Median sales price in Brooklyn climbs to $995,000 in the second quarter
- A significant drop in listings helped drive prices to new highs in Queens even though sales fell
Brooklyn’s median sales price is approaching $1 million, which is when the mansion tax kicks in no matter the size of the property.
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Brooklyn’s median sales price continued to flirt with the $1 million mark amid rising sales in the second quarter.
Both the median and average sales prices in the borough reached new highs for the second consecutive quarter according to the latest editions of the Elliman Report, which covers co-op, condo, and one-to-three family house sales for Brooklyn and Queens.
The median sales price in Brooklyn rose half a percent in the second quarter to $995,000 from $990,000 in the second quarter of 2024. It was unchanged from the first quarter.
When the mansion tax kicks in
While many properties sell for $1 million or higher in Brooklyn, if the median price hits that threshold, it means a lot more Brooklyn buyers are facing an additional cost.
That’s because the mansion tax kicks in when you buy a New York City apartment or single-family house for $1 million or more, no matter the size of the property.
The fee starts at 1 percent of the sales price and rises in increments to 4.15 percent on sales of $25 million-plus.
Brooklyn sales increased for the third time, rising 0.5 percent in the second quarter. Listings were up annually for the fifth time, also climbing by 0.5 percent, as per the Elliman Report.
The ‘days on market’ debate
Days on market were down 13.8 percent annually for Brooklyn—a sign that properties are selling faster. For individual properties, days on market can signal whether a listing is fresh or stale and buyers will often adjust their offers accordingly.
That metric is part of a major debate over private listings spurred by Compass's new, three-phase strategy for sellers. The strategy begins with listing properties privately and doesn’t show days on market to buyers to level the playing field for sellers, a Compass company spokesperson previously told Brick.
The problem with this strategy is that “a seller may accept an offer and not realize only three people saw the listing and the buyer didn’t know how long the property has on the market so they feel like they overpaid or undersold,” said Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the Elliman Report.
Queens listings plunge but prices rise
A significant drop in listings helped drive prices to new highs in Queens, even though sales fell in the second quarter, according to the Elliman Report.
The average sales price hit a new high, rising 4.5 percent to $771,441. The median sales price increased 4.1 percent to $714,383.
Sales were down by 7.1 percent compared to the year-ago quarter and listings were down by a significant 30 percent.
A premium for one- to three-family houses in Queens
In his firm's Brooklyn sales market report, Brown Harris Stevens chief economist Gregory Heym noted that “fewer new development closings lowered the average prices in Downtown Brooklyn.”
For the firm’s Queens sales market report, Heym said the average price of a one- to three-family home crossed the $1 million mark for the first time at a record $1,013,558. (The Elliman Report, which primarily relies on ACRIS, said it rose to $978,998.)
A tumultuous geopolitical period
The second quarter was a tumultuous geopolitical period marked by President Donald Trump’s new tariffs, which hurt the stock market in early April, and the U.S. bombing of three Iranian nuclear sites.
"Brooklyn's real estate market started the second quarter with solid momentum, but as economic and political uncertainty grew, activity naturally began to cool,” said Michael Sorrentino, senior vice president and general sales manager for New York at The Corcoran Group, which also released a second quarter sales market report for Brooklyn.
“Even with fewer new development sales and tighter inventory, Brooklyn's average price held near historic highs, underscoring the market's resilience,” Sorrentino said.
Brooklyn co-ops ‘performed the best’
Compass also released second quarter market reports for Brooklyn and Queens, noting that sales of “co-ops interestingly performed the best, although they have the lowest market share [in Brooklyn], seeing 12.5 percent more sales at notably higher median and average prices than this time last year.”
Condos in Queens “fared the best with a 20.3 percent year-over-year jump in closings,” Compass said.
New development sales drop
Brooklyn’s new development market faced a slowdown in activity during the second quarter, as both sales and signed contracts fell amid a 10.2 percent drop in new listings, according to SERHANT’s second quarter sales market reports for Brooklyn and Long Island City.
“Activity tapered off as the market moved closer to summer and deeper into the season, aligning with economic volatility and heightened global uncertainty,” said Cory Napier, director of research.
The report said that total new development inventory climbed 15.1 percent year over year, driven by older sponsor units remaining on the market.
The Long Island City’s condo market saw an increase in sales and contract activity amid falling prices, as per SERHANT.
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