Are brooklyn real estate prices falling?

Brooklyn, NY has 5,993 homes on the market. Interesting trends found in the report include the return of small retail stores in neighborhoods, which were affected during the pandemic; institutional investors who purchased multifamily housing developments; and increased commercial real estate activity in South Brooklyn compared to the expensive neighborhoods of downtown and Brooklyn in the north. Prices are unlikely to plummet, but cracks are appearing. In the four-week period ending June 26, the average sales price of newly listed homes fell 1.5 percent from its all-time high in spring and, on average, 6.5 percent of listings lowered their prices every week, according to a Redfin report.

While home prices grew a solid 19.3 percent per year in May, that figure was lower than the 20.4 percent recorded in April. The New York City real estate market is currently a buyer's market, meaning that there are approximately more active homes for sale than there are buyers. Inventory shortages and strong buyer demand continued to drive home prices higher, and multiple offers on a limited number of homes were commonplace in most market segments. Miller said that the new contracts signed and the new listings in Brooklyn were “well above pre-pandemic levels, a stark contrast to Manhattan.

Nationally, it's been a little over a year because sellers don't sell unless they have to sell, and inventory in Brooklyn is much lower, falling significantly as in the rest of the country. You could buy a small apartment building with several tenants for the cost of a single rental property in a more expensive New York housing market. The supply of homes is outpacing demand, favoring homebuyers who are managing to have a good influence on price negotiations. New York markets reflect what is happening in other parts of the country, according to data firm Black Knight, which released a report that revealed that 97 of the 100 largest real estate markets experienced a slowdown or increase in prices in the past six months.

Miller Samuel CEO Jonathan Miller lays out the bad news for real estate agents in his monthly report for Douglas Elliman, but the data simply shows what everyone has felt on the ground. The recent increase in home prices should encourage more sellers to place their properties on the market, making it easier and more likely for buyers to find their ideal home. Miller told Brownstoner that, even with the slowdown in sales compared to the rise of the pandemic era and the uncertainty surrounding what could happen next with respect to a recession, Brooklyn continues to see sales well above pre-pandemic levels and does not expect to see a drop in prices for the housing in the short term. The most recent data shows that the Brooklyn market may be less frantic but still strong, contradicting domestic trends in a cooling real estate market.

New contracts signed in the Brooklyn cooperative market fell nearly 24 percent annually, to 142 in June, from 186 at the same time last year, according to the Miller report. See the latest market trends and historic home sales prices in Manhattan, Queens, Bronx and Staten Island.

Elizabeth Leen
Elizabeth Leen

Infuriatingly humble internet evangelist. Certified zombie practitioner. Avid food guru. Typical music maven. Total problem solver.

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