Brooklyn Real Estate Market Report: 2Q 2023

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.

Read the full report.

©2024 Corcoran Group LLC. All rights reserved. Corcoran and the Corcoran logos are trademarks of Corcoran Group LLC. The Corcoran® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Real Estate Inc. and franchised offices which are independently owned and operated. The Corcoran System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Listing information is deemed reliable, but is not guaranteed.