Average price of apartments in Brooklyn hits record high of $990,000

Average price of apartments in Brooklyn hits record high of 0,000

Co-op and condo prices in Brooklyn hit record highs in the second quarter, even as sales fell again.

The average sales price for apartments in Brooklyn rose to $990,000 in the second quarter, the highest price tag ever, according to the latest Elliman report.

Higher condo prices drove that increase, with the median sales price for a condo in the neighborhood rising by $14.3 million to nearly $1.1 million from last year — another record high. Meanwhile, the median price of a Brooklyn co-op fell 8 percent to $515,000.

Potential buyers may not be happy with a higher average price, but there was also good(er) news.

While buyers closed 2,415 deals in the second quarter, down slightly from 4.9 percent in the same period last year, they also found more options. Listing inventory rose 14.5 percent amid slower sales, the first time in more than two years that the number of available condos has increased, according to the Elliman report.

But Brooklyn still faces severe supply constraints, said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report.

“One data point doesn’t make a trend,” Miller said. “Inventory has been a challenge in Brooklyn for a long time.”

Those slower sales and higher inventory meant that it took 20 percent longer for sellers to sell their apartments, or about 4.2 months. Bidding wars also fell slightly: 18.6 percent of deals saw bidding wars in the second quarter, compared to 20.2 percent in the same quarter last year, according to the Elliman Report.

A neighborhood with ‘mixed signals’

The Brooklyn sales market showed “mixed signals” in the second quarter, according to Corcoran’s second-quarter sales report. Despite higher prices, the number of contracts declined, indicating that higher mortgage rates and tight inventory continue to weigh on sales.

“Locks, sales volume, inventory and prices all increased from a year ago,” the Corcoran report said. “At the same time, the number of signed contracts declined and marketing times increased under the weight of high mortgage rates, rising prices and tight supply in the most desirable parts of the neighborhood.”

High mortgage rates, combined with low supply, have hampered the New York City sales market for several quarters. This has scared off both buyers and sellers, who are stuck with rates in the 3 percent to 4 percent range and are reluctant to sell if it means taking on a 7 percent loan.

“Sales have been subdued in all five boroughs and nationwide as mortgage rates have seen their steepest rise in 50 years,” Miller said. “Limited supply, lower affordability and fewer listings have limited sales levels. Until rates start to come down, I don’t think sales levels will change much.”

According to the Elliman report, cash buyers continued to dominate Brooklyn condo sales in the second quarter, accounting for 42.8 percent of the market. The number of cash sales increased 7.9 percent compared to the second quarter of 2023, while the number of financed sales fell 12.7 percent over the same period.

Williamsburg and Greenpoint See Big Sales

North Brooklyn “performed the best in signed contracts and substantial price increases,” said Coury Napier, director of research for Serhant. The median price of a unit in North Brooklyn rose 17.1 percent from the same period last year to $1.39 million, according to Serhant’s second-quarter report.

According to Compass’ market report, trendy Williamsburg and Greenpoint neighborhoods saw an increase in sales in the second quarter, particularly in new developments.

According to Compass, sales in the area rose 34.3 percent in the second quarter compared to the same period last year. Condos in the $2 million price range accounted for the largest share of signed contracts.

Queens sees slightly higher sales

According to the Compass report, the number of sales in Queens increased 1.3 percent from the same quarter a year earlier, to 3,678.

According to Compass’ report, the number of properties priced under $750,000 fell in the past quarter compared to the previous year, indicating that buyers are increasingly looking for affordable properties.

At the same time, sales of apartments in the area fell by 16.6 percent compared to the previous year.