Real Estate

Brooklyn’s Boomtown Markets Hit Record $1M Median Sales Price in Q2

Brooklyn's median sales price hits nearly $1M in Q2, driven by 62% rise in North Brooklyn condo sales.

By Tal Alexander

7/11, 09:03 EDT
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Key Takeaway

  • Brooklyn's median sales price hit a record high, nearing $1 million, driven by low inventory and strong demand in North Brooklyn.
  • Condo sales in Greenpoint and Williamsburg surged 62% year-over-year, with median prices rising 33% to $1.3 million.
  • Despite overall sales growth of 4.6%, borough-wide contracts fell 11.5%, marking the ninth consecutive quarterly decline.

Brooklyn's Record-Breaking Sales Quarter

Brooklyn has achieved an all-time high median sales price in the second quarter, driven by pent-up demand and limited inventory in its most sought-after neighborhoods. According to a report by Compass, the borough's inventory fell by 7.6 percent year-over-year, pushing the median sales price to nearly $1 million. This surge is primarily attributed to the high demand for North Brooklyn condos, particularly in Williamsburg and Greenpoint, where new development sales have been robust. Compass agent Lior Barak noted that first-time buyers are particularly drawn to these areas, with condo sales in Greenpoint and Williamsburg rising by over 62 percent year-over-year.

The Driving Forces Behind the Surge

The significant increase in Brooklyn's median sales price is largely due to the activity in Williamsburg and Greenpoint. New development sales have been a major driver, with developers filing 230 condo plans in Greenpoint in 2022 alone. This influx of new developments has led to a 33 percent year-over-year rise in the median price of condos in these neighborhoods, reaching $1.3 million. The demand is further fueled by buyers seeking homes with amenities and services that match their investment, as highlighted in the Compass report. This trend has led to an overall sales increase of 4.6 percent year-over-year in North Brooklyn, despite a decline in other parts of the borough.

Brooklyn's Broader Market Dynamics

While North Brooklyn has seen a surge in condo sales, the overall market dynamics in Brooklyn present a mixed picture. Contracts across the borough fell by 11.5 percent year-over-year, marking the ninth consecutive quarterly decline. Condos experienced the largest drop, with a 16.6 percent decrease in contracts, while houses saw a smaller decline of 4.6 percent. This discrepancy between sales and contracts is partly due to the longer closing times for new developments compared to resales. Interestingly, the $2 to $3 million market segment saw a year-over-year increase in listings, reaching a record 22.5 percent inventory market share, contrasting with the overall low inventory trend.

Insights from the Luxury Market

The luxury market in Brooklyn, particularly townhouses, continues to perform strongly. According to a recent report by Compass, townhouses have dominated the luxury market, with the four most expensive contracts in Brooklyn being townhouses for two consecutive weeks. The priciest contract last week was a townhouse at 11 South Oxford Street, listed at $7.5 million. This trend underscores the continued demand for high-end properties in Brooklyn, even as the broader market faces challenges. The median asking price for luxury properties has also increased, reaching $2.75 million, up from $2.5 million year-over-year.

My Perspective on Brooklyn's Market Trends

The recent developments in Brooklyn's real estate market highlight a complex interplay of factors driving prices and sales. The surge in North Brooklyn's condo market is a testament to the area's appeal to first-time buyers and the impact of new developments. However, the broader market's decline in contracts and the mixed performance across different segments suggest underlying challenges. The luxury market's resilience, particularly in townhouses, indicates a continued appetite for high-end properties. As Brooklyn navigates these dynamics, it will be crucial to monitor how inventory levels and buyer preferences evolve, especially in the face of economic uncertainties and interest rate fluctuations.

Street Views

  • Lior Barak, Compass (Bullish on North Brooklyn real estate market):

    "Demand for first-time buyers is greater in North Brooklyn than other areas."

  • Lior Barak, Compass (Bullish on Greenpoint and Williamsburg condo sales):

    "The activity in Williamsburg and Greenpoint has been driven by new development sales... Many of the closed condos in the second quarter were from new developments that had been on the market since 2021 or 2022."