BROOKLYN, NY - Stribling & Associates, a leading New York residential brokerage today releases the first quarter 2018 Brooklyn Market Report. The report is the only to cover inventory, contracts and sales. It revealed a slowdown in the total number of closings, and multiple price records set across the borough.
"We saw a slight slowdown in the sales pace during the first quarter of the year, not dissimilar to the Manhattan market," said Garrett Derderian, Director of Data & Reporting at Stribling. "However, the pace of new construction throughout Brooklyn and appreciation in the outer submarkets continued to push prices, resulting in borough-wide median price record of $780,000."
According to the report, condo units were the only property type to experience a median and average price decline, down 6% to $850,000 and down 15% to $1,021,180, respectively. However, all property types noted drops in the average price per square foot, with condo units down 7%, the most of any property type, to $1,030/SF.
"The slowdown in new development closings had some impact on pricing, especially in Northwest Brooklyn, the only market not to achieve an average or median sale price record," Derderian highlighted. "Notably, the borough-wide median price record was not driven by development in the North and Northwest submarkets, but by South Brooklyn, where there has been tremendous price growth over the past several quarters." Mr. Derderian advised the average yearly price-per-square-foot increases in South Brooklyn were the highest for sales, contracts, and inventory.
Despite the sales price records contract prices in North Brooklyn were the only area to log median and average price declines, due in part to the upcoming L-train shutdown, as sellers move to exit the market.
Declining costs were also evident for North Brooklyn inventory, where the average PPSF fell 9%, significantly more than any other submarket. Interestingly, this market saw a gain in its median and average listing prices, due to a 26% increase in average unit size. Derderian assured, "North Brooklyn remains a strong market. There are many new developments under construction and demand remains strong. We see this as a buying opportunity."
The report also noted first quarter closings under $500K were at their lowest Q1-level to date, capturing 24% of the total market. There were considerably more closings above $1M, with 30%, than below $500K.
Derderian also forecast Northwest Brooklyn should see price improvements in the coming quarters: "While much of the waterfront has been developed, Downtown Brooklyn and Boerum Hill are poised for tremendous growth." At the end of the first quarter, Extell launched its first Brooklyn condo tower, Brooklyn Point, where prices will reach approximately $3.5 million. Nearby, JDS is developing 9 DeKalb Avenue, and at 1,066 feet, it is the first supertall in the borough. Tishman Speyer also recently unveiled designs for its 51-story ground-up condo building at 11 Hoyt Street.
Highlights from Stribling & Associates 1Q Brooklyn Market Report:
- Median sales price was $780,000, up 4% year-over-year
- Average sales price was $969,935, down 1% year-over-year
- Average price per square foot was $847, down 6% year-over-year
- Average days on market was 115, slightly up from 107 one year ago
- There are 5.3 months of supply, down from 5.6 one year ago
Recorded Sales:
- There were 2,178 recorded sales to date, down 10% from one year ago
- Condo units saw an average PPSF of $1,030
- Condos had the highest median price at $850,000
- Co-op units had a median price of $428,211
- Properties sold between $500K-1M made up 45% of all closings
- 7% of closings were priced above $2M
- North Brooklyn had a median price of $999,000 and an average price of $1,184,497 (records)
- East Brooklyn had a median price of $730,000 and an average price of $822,070 (records)
- South Brooklyn has a median price of $655,000 and an average price of $774,484 (records)
Contracts Signed:
- There were 1,531 contracts signed, 7% more than one year ago
- Condos made up 44% of all contracts
- Condos recorded the highest average PPSF at $1,018
- Townhouses/houses has the highest median price at $1,199,000
- Units priced above $3M saw the median price decline of 2% and average drop of 5%
- North Brooklyn saw all price metrics decline, and a size increase
- South Brooklyn had the largest price increases with the median up 18% and average up 11%, and average PPSF up 15%
- Northwest Brooklyn had the most expensive contracts signed with a median price of $1,295,000 and average of $1,699,242
Inventory:
- There were 3,215 active units in the borough, a 21% increase year-over-year
- Condos made up 30% of inventory
- Condo units had the highest average PPSF at $1,003
- Co-op units were the most affordable, with an average PPSF of $601
- There was more inventory priced between $1-2M (32%) than below $500K (17%)
- 38% of inventory was priced between $500K-1M
- No submarket had average or median price declines
- South Brooklyn was the only market with an average asking PPSF increase, up 4% to $606
- All markets saw increases in unit size
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout three locations in Manhattan and one in Brooklyn. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.