Inhabit by Corcoran

“Brooklyn’s market continues to benefit from decisive buyers willing to act when the right opportunities come along. Elevated mortgage rates and economic uncertainty haven’t disappeared, but the third quarter’s rise in signed contracts suggests many are looking past the headlines and focusing on long-term value.

With inventory expanding, especially at more accessible price points, buyers have greater flexibility than they’ve had in recent years. Still, pricing has remained firm, and homes are spending less time on the market, reinforcing Brooklyn’s diverse and enduring appeal.”

– Michael Sorrentino, SVP, General Sales Manager, NY

The Brooklyn market remained steady in the third quarter, with buyers staying engaged amid economic uncertainty and elevated mortgage rates.

• Closings fell 3% YOY to 1,481, with the entire decline coming from new development (41% to 240) amid limited supply.
  • Resale condo (+17%) and co-op (+6%) closings both rose.
• However, signed contracts rose 8% YOY to 884, the highest third-quarter level since 2022 and a second straight quarter of annual growth.
• Dollar volume edged up 1% to $1.755B, the strongest of any quarter since 2022, as higher prices offset fewer transactions.
• Homes are selling more quickly with days on market down to 71, the shortest third-quarter marketing time since 2022.

Entry-level listings drove this quarter’s annual gains.

• Inventory grew rapidly, up 21% YOY to 2,033 listings, the highest level since mid-2022.
• Listings under $350K jumped 43%, and listings from $350K to $500K rose a meaningful 25%.
  • By contrast, listings over $2M inched up just 1%, as limited new development launches held back the high end.
• Resale co-op inventory rose 31% to 852 listings, and co-ops now make up 42% of supply, overtaking resale condos as the largest share.
• With just 337 listings, new development’s share of closings fell to 16% from 27% a year ago.

Pricing is holding firm.

• Average price rose 4% YOY to a record $1.185M, driven by a greater proportion of sales over $2M (15% of closings, the second-highest share on record).
• Median price dipped just 1% to $866K, still the third highest on record, while average price per square foot held flat at $1,161, just $7 off the record.
• Resale condos led the gains, reaching new highs on median price (+22% to $1.215M), average price ($1.422M) and average price per square foot ($1,248).
• New development median price rose 4% ($1.361M), the highest third quarter figure on record.