Brooklyn co-op and condo median sales price hits record high of $990,000
- The median price for condos in the borough also hit a record high of $1.1 million in the second quarter
- At the same time, the number of sales declined again in the second quarter by 4.9 percent
Trendy neighborhoods such as Williamsburg, above and Greenpoint saw a jump in sales in the second quarter, according to a market report from Compass.
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Brooklyn co-op and condo prices hit record highs in the second quarter, even as the number of sales dropped yet again.
The median sales price for Brooklyn apartments jumped to $990,000 in the second quarter—the highest price tag on record, according to the latest version of the Elliman Report.
Higher condo prices drove that increase, with the median sales price for a condo in the borough rising by 14.3 to nearly $1.1 million compared to last year—another record high. Meanwhile, the median price of a Brooklyn co-op dropped by 8 percent to $515,000.
Would-be-buyers may not be thrilled about a higher median price, but there was some good(ish) news.
While buyers closed 2,415 deals in the second quarter, a 4.9 percent decrease from the same period last year, they also found more options. Listing inventory rose by 14.5 percent amid slower sales, the first time in more than two years the number of available apartments has increased, according to the Elliman report.
But Brooklyn still has heavily restrained supply, said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and the author of the report.
“One data point does not make a trend,” Miller said. “Inventory has been a longstanding challenge in Brooklyn.”
Those slower sales and higher inventory meant it took 20 percent longer for sellers to offload their apartments, or about 4.2 months. Bidding wars slipped slightly as well: 18.6 percent of deals saw bidding wars in the second quarter, compared with 20.2 percent in the same quarter last year, according to the Elliman Report.
A borough of ‘mixed signals’
The Brooklyn sales market exhibited “mixed signals” in the second quarter, according to Corcoran’s second quarter sale report. Despite higher prices, the number of contracts declined, indicating that higher mortgage rates and tight inventory are continuing to impact sales.
“Closings, sales volume, inventory and pricing all increased versus a year ago,” read the Corcoran report. “At the same time, signed contracts declined and marketing times rose under the weight of high mortgage rates, climbing prices, and tight supply in the most desirable parts of the borough.”
High mortgage rates, coupled with low inventory, have stymied New York City’s sales market for multiple quarters by discouraging both buyers and sellers—who are sitting on rates in around 3 and 4 percent and reluctant to sell if it means borrowing in the 7 percent range.
“Sales have been underperforming in all five boroughs, and across the country, as mortgage rates have surged at their steepest ascent in 50 years,” Miller said. “Limited supply, lower affordability, and fewer listings has restrained sales levels. Until rates begin to fall, I don't think sales levels are going to change a lot.”
Cash buyers continued to dominate Brooklyn apartment sales in the second quarter, representing 42.8 percent of the market, according to the Elliman report. The number of cash sales rose 7.9 percent compared to the second quarter of 2023 while the number of financed sales fell by 12.7 percent in the same period.
Williamsburg and Greenpoint see big sales
North Brooklyn “fared the best in signed contracts and substantial price increases,” said Coury Napier, director of research for Serhant. The median price of a unit in North Brooklyn rose 17.1 percent from the same period last year to $1.39 million, according to Serhant’s second quarter report.
Trendy neighborhoods Williamsburg and Greenpoint saw a jump in sales in the second quarter, particularly at new developments, according to Compass’ market report.
Sales in the area grew 34.3 percent in the second quarter compared to the same period last year, with apartments in the $2 million price range representing the largest share of signed contracts, according to Compass.
Queens sees slightly higher sales
The number of sales in Queens ticked up 1.3 percent compared to the year-ago quarter, to 3,678, according to Compass’ report.
The number of properties listed below $750,000 decreased last quarter compared to the prior year, indicating that buyers gravitated toward more affordable properties, according to Compass’ report.
At the same time, condo sales in the borough declined by 16.6 percent compared to the prior year.
