Median sales price for Brooklyn condos jumped to $1.49 million in the second quarter
- Demand for luxury condos ‘the driving force’ behind the Brooklyn sales market
Brooklyn is “holding close to prior-year levels despite a slight dip in signed contracts compared to the same period last year,” said Richard Ferrari of Douglas Elliman.
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The Brooklyn sales market in the second quarter saw a robust increase in transactions and median sales price fueled by demand for luxury and larger properties.
Deals for co-ops, condos, and one- to three-family houses rose 5.9 percent compared to the year-ago quarter and the median sales price for all three types of properties rose 4.1 percent annually to $1.36 million, according to a new report from Douglas Elliman.
All price metrics for condos increased, including the median sales price of $1.49 million, an annual jump of 14.8 percent. The median sales price for co-ops declined 3 percent year over year to $728,000 and ticked up 0.2 percent to $2.1 million for one- to three-family houses.
Contract activity, an early indicator of where sales are headed, was nearly on par with last year.
Brooklyn is “holding close to prior-year levels despite a slight dip in signed contracts compared to the same period last year,” said Richard Ferrari, president and CEO of brokerage, New York City and the northeast region of Douglas Elliman. Signed contracts declined slightly on an annual basis (down 0.7 percent) but climbed 33.9 percent quarter over quarter, driven by strong demand for luxury and family-sized homes, Ferrari said.
A faster market
Days on market in the second quarter fell to 72 days, according to Corcoran’s Brooklyn sales market report for co-ops and condos. It was the fastest second-quarter pace in a decade and an indication “well-priced listings are still moving quickly,” said Michael Sorrentino, senior vice president and general sales manager for New York at The Corcoran Group.
Compared to last year, days on market decreased in all price segments except over $2 million, which reported a 3 percent increase, as per Corcoran’s report. The $750,000 to $1 million segment had the largest percentage decline and the shortest average marketing time, down 27 percent to 49 days, as buyers felt pressure to make a move in a price range that remains in high demand.
The under $350,000 segment averaged 118 days on market, four days fewer than a year ago, yet still the slowest-moving price category, the report said.
Condo deals: ‘The driving force’
A second quarter sales market report from Compass said Brooklyn condos “remained the driving force behind the market,” with deals rising 7.2 percent year over year and accounting for 35.3 percent of all Brooklyn closings.
Activity was particularly robust for luxury condo closings above $3 million, which surged 32.1 percent. Transactions in the $2 million–$3 million bracket were up 8.9 percent year over year, as per Compass.
Compass also released a report for the Queens sales market, which noted closed sales increased 4.1 percent year over year in the second quarter, representing just over half of all transactions, while contract activity climbed 13.3 percent.
Houses were the standout in the Queens market, with 1,979 sales, up 4.1 percent year over year, accounting for just over half the market at a 50.4 percent share. The $750,000–$1 million bracket, which represents 38.9 percent of house sales, grew 10 percent year over year
Sales of Queens three-bedroom houses rose 7.5 percent and four-plus-bedroom sales rose 8.6 percent, with the four-plus-bedroom median price up 10.6 percent, according to Compass
More new development inventory
After shrinking for 18 months, Brooklyn new development total inventory expanded for the second consecutive quarter, with 331 new sponsor residences launched in the second quarter, as per a report from Brown Harris Stevens Development Marketing. This expanded the new development total to 1,585 units.
This is good news for Brooklyn buyers, said Robin Schneiderman, managing director at BHSDM. “It means more options and more opportunity in a market that has been lacking new product,” she said.
The closing price per square foot for Brooklyn new development in the second quarter was $1,370, on par with the year ago quarter, the report said.
