Brooklyn Real Estate Market Report – Q4 2024
As we close out 2024, Brooklyn’s real estate market continues to show resilience and transformation, with buyers adjusting to mortgage rates and engaging in transactions. While inventory remains a challenge, the borough has seen an increase in sales activity, particularly in the house and condo markets. Here’s a closer look at Brooklyn’s Q4 market trends and what they mean for buyers, sellers, and investors.
Market Overview: A Strong Finish to 2024
Despite a changing economic landscape, Brooklyn’s housing market remained active and competitive, attracting both New Yorkers and newcomers.
- Total Sales: 2,292 (+7.7% YoY)
- Median Sale Price: $995,000
- Average Sale Price: $1.29M
- Average Price Per Sq Ft: $880
- Contracts Signed: 1,560 (+6.6% YoY)
- Inventory: 2,863 properties (-4.0% YoY)
- Average Days on Market: 124
Key Takeaway: Buyers are adjusting to higher mortgage rates and moving forward, leading to increased sales and contract signings compared to last year.
Brooklyn Condo Market: Steady Growth
Condos played a significant role in Brooklyn’s Q4 market activity, with an increase in sales and inventory.
- Sales Growth: +7.3% YoY
- Median Sale Price: $1.05M (+5.1% YoY)
- Average Price Per Sq Ft: $1,219
- Contracts Signed: +30.3% YoY
- Inventory Increase: +16.3% YoY
Key Takeaways:
- More choices for condo buyers as inventory grew by 16.3%.
- Prices remained strong, but discounts averaged 4%.
- Condos in Northwest Brooklyn saw the highest price appreciation.
Brooklyn Co-op Market: A Decline in Activity
Unlike condos, the co-op market experienced a slowdown due to inventory constraints and buyer hesitation.
- Sales Growth: +3.1% YoY
- Median Sale Price: $450,000 (+5.9% YoY)
- Average Price Per Sq Ft: $659
- Contracts Signed: -46.2% YoY
- Inventory Decline: -25.8% YoY
Key Takeaways:
- Co-ops faced inventory shortages, leading to fewer transactions.
- Buyer demand exists, but supply limitations slowed contract activity.
- Sellers may have leverage, as limited supply keeps competition high.
Brooklyn House Market: The Dominant Force
Single-family homes dominated Brooklyn’s market, making up 51.4% of all Q4 transactions.
- Sales Growth: +9.8% YoY
- Median Sale Price: $1.19M (+10.9% YoY)
- Average Price Per Sq Ft: $649
- Contracts Signed: +19.9% YoY
- Inventory Decline: -6.3% YoY
Key Takeaways:
- The demand for more space and private homes continues to drive this market.
- South Brooklyn led house sales, with a 33.5% market share.
- Tight inventory and high demand make houses a strong investment.
Submarket Breakdown: Where is the Demand?
Most Active Areas in Q4 2024:
- South Brooklyn (33.5% of contracts): High demand for houses.
- Northwest Brooklyn (32.2% of contracts): Popular for luxury condos and brownstones.
- North Brooklyn: The highest price growth, reflecting demand for condos and townhouses.
Notable Trends:
- Luxury price points ($2M-$3M and $3M+) saw more inventory.
- Northwest Brooklyn reached its highest median prices in 10 years.
- Properties under $500K saw a decline in activity, as buyers focused on mid-to-high price tiers.
What to Expect in Early 2025
Brooklyn remains one of NYC’s most competitive and in-demand markets, and 2025 is expected to bring continued sales momentum.
- More inventory is needed to sustain demand, especially in the co-op market.
- House sales will likely continue to rise, as buyers prioritize space.
- Luxury properties are performing well, with high-end buyers moving forward.
- A strong start to 2025 is anticipated, as contract signings increased by 6.6% YoY.
If you’re considering buying or selling in Brooklyn, The Baruh Team can help you navigate the market and find the right opportunities.
📩 Contact us today to discuss your real estate goals!