📈 Q2 BROOKLYN MARKET REPORT ANALYSIS 🧐
The Compass report highlights the prevailing trends shaping the market and Javier and Thomas will go through it: average days on market, contracts signed, and more! Watch video and report in our website 📲
"Overall, Brooklyn is a beacon of hope. It offers cultural attractions, diversified abodes of all sizes and price points, and an unrivaled aura of inevitable success. While the market is different than it has been in recent quarters, some new opportunities are suddenly possible. For instance, sellers now may be more willing to negotiate on price--a benefit for buyers allowing the market y mirror what it has traditionally been more closely."
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Transcript:
hello how are you guys this is Javier the co-founder of the Thrive Real Estate Team at Compass and as usual this week I am joined here by my co-founder Thomas also of Compass i'm wearing a little bit of swag today because it's a thousand degrees out and i don't want to wear a button down it's crazy we don't like i don't like summer i don't know about the rest of the people i think Thomas does like so much i love summer what are we talking about this week Thomas we are going to talk about the beach and how nice it is to be tan and also maybe we should talk about Brooklyn let's talk about the quarter the second quarter Brooklyn market day and your time so Brooklyn q2 Brooking yes what are we seeing what's happening what do you have in front of you what does that data tell us so i think what is most interesting about these Brooklyn numbers are a couple of things 17 of properties sat on market for over 180 days which is a lot it is considering that like Brooklyn was essentially on fire like you could not go into a condo a home a co-op without a line at the door and multiple offer situation so the fact that seventeen percent of property sat on market for six months tells you that there was a limit to what people would spend because the only reason a property wouldn't sell is it was priced too much right because at the end of the day the buyers are the ones that set the price of their apartment right so for instance i have a unit that i priced at uh 700 000 we got accepted offer 757 right so probably that's not Brookly though no but the same thing is true if a property is properly priced it will sell and it will sell for more yeah absolutely so buyers in Brooklyn are looking for value right like they're looking for value they're looking for space they don't really mind spending good money properties in Brooklyn go for a lot of money yeah if they see the value in it your average price per square foot in Brooklyn this this last quarter was 905 dollars compared to our average per square foot in Manhattan which was if i remember correctly 1300 Brooklyn buyers are looking for value that said our average sales price was high it was 1.261 million dollars that's your average when your medium was 975 thousand dollars so it didn't even hit that million those are still high prices when we're looking at a medium and an average in terms of that's that was year over year the average went up 13.1 according to my notes here and that's a lot right like in a in a year's time i think that's pushed up a little bit by the luxury market in Brooklyn absolutely picked up somewhat since since the last six months or so so that that certainly helps and a lot of this recorded sales number most of them are from the Q1 deals that got signed and some of them are from Q4 2021 deals that get signed so we're looking backwards into the data here now if we talk about contract signs when we look at country signs this period we had 21 less contract signs this quarter than we had last quarter that similar story to manhattan Manhattan was 23.4 below the the year before the key here though is that the inventory in Brooklyn is not growing the inventory in Brooklyn is actually shrinking less sellers are coming to market so for a buyer it doesn't feel like there's less activity you're still seeing just a handful of properties that fit your criteria in Brooklyn so that's good for sellers who are priced accordingly right the sellers that are trying to get too much for their property that we have to remember interest rates have gone up so much in the last three months alone let along the beginning of the year uh so your buyer under a million it's it's getting hurt for them those dollars count more than for the buyer who's buying three million five million dollar uh property so that that certainly slows down that pace of the under million under two million buyer we i actually have two buyers who's stopped their search altogether in the last week and a half because when they look at their numbers it stops making sense assuming assuming well these buyers don't have to rent right away if you were competing against rents yeah rents in Brooklyn are just as high as in Manhattan in some cases more and it still makes more sense to buy even at this interest rate which is historically not high it's just higher to what we had less well in the interest rates really aren't that high you know the average for uh is about five percent for something you would buy in Brooklyn you know if you're looking at your conforming loans if your non-conforming loans are gonna be like six percent um but it's you know especially if you wanna buy in you know Fort Greene Williamsburg
those condos are all gonna be one five and up right yeah ones that are priced at one five and one six are going for nearly two so you know it's important to remember that uh so we did a deal for instance at 4 south Portland right we purchased it for one nine we listed it for rent at six thousand and the final rent on it was seventy one hundred so that kind of gives you an idea of what the rental market is doing so if you think that you're going to save money by not purchasing now that may not be accurate because sure you're going to pay another point in your interest rate but you're also paying an extra 30 on renting an apartment unless you're sitting in a rental that is very cheap if you're sitting on rental and you don't have to move it might make more sense staying in the rental what other good points do we have here from the data our medium price and so this is another interesting one or medium price of the contract sign year to date is up 1.5 so that's that's healthy it's doing good but when you look at it quarter or a quarter it's actually down 4.3 and and that that can be a little bit of seasonality summer is a little slower than other times of the of the year like fall or spring but 4.3 is a substantial amount in your average sales price comparison to the in comparison to the quarter before i think interest rates have a lot to do with this suppliers having to uh really just lower their budgets and going for other units that they would have gone they would have not gone for before or sellers adjusting their expectations and price the reality is that if you're a seller and you really need to sell you have to adjust ahead of the market and not chase the market down because that's the worst position to be at the sellers who are doing that are getting their property sold another good information to have here our average discount is the lowest it has been since 2017 which is three percent what tells me is that the properties that are going under contract are actually priced accordingly right or as close as accordingly three percent is very very tiny uh discount average in listings so that's it that's good news for sellers and for buyers looking for a fair market value in Brooklyn apparently we're trading at a fair market value you know another thing that's really driving the Brooklyn market is going to be the sales of standalone houses yes um they took 43.8 of the market last year over the last quarter yeah almost half of the sales are our houses and townhouses so this include anything that's for families and down anything that's five families and up is a commercial property we don't have that in that data but your single families your two families your three families those are incredibly common in Brooklyn south Brooklyn a lot of them are single families and east Brooklyn also a lot of single families and two families also northwest northwest yeah northwest the inventory ratio because it's a little less than it's in the other areas but yeah northwest has tons of two and three families there and what are the names where we had the most contracts signed is that Caroll Hill, Park Slope yeah and Brooklyn Heights so northwest Brooklyn that's where most of the contracts happen so that's why i say those properties are those are some of the most expensive neighborhoods yeah in Brooklyn Williamsburg and Greenpoint are there with it too but but in that northwest Brooklyn as a whole incredibly expensive in comparison to the rest of Brooklyn that is where most contracts happen that's what bringing that average price out not that all properties are really in average we have to look at the medium to understand where where the half of the market is if we look at the average then that's pushed up by these more expensive properties by these townhouses and two families in those areas um yeah i think it's a good time to be a buyer actually because even though there's less inventory uh there are also less buyers looking a lot of people have a lot of buyers have gotten price out of the market yeah yeah they have taken a break for whatever reason they're exhausted too i know people have been looking for months and they have been outbid many times and they're done and they're like that i need to take a break from this so what else and nothing else i think i think that's it that's Brooklyn Q2 i thank you for watching share it with anybody who you know might need this information click a like whatever else you need to do in whichever platform you're watching this sure and reach out if you have any questions any suggestions would love to hear it are we hiring Thomas? we are hiring as a matter of fact boom so you know anybody who wants to get into real estate or somebody who has some real estate talents and have mean talents we would love to chat we're looking for somebody to come into the team and help us grow more and service New York in a higher and better way take care
