“Brooklyn’s real estate market started the second quarter with solid momentum, but as economic and political uncertainty grew, activity naturally began to cool. While both contract signings and closings declined year-over-year, the borough’s lasting appeal remains evident — reflected in resilient resale pricing and consistent demand, particularly for homes under $1 million.

Even with fewer new development sales and tighter inventory, Brooklyn’s average price held near historic highs, underscoring the market’s resilience. As we head into the second half of the year, motivated buyers and sellers should continue to discover valuable opportunities in this dynamic environment.”

– Michael Sorrentino, SVP, General Sales Manager, NY

Though Brooklyn began the second quarter with strong momentum, because of current economic and political challenges, market sentiment eroded as the quarter progressed.

• Contracts signed, the timeliest indicator of market conditions fell 5% YOY to 1,048 deals.
• Closings also fell to a 12-year second quarter low, down 17% to 1,169 sales.
• The decline in closings led to a 19% annual decline in sales volume.
• New development sales and resale condo/co-ops sales were down 41% annually and 11% respectively.

In addition to general market uncertainty, inventory constraints are also impacting sales.

• Inventory declined 1% YOY to 1,862 active listings for the first time after four quarters of increases.
• Homes priced under $1M, which account for over 60% of Brooklyn’s sales market, experienced a 7% decline annually, leading to increased competition in an already tight market.
• Conversely, in more expensive submarkets, inventory increased, with Fort Greene, Clinton Hill, and Prospect Heights seeing a 37% rise.

Pricing in Brooklyn has edged downward, largely due to a slowdown in new development sales.

• Median price fell 3% annually to $810K, though the decline was versus a three-year high reached last year.
• Average price, although down 2% YOY to $1.085M, was still one of the highest figures in the past three years.
• Resale co-op median price rose 7% to $494K, due to a greater share of sales over $750K, and resale condo median price was up 5% due to the expanding share of sales over $1M.