sales in 2Q were up 22% (a greater rise than historically seen between the first and second quarters).
- Last year, closings were elevated to a near-record amount as buyers took advantage of very low mortgage rates, exaggerating the percentage declines.
- Contract activity also fell year-over-year, but the 19% drop was less than the decline seen in closings.
Median price fell to $775K, the fourth consecutive quarter of year-over-year decline due to increased buyer activity at lower price points.
- Though average price slipped annually, a robust luxury market propelled the figure to $1.058M, the second highest on record.
- Numerous penthouse and high-floor sales in prime locations helped average price per square foot obtain a new high.
With the exception of the 2020 market pause, inventory fell to one of its lowest levels in the past decade, leaving buyers with limited options.
- The number of available listings shrank 21%, marking the seventh consecutive quarter with an annual decrease.
- 2Q’s annual decrease in listings could be seen across all product types and in nearly all submarkets.
- Carroll Gardens, Boerum Hill, and Red Hook saw an annual increase in inventory due to a jump in resale listings.
- Would-be sellers with more favorable mortgage terms continued to hold rather than list, and very few new developments opened for sales.