Sales Dip, Prices Rise in Brooklyn

A report out from Douglas Elliman sheds some light on the by-now-no-longer-news that real estate prices are rising in Brooklyn. Curiously, it found that the number of sales declined in the first quarter vs. a year ago — but that’s because inventory is so low, not because no one is buying in Brooklyn. And it’s that very lack of inventory, combined with high demand, that is pushing prices up. The firm also reported a rise in bidding wars. To review, here are the highlights of the report:

• Lowest inventory levels recorded in five years.
• Sales below year ago levels as lack of inventory impairing sales volume.
• Prices are up as supply limitations keep pressure on market.
• More bidding wars.

Rents are also rising, natch. And they’re rising faster in Brooklyn than in Manhattan, another report out today from Douglas Elliman said. As The Real Deal put it: “Indeed, in the first quarter of 2013, rents in Brooklyn grew 14 percent compared to the same period a year earlier — more than double the percentage growth in Manhattan, where rents rose a not-too-shabby 5.9 percent…In Brooklyn, the median rent in March was $2,560, up 11.3 percent year-over-year.” It seems these pricing trends are having a measurable impact on where people choose to live. The Census shows that folks are moving out of Manhattan and into Brooklyn, and out of Brooklyn to the outer boroughs and suburbs, according to a story in yesterday’s Times. Makes sense.
Move Over, Hipsters! Brooklyn’s Rents Rising Twice as Fast as Manhattan’s [TRD]