-
-
The Brooklyn real estate market is currently in a state of recalibration as it shifts towards a more sustainable model. This shift is due to the high levels of activity seen in the market over the past decade.
-
In the fourth quarter of 2022, transaction volume dipped by 12.7% compared to the previous year and 14.3% quarter-over-quarter. The co-op market saw the most significant decline, with 21.7% fewer trades and double-digit price drops year-over-year. However, buyers have favored condos and houses in the Brooklyn market, and prices have gone up for both.
-
Despite the market's recalibration, North Brooklyn, which is comprised of Greenpoint and Williamsburg, has been a bright spot in the market, and it's the only submarket to see an uptick. This increase is likely due to the renaissance of new unique boutique buildings in the area that are scraping to the changing lifestyles with larger units. However, it is expected that the market in 2023 will continue recalibrating, with contracts signed falling 38.1% in Q4 compared to the previous year and 10.9% compared to Q3.
-
The Brooklyn real estate market is currently in a state of recalibration as it shifts towards a more sustainable model. This shift is due to the high levels of activity seen in the market over the past decade.
In the fourth quarter of 2022, transaction volume dipped by 12.7% compared to the previous year and 14.3% quarter-over-quarter. The co-op market saw the most significant decline, with 21.7% fewer trades and double-digit price drops year-over-year.
However, buyers have favored condos and houses in the Brooklyn market, and prices have gone up for both. In fact, the average house sold for $1.4 million in Q4, which is the highest price for single-family homes on record.
North Brooklyn, which is comprised of Greenpoint and Williamsburg, has been a bright spot in the market. Transaction volume there rose 4.9% compared to the previous year, making it the only submarket to see an uptick. This increase is likely due to the renaissance of new unique boutique buildings in the area that are accommodating to the changing life styles with larger units.
Despite this, the market in 2023 is expected to continue recalibrating. Contracts signed fell 38.1% in Q4 compared to the previous year and 10.9% compared to Q3. This slowdown was paired with price declines for all property types.
However, it is important to note that mortgage rates are double what they were in early 2021. Despite this, low inventory and persistent consumer demand will likely keep prices from falling too drastically. New listings were down 23.3% year-over-year and 23% compared to Q3.
It is clear that the Brooklyn real estate market is different now than in recent memory. As a result, buyers and sellers must reset their expectations if they want to transact. However, it's important to remember that the diversity of Brooklyn dwellings across price categories and the high quality of life make the southern borough uniquely qualified to weather any change in the forecast.
Inside the report:
