Brooklyn Market at a Glance:
- 743 contracts signed
- 74 average days on market
- 1,558 homes in inventory
- $1,109 average price per square foot
Q3 | Brooklyn Market Report
Brooklyn's real estate market has been navigating some challenging conditions in recent years, and the Third Quarter of 2023 brought both signs of stabilization and continued impacts from record-high figures seen in 2022. Despite hurdles like high mortgage rates and an exceptionally low housing inventory, the market is slowly returning to pre-Covid levels, reflecting Brooklyn's enduring appeal.
In the Third Quarter of 2023, Brooklyn saw just under 1,500 closings, totaling $1.567 billion. These figures represented a significant annual decrease of over 20%. It's worth noting that these year-over-year declines were measured against the near-record highs of the previous year in 2022. One of the significant challenges the Brooklyn real estate market faces is buyer hesitancy. This was evident as contracts signed fell to their lowest third-quarter level since 2014. Buyers are adopting a "wait-and-see" approach as they carefully assess market conditions.
Low inventory has continued to persist, as an obstacle to sales in Brooklyn. Active listings have shrunk by 20% year-over-year, totaling just 1,558. This marks the eighth consecutive quarter with an annual decrease and the second lowest inventory level in nine years. From a statistical standpoint, Brooklyn's pricing showed mixed trends in the Third Quarter. Median prices increased by a modest 1% year-over-year, reaching $810,000. This increase can be attributed to a shift in the distribution of sales by price point and product type.
In summary, Brooklyn's real estate market faced significant challenges in the Third Quarter of 2023, including high mortgage rates, low inventory, and buyer hesitancy. However, it's essential to consider these factors within the context of the record-high figures of the previous year. Despite the slowdown in sales, Brooklyn remains a sought-after market, and the increase in new development sales is driving up property prices in the high-end segment.
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