Brooklyn Real Estate Market Report: 3Q 2025
“Brooklyn’s real estate market continued to show its strength in the third quarter, with buyers re-engaging despite elevated mortgage rates and broader economic uncertainty. Contract activity ticked up, and sales volume climbed — driven by higher prices and renewed interest in new development offerings. Notably, several pricing indicators reached record highs, underscoring the borough’s enduring appeal and the premium buyers are willing to pay for quality product.
While inventory remains tight, we’re seeing meaningful movement in more affordable segments and smaller residences. As we head into the final stretch of the year, Brooklyn’s market still has plenty to offer for buyers looking to make a smart move and sellers ready to take advantage of strong demand.”
– Michael Sorrentino, SVP, General Sales Manager, NY
Brooklyn’s residential market demonstrated resilience this quarter while gaining momentum as buyers re-entered despite ongoing economic uncertainty and elevated mortgage rates.
- Contracts signed, the timeliest indicator of market conditions, increased 4% to 821 deals.
- Conversely, closed sales were down 2% YOY to 1,386 transactions, making 3Q 2025 the fifth consecutive quarter of annual decline.
- Due to higher overall pricing, sales volume was up 11% this quarter to $1.628B.
- New developments were the only product type with an annual increase in closings, finally reversing direction after four prior quarters of decline.
Though buyers have willingly entered the market, sellers remain hesitant, resulting in continued inventory contraction.
- Listed inventory fell 6% annually to 1,681 units – 16% below the ten-year third quarter average due to a sharp decline in new development listings and a 2% drop in resale condo listings.
- Inventory increased annually for studios and one-bedrooms but decreased for two- and three-bedrooms by double-digits.
- Homes priced between $350K and $500K saw the largest increase in active listings, up 15% over last year, while the number of available homes in the $750K – $1M price range fell 26% annually.
Several Brooklyn pricing indicators reached record highs in 3Q 2025.
- Median price rose 16% YOY, up to $925K as sales shifted towards new development properties.
- Overall average price per square foot increased 10% to $1,198, which surpasses the record set in 2Q 2024 by 3%.
- New development prices were up 38% annually to $1.401M fueled by strong sales in Boerum Hill, Williamsburg and Greenpoint.
- Resale condo media price dipped 1% YOY to $1.025M, but the figure remains the second-highest on record.
