“Brooklyn’s real estate market in the Second Quarter of 2024 showed mixed signals, but the positives clearly outweighed the negatives, indicating a market on the mend. Closings increased for the second consecutive quarter, inventory constraints eased with a 15% annual rise in listings, and the median price hit a record high of $883K, underscoring Brooklyn’s desirability and competitiveness.

Despite a slight dip in contract activity compared to 2023, driven by higher mortgage rates and lower supply in prime residential areas, pent-up demand gives us confidence that the third quarter of 2024 will further strengthen Brooklyn’s market recovery.”

– Michael Sorrentino, SVP, General Sales Manager, NY

Brooklyn exhibited mixed signals in 2Q 2024, yet with more positive signs than negative, indicating a slow path of improvement. Closings, sales volume, inventory, and pricing increased annually, while signed contracts and days on market declined during the same time period under the weight of high mortgage rates and tight supply in the most sought-after areas in the borough. 

• Closings rose 1% annually, to almost 1,400 sales, and 14% quarter-over-quarter. This is the second consecutive quarter of annual growth after declining year-over-year for nearly two years.
• With the increase in closings and robust price gains, sales volume this quarter rose 11% annually to $1.6B.
• The only product type to see a decrease in sales this quarter was resale co-ops. Because of a decline in sales under $350K and over $1M, resale co-ops accounted for only 32% of sales in 2Q2024, their lowest market share in two years.

Supply remains a key factor impacting the health of the Brooklyn market. In the second quarter of 2024, it received a much-needed reprieve as there were approximately 1,900 listings — the highest number of active listings in the borough since 3Q 2022.

• After ten consecutive quarters of annual declines, listed inventory was up 15% annually and 33% quarter-over-quarter. 
• The increase in inventory was widespread, with active listings climbing versus a year ago for all price segments and nearly all submarkets. 
• Resale condo listings had the largest annual percentage change, up 24% year-over-year to 669 units, a nearly three-year high.
• Contracts signed, the market’s real-time indicator, declined 7% YOY in the face of affordability headwinds and low supply in prime residential zones.

Brooklyn prices increased across the board for the second consecutive quarter.

• With suppressed activity in the low end of the Brooklyn market and a higher market share of sales over $1M, median prices hit a new record high of $883K, a 15% increase over last year.
• This increase was propelled by a 42% market share of sales over $1M, versus 35% a year ago.
• The average price per square foot also hit a record high this quarter due to a shift in market share to new development and resale condo closings. At $1,147, this is a 4% year-over-year increase. 
• All price segments below $750K had a drop in the market share of sales, adding up to an 8% annual decline.