Pending sales in Brooklyn are on the uptrend, but it's a narrow one.
The Brooklyn real estate market has been experiencing slow growth and low inventory levels. Despite some uptrends, the market seems to be lagging behind other areas, such as Manhattan. In this blog post, we will delve into the trends and factors that are driving the Brooklyn real estate market and what buyers and sellers can expect in the coming months.
Supply and Demand: The Key Drivers of the Brooklyn Real Estate Market
One of the main factors driving the Brooklyn real estate market is the balance between supply and demand. As of late, the market has been experiencing a low inventory period, which is slowing down sales. Brooklyn is still in a net deficit on a 30-day basis, which is muting any downturn, but the story really lies in the demand side.
On the demand side, pending sales are up, and the market pulse is at 0.51, which is higher than the 0.39 in Manhattan. However, the uptrend is narrow, and the market needs more inventory to work.
Brooklyn Supply: Slow but Steady
The supply in Brooklyn has been increasing slowly but steadily, with 219 new listings coming onto the market in the last seven days. This number is the highest seen since October of last year. However, it is still below the low inventory period of 2021-2022.
Contract signs have also been increasing, but they seem to have stalled out in recent weeks, with moderate levels of deal volume.
Brooklyn vs. Manhattan: Lagging Behind?
Brooklyn seems to be lagging behind Manhattan in terms of recovery time, as seen in the year-over-year change chart. Brooklyn was outpacing Manhattan for a while, but the trend seems to have shifted. The reasons for this shift are unclear, but it could be due to a paradigm shift in the works or what may be happening with Brooklyn buyers.
However, it is important to note that the lack of fresh supply hitting the market is a key factor in Brooklyn's slower recovery time. If you are a buyer, there may not be much to choose from, which limits your leverage.
What Does the Future Hold for the Brooklyn Real Estate Market?
The Brooklyn real estate market is expected to remain a buyer's market for the time being, with sellers having a better situation and leverage advantage. However, the market is starting to shift, and the uptrends in pending sales and supply are positive indicators.
In the coming months, we can expect to see more inventory coming onto the market, which will help balance the supply and demand dynamics. If the supply continues to increase, we could see a shift towards a more balanced market in the near future.
The Brooklyn real estate market is experiencing slow growth and low inventory levels, which is limiting sales. However, the market is slowly but steadily starting to shift, with more inventory coming onto the market and uptrends in pending sales. While it may remain a buyer's market for the time being, the future looks positive for the Brooklyn real estate market.
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