Once again, Brooklyn sales decline but this time it's good news
- Transactions in Brooklyn fell 1.2 percent in the first quarter compared to a 39 percent drop a year ago
- At $950,000, the median price for Brooklyn co-ops, condos, and one- to three-family houses was unchanged
- In Queens, both the median sales price and number of deals rose, according to the Elliman Report
Brooklyn buyers continue to have fewer options. Listings dropped 8.8 percent in the first quarter, the eighth quarter to see a decline in inventory, according to the latest edition of the Elliman Report.
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Usually, when it comes to a sales market, one side is up and the other is down, but there was a bit of good news for both Brooklyn sellers and buyers in the first quarter market reports.
First, the good news for sellers: The number of deals in the first quarter for Brooklyn co-ops, condos, and one- to three-family houses was down 1.2 percent compared to the year ago quarter, making this the seventh quarter showing a decrease in sales.
Why is this good news? Because the decline in deals each quarter is diminishing, according to the latest edition of the Elliman Report covering Brooklyn, Queens, and the Riverdale area.
As Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report, pointed out, a year ago the drop in Brooklyn sales for the first quarter was 39 percent, followed by a 32 percent decline in sales for the second quarter, 25.7 percent in the third quarter, and 18 percent in the fourth quarter.
Compared to those double-digit drops, a 1.2 percent decrease in transactions in the first quarter of 2024 is encouraging for sellers.
Median price holds steady in Brooklyn
As for buyers, they’ll find the median price for Brooklyn co-ops, condos, and one- to three-family houses didn't budge from a year ago. At $950,000, Brooklyn’s median sales price was unchanged from the first quarter of 2023. In prior quarters, Brooklyn’s median price increased despite falling transactions.
Still, buyers have fewer options. The number of Brooklyn listings fell year over year, dropping 8.8 percent, the eighth quarter to see a decline. It’s an indication that like Manhattan, owners in Brooklyn are “locked-in” thanks to their low mortgage rates and are reluctant to sell.
Both median price and deals rise in Queens
In Queens, both the median sales price and number of deals rose, according to the Elliman Report.
It was the first time in six quarters that the median sales price ($669,250) represented an increase, rising 3 percent over the first quarter of 2023. Transactions ticked up for the first time in seven quarters, rising 2.6 percent, as per the report.
But options for buyers were slimmer as the number of listings dropped 5 percent from a year ago, making this the fifth, consecutive quarter with a decline in inventory.
Bronx listings fall for the past two years
Over in the Riverdale market area, which encompasses Fieldston, Hudson Hill, North Riverdale, and Spuyten Duyvil, the median sales price slipped year over year for the fourth, consecutive quarter, dropping .7 percent to $342,500.
Deals fell annually for the second time in three quarters, according to the report, plunging 23.5 percent. The number of listings has fallen every quarter year over year for the past two years.
‘Heightened competitiveness in Brooklyn’
Compass also released its first quarter sales market report for Brooklyn, which notes a modest shift in the average price suggests a “heightened competitiveness in the Brooklyn market.”
South Brooklyn had the most new listings in the first quarter, with 54.3 percent market share, followed by Northwest Brooklyn (including areas such as Dumbo, Fort Greene, and Clinton Hill) with 20.2 percent. Condo deals increased here, the firm said, and the area accounted for 30.6 percent of signed contracts.
The Compass report said that deals in the $1 million to $2 million range accounted for 37 percent of contract activity, “making it the sole price group to witness a year-over-year improvement, with a notable climb of 15.4 percent.”
‘Signs of potential improvement’
According to Corcoran’s market report for Brooklyn, the first quarter shows signs of potential improvement. The report pointed to an improvement in deal activity despite record low inventory, which “speaks volumes of its strength.” Signed contracts, a forward-looking indicator, increased 3 percent year over year and 5 percent quarter over quarter.
The report notes how differently the Brooklyn sales market behaves at the upper and lower ends.
“On one hand, budget-conscious buyers remained sidelined by mortgage rates, driving down the number and market share of resales under $1 million. At the same time, new developments in Brooklyn’s more expensive neighborhoods saw a flurry of sales, driving the market share of new development upward,” the report said.
Larger homes lose out
SERHANT also presented first quarter sales market reports for Brooklyn resales, Brooklyn new development, and Long Island City condos. While the number of deals for houses increased 5.4 percent from last year, there were declines in deals for larger properties, said Coury Napier, director of research.
“We saw the biggest decline in transactions for larger units. Homes that offered at least four bedrooms fell by 20.6 percent from last year and 4.1 percent from last quarter,” Napier pointed out.
Transactions for studios grew by 8.2 percent from the same period last year and saw their average price increase 7.1 percent to $465,861, the report noted.
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