Stable Prices Mask Crazy Year for Brooklyn Real Estate Sales

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The median price in Brooklyn increased less than half a percent in 2013, going from $458,000 to $460,000. But that sleep-inducing overall number doesn’t tell the whole story: Prices in some neighborhoods increased dramatically. Carroll Gardens, for example, was up 43 percent in the year, to $985,000, making it now the borough’s most expensive area, The Daily News reported.

“Don’t believe the hype” about escalating prices, said the story. “In the prime areas, there’s just nothing to buy, and that’s really holding down prices,” the story quoted Corcoran broker James Cornell as saying. In Cobble Hill, prices were down 29 percent, to $537,000, because “nothing was for sale,” said the Daily News. Sales were up in Carroll Gardens was because there were so many new developments on the market.

Greenpoint followed in second place with an increase of 38 percent to $665,000. Prices were also up dramatically in East New York, by 38 percent, to $355,000. The News said buyers appeared to be “speculators.” The explanation from MNS CEO Andrew Barrocas: “The L train is lined with gold.”

Prices fell in Ditmas Park and Kensington and some Sandy-ravaged areas such as Gerritsen Beach. Coney Island and Brighton Beach improved slightly.

Stable Real Estate Prices Hide Big Changes in Many City Neighborhoods [NY Daily News]

8 Comment

  • “Prices fell in Ditmas Park and Kensington and some Sandy-ravaged areas such as Gerritsen Beach. Coney Island and Brighton Beach improved slightly.”

    I am looking at the map in the Daily News right now. The median price change in Ditmas Park was +9% and in Brighton Beach it was +17%.

    • Cate

      The story says “A pair of newly popular neighborhoods that saw prices fall were Kensington and Ditmas Park, down 4% and 17%, to $250,000 and $375,000…But Coney Island and Brighton Beach began bouncing back. Prices in the heart of the peninsula rose 4% to $300,000 from $288,000.”

      • So it does. I don’t know what the author of that story was looking at, but it doesn’t appear to be the map featured in the article.

        • Cate

          I can’t access those parts of the map, so I’m not sure.

          • I think part of the problem is that the map is oriented around zip codes, rather than what most of us recognize as neighborhoods. However, even that isn’t all of the problem, as the zip code boundaries present in the map do not agree with the boundaries in the corresponding US Postal Service map. I fear that something went dreadfully wrong with this Daily News “analysis”.

    • mildredfierce

      The conclusion that prices fell in Ditmas Park over the past year is absolute rubbish. Every time a unit sells in my building – or any other co-op building in the area – it is for more than the comparable one before it. Lather, rinse, repeat.

  • “In the prime areas, there’s just nothing to buy, and that’s really holding down prices”

    Yeah, like in Cobble Hill where a one floor renovated garden level apartment just closed for over 1.5M. Thats one floor….in a brownstone…selling for over 1.5M.

  • old_myrt

    Should an analysis like this be done in $/sq. ft? For example a condo conversion could be seen as a decrease in median sale price, but a pretty big bump in $/sq . ft.