BROOKLYN — Brokerage firm Stribling & Associates has released its second quarter Brooklyn Market Report. The report is the only to cover inventory, contracts and sales across the entire borough. The data revealed a yearly decline in the total number of closings, but a slight uptick in contract activity, as the number of properties listed surged to near-record levels.
“We saw a six percent decline in the total number of sales in the second quarter,” said Garrett Derderian, Director of Data & Reporting at Stribling. “The slowdown was a result of fewer contracts signed earlier in the year, as buyers took a pause as the new tax policy was implemented. We also saw global instability and swings in the stock market, all of which affect buying patterns.”
According to the report, condo and co-op units both recorded average and median price declines. Condos saw their average and median prices both fall 4% to $1,082,894 and $850,000, respectively. Co-ops recorded an average price drop of 9% to $558,480, and median decline of 4% to $430,000. A bright spot was the townhouse market, which Derderian described as “consistently strong” in the sub-$4 million market. Here, the average price grew by 5% to $1,077,339 and median price jumped 6% to $850,000, mirroring that of condos. However, townhomes saw the greatest discounts, averaging 8%.
Derderian pointed to contract activity of a better gauge of current market conditions: “We are seeing buyers take more time when looking to purchase, resulting in an increase in the time a property stays on the market,” Derderian stated. Indeed, the average days on market increased from 82 in 2Q17 to 90 in 2Q18. Mr. Derderian continued, “Despite the longer time to enter contract, contract prices increased across all four submarkets. We see this as a positive sign that buyers still see great value in properties across the borough and are willing to pay a premium in the markets that are in close proximity to Manhattan.”
Northwest Brooklyn, which includes neighborhoods such as Brooklyn Heights, Cobble Hill, and Park Slope, remained the most expensive market for recorded sales, contracts signed, and active inventory. “There is a real sense of community within the neighborhoods in Northwest Brooklyn that is not replicated anywhere else in the city. You still have the mom and pop shops, along with the waterfront and Prospect Park. Most of these areas are also near Manhattan, making them feel a world away, when it can be as little as a 10-minute train ride, if not less.”
A bevy of new construction projects and demand throughout the borough continued to push the number of properties listed and prices higher. “The second quarter of 2018 saw the highest 2Q-level of listed properties since 2015. This was also the first time where we saw the average asking prices in all four submarkets exceed $1 million,” Derderian highlighted. “There was tremendous growth in Northwest, East, and South Brooklyn as new condo projects and an increased demand for home purchases pushed asking prices to record levels.” Notably, the North Brooklyn median and average asking prices were both down 0.1%, which Derderian observed as “unsurprisingly flat, as many buyers take a pause” while sellers wait out the short-term implications of the impending L-train shutdown.
The report also noted second quarter inventory priced below $500K was at its lowest 2Q-level-to-date, at 14%. Meanwhile, listings priced between $1–2M and $2–3M each recorded their highest inventory share-to-date, at 32% and 10%, respectively.
Highlights from Stribling & Associates 2Q Brooklyn Market Report:
Recorded Sales:
Contracts Signed:
Inventory:
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