Good News for Brooklyn Economy: The Real Estate Boom Is Still Booming, Reports Reveal

Photo by Barbara Eldredge

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    The first-quarter reports are in and according to Douglas Elliman’s data the Brooklyn market still looks hot, with the median sales price increasing a healthy 8.4 percent over the same period last year, although it’s less than the double-digit increases of the last few quarters.

    Here are the details

    Now the median sales price rests at $662,431, as compared to last quarter’s $650,000 and $610,894 the same quarter a year earlier.

    The average sales price was $795,409, an increase of 6.2 percent over the same period a year earlier. Indeed, this quarter’s median sales prices rose to the second highest level recorded, and average sales increased to the third highest level recorded.

    The number of sales also increased by 26.9 percent year over year to 1,912. The number of sales was down 9.5 percent vs. the earlier quarter, reflecting the typically slower winter season.

    brooklyn real estate market

    Cobble Hill. Photo by Mary Hautman

    The luxury market — defined as the upper 10 percent of all sales — continued its trend of falling behind the gains made in the overall market, with median sales prices falling 1.5 percent to $1,855,520.

    As for townhouses specifically,  the median sales price was $755,000 in the first quarter, with a total of 819 sold, according to Elliman.

    The Elliman report covers all of Brooklyn.

    A separate report by Ideal Properties Group, covering only the prime areas of Brooklyn, also showed sales up but growth slowing, a finding Managing Director of Ideal Properties Group Aleksandra Scepanovic called “predictable.”

    In a third report, from Corcoran, the largest median sales price increase year over year — 30 percent, to $493,000 — occurred in the combined neighborhoods of Kensington, Windsor Terrace, Ditmas Park, Flatbush and Prospect Park South.

    Meanwhile, in Williamsburg and Greenpoint, the median price declined by 6 percent, according to Corcoran. Over in prime Brooklyn, prices are growing but more slowly: In the combined neighborhoods of Brooklyn Heights, Cobble Hill, Dumbo and Downtown, for example, the median in the first quarter stood at $900,000, an uptick of 9 percent from the same period a year ago.

    What this means
    In the fall of last year and in the 4th quarter, the price increases slowed and observers questioned whether the boom was ending. Now it looks like the market is still going strong despite some cooling off.

    The current 8.4 percent growth rate is still excellent, although it is not as high as the double-digit increases seen since 2012. (In the third quarter of 2015, for example, the median Brooklyn sales price jumped 18 percent.)

    While the news is good for sellers and the local economy overall, the slight slowing in price increases could also throw a little bit of relief to buyers. The spring market is usually the strongest of the year, so the next few months may bring another uptick.

    brooklyn real estate market

    Joralemon Street in Brooklyn Heights. Photo by Barbara Eldredge

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