Brooklyn Townhouse Prices Continue to Rise Even as Fewer Change Hands

Photo by Barbara Eldredge

    by
    1

    Brooklyn’s townhouse market is looking strong as sales prices continue to rise, even in the face of a cooling market for overall sales activity, a recent report indicated.

    The average price per square foot was $774 in 2016, vs. $740 in 2015, an increase of 5 percent, according to Corcoran’s first-ever standalone Brooklyn townhouse report. The median price of a townhouse jumped from $1.6 million in 2015 to $1.75 million in 2016, an increase of 9 percent, and the average sale price rose 1 percent in the year to $2,064,243.

    brooklyn real estate corcoran market report

    Graphic by Corcoran

    The study covered north and northwest Brooklyn as well as Crown Heights, Bed Stuy, and Bushwick.

    The actual number of townhouses sold was down 5 percent, from 785 in 2015 to 742 in 2016.

    “The Brooklyn townhouse market is more diverse, more sprawling, and more active than its counterpart in Manhattan,” said Corcoran broker Patricia Laligant in an email accompanying the report. “In fact, twice as many houses sell in Brooklyn annually than are traded in any other borough.”

    brooklyn real estate corcoran market

    31 Garden Place. Photo by Corcoran

    In 2016, nearly half (47 percent) of sales fell in the $1 million to $2 million dollar range.

    In terms of location, sales activity increased in Bed Stuy, Crown Heights and Bushwick, which maintained over 40 percent of the market share and was the most active area in the study.

    The average price per square foot in Bed Stuy, Crown Heights and Bushwick jumped 12 percent to $495 in 2016.

    Bed Stuy saw a ton of flipping in 2015. “In rapid succession, hundreds of all-cash deals priced under $500,000 occurred. A few months later, many of them resold for slightly higher prices to other investors coming later to the game, then sold again for well over $1 million after upgrades were made,” said the report.

    The number of sales declined in Brooklyn Heights, Cobble Hill, Downtown Brooklyn and Dumbo. There were only 12 townhouse sales in those areas in 2016, vs. 32 sales the year before, a drop of 62 percent. Price per square foot was up 15 percent to $1,552, however.

    brooklyn real estate corcoran market report

    Number of townhouse sales by region. Graphic by Corcoran

    The study differentiated between single-family and multi-family residences. Single-families dropped in both median price and the number of closings, but price per square foot rose 5 percent from $1,130 to $1,181.

    In multi-family homes, closings were down 6 percent against the same period in 2015. However, price per square foot and median price both rose, with median price hiking over 10 percent.

    While sales for multi-family homes were either flat or on the decline in most areas of the borough, single-family home sales were up in Williamsburg, Greenpoint, Carroll Gardens, Red Hook and Bed Stuy, among other neighborhoods.

    Related Stories

    Email tips@brownstoner.com with further comments, questions or tips. Follow Brownstoner on Twitter and Instagram, and like us on Facebook.

    Brooklyn in Your Inbox

    * indicates required
     
    Subscribe

    What's Happening