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Is Brooklyn losing some of its long-standing appeal as buyers opt for discounted Manhattan properties? While Brooklyn made it through the pandemic relatively unscathed, with listings selling faster than in Manhattan, the gap appears to be starting to close. The latest weekly report from UrbanDigs notes that sales appear to slowing and there was a dip in contracts signed compared to previous weeks.
The new report, which covers the second week of November (6th-12th), shows that Brooklyn properties are now spending nearly twice as long on the market as they were during June (a median of 79 days).
It also finds the lowest number of contracts signed since early October. There were 198 contracts signed in the second week of November, compared to 231 the previous week, and 246 and 202 in prior weeks.
Listings on the market also bumped up: There were 320 new listings on the market for the second week of November, compared to 239 the previous week, and 363 and 390 in the prior weeks.
“The fall active season may be beginning to wane,” says John Walkup, COO of UrbanDigs and author of the report. “In addition, the number of listings removed from the market is the highest it has been since early October, suggesting that more sellers have decided to de-list and wait.”
This sort of pattern is typical of the end of an active season, he says. But as NYC enters a new wave of the pandemic, it remains to be seen “if any momentum can be maintained when the market starts to wind down for the holidays in a few weeks.”
Of course, this is a weekly snapshot and may be too brief a glimpse of the market to discern a trend. Or it may be the start of a pattern. Some clues may come from Brooklyn’s rental market: After a flurry of activity in October, it appears to be slowing down as well for the winter season, Walkup notes.
Renters signed more leases in the second week of November (763), an increase over the previous week (639) and prior weeks (757 and 723). Listings taken off the market have shown a sharp increase in the past two weeks (577 and 587) compared to the two prior weeks (372 and 429).
Both days on the market and price cuts are increasing in Brooklyn, suggesting buyers might be re-evaluating their options, the report notes. In Manhattan, it appears sellers are becoming increasingly realistic, with a steadier pace for days on market and deeper median price cuts.
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