Brooklyn median sales price passes $1 million for the first time
- Queens listings were down 23.9 percent in the third quarter per the Elliman Report
The median sales price in Brooklyn was $1,050,000 in the third quarter, according to the latest edition of the Elliman Report.
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Median and average sales prices in Brooklyn and Queens reached new records in the third quarter, fed by increases in sales.
Brooklyn’s median sales price crossed the $1 million mark for the first time. It rose 7.7 percent to $1,050,000 compared to the third quarter of 2024, according to the latest edition of the Elliman Report, which covered co-op, condo, and one-to-three family house sales for Brooklyn and Queens.
The number of deals increased for the fourth time, surging by 7.1 percent and total listings were up 16.3 percent versus the year-ago quarter. New condo listings however were down 24.7 percent.
All-cash deals represented nearly half of sales, wrote Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report.
In Queens, a decline in listings curbed deals, Miller wrote. Inventory has been declining on an annual basis since early 2023, he said. Listings were down 23.9 percent in the third quarter.
The median sales price in Queens increased 2.1 percent to $730,000 compared to a year ago. Sales were down by 1.6 percent annually.
Buyers meet the ‘mansion’ tax
Although many properties sell for $1 million or higher in Brooklyn, now that the median price has surpassed that threshold, it means a lot more Brooklyn buyers are facing an additional one-time cost when they close.
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.
Interest in smaller residences
Corcoran's Brooklyn market report noted that buyers returned in the third quarter despite economic uncertainty and a steep drop in new development listings.
“While inventory remains tight, we’re seeing meaningful movement in more affordable segments and smaller residences,” said Michael Sorrentino, senior vice president and general sales manager for New York at The Corcoran Group.
New condo projects start closings
Sales and prices in Brooklyn were boosted in the third quarter as a result of multiple new projects that began closing units, said Coury Napier, director of research at SERHANT in his firm’s market report.
"Even as broader economic factors create friction, the borough’s depth of product and appeal to a wide buyer base continue to drive meaningful growth,” he wrote.
Brown Harris Stevens also released third quarter sales market reports for Brooklyn and Queens.
Bess Freedman, CEO at Brown Harris Stevens, noted a rising stock market and lower mortgage rates helped fuel annual increases in deals as well as average and median prices in both Queens and Brooklyn.
In its Brooklyn sales market report, Compass noted that closings for houses $3 million and higher increased by 47 percent, “indicating significant demand for abundant space in desirable neighborhoods.”
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