More sales and rental reports were released this week, and while no two are exactly alike, they all show what we have been hearing: Closed sales and asking rents rose in Brooklyn in 2014, and the gains were dramatic in areas such as Crown Heights, Prospect Lefferts Gardens, Bushwick and Bed Stuy.
As Frank Percesepe, Corcoran’s senior regional vice president for Brooklyn put it to The Real Deal: “It’s not like people just started to buy in Bed Stuy. But this year was amazing…The prices catapulted.”
Overall, Brooklyn sales were at a record high, with median sales increasing 2.6 percent to $585,000 and average sales increasing 9.9 percent to $756,569, vs. the year earlier, according to Douglas Elliman.
Condo supply continues to be limited (new development comprised only 10 percent of sales during the 4th quarter, according to Corcoran). “This is driving large price increase in the resale condo market, particularly in recently constructed buildings” in northwest and north Brooklyn, where average condo price per square foot shot up 23 percent and 15 percent, respectively, said Corcoran’s report. “But the largest increases are occurring further afield as lack of supply has buyers expanding their searches. The neighborhoods just south of Prospect Park had a 36 percent increase in average condo price per square foot, while Bed Stuy/Crown Heights rose 64 percent.”
Overall, gains on the rental front were modest, with average asking rents increasing 3.08 percent since 2013, to $2,666.08, according to MNS. But increases in some neighborhoods were astonishing, with Boerum Hill up 15.7 percent for the year, for example.