Increased demand in emerging areas pushed outer market prices higher
NEW YORK, Jan. 11, 2018 /PRNewswire/ -- Stribling & Associates, a leading New York residential brokerage, today releases the fourth quarter Brooklyn Market Report. The report, one of the only to cover inventory, contracts and sales across the entire borough, revealed mixed activity, as some submarkets strongly outperformed others.
"When looking at the market, it is clear the pace of construction has pushed up prices borough-wide, especially in the outer markets," said Garrett Derderian, Director of Data & Reporting at Stribling. "While we have seen an incredible amount of costly new development in the North and Northwest submarkets, the strongest median and average price increases were in the East and South areas, which have historically been more affordable."
According to the report, in East Brooklyn, the median sale price increased 9% to $722,500 and the average price improved 5% to $817,183. South Brooklyn also showed gains, with the median price up 4% to $631,658, and average increasing 2% to $730,868.
"Northwest Brooklyn continued to be the most expensive market in terms of average price," Derderian continued, "even though the median and average declined, the average price per square foot increased 5% to $1,137. This was a result of more buyers purchasing smaller unit types, which generally fall in the $1-3 million range. North Brooklyn recorded the highest PPSF, at $1,183."
Despite commanding the highest average sale PPSF, Derderian cautioned, "when looking at contracts signed, North Brooklyn took a big hit. The median price was down 15%, average down 8%, and PPSF was down 4%. Among other factors, the market is starting to feel the effects of the impending L-train shutdown." This was also true for inventory, where North Brooklyn, while improving, was the only submarket to see single-digit growth for median and average prices. "However, this could be perceived as a buying opportunity in an otherwise strong market," Derderian advised.
Fourth quarter closings under $500K were at their lowest Q4-level to date, capturing 25% of the total market. It highlighted that this was the first time a fourth quarter had more closings above $1M, capturing 28%, than below $500K.
When looking at active inventory, asking prices in the Northwest Brooklyn saw the biggest spike, where the median jumped 20% to $1.5M and the average increased 16% to $2.1M, and was the only market with an average price above $2M. Both East and South Brooklyn saw similar increases, with the average price in East Brooklyn rising 22% to $1.2M.
Derderian also forecasts that prices will continue to rise in the coming quarters: "When looking at total inventory, 40% is priced above $1 million, the highest fourth quarter level to date. This was the first fourth quarter where we saw more inventory priced between $1-2 million, at 25%, than below $500K, at 22%. If you look back 5 years, 55% of inventory was priced below $500K."
Highlights from Stribling & Associates 4Q Brooklyn Market Report:
- Median sales price was $746,707, up 2% year-over-year
- Average sales price was $913,493, up 1% year-over-year
- Average price per square foot was $855, up 2% year-over-year
- Average days on market was 86, slightly down from 88 one year ago
- There are 6.4 months of supply, down from 7.3 one year ago
- There were 2,532 recorded sales to date, 4% more than one year ago
- Condo units saw an average PPSF of $1,053
- Condos had the highest median price at $816,250
- Co-op units had a median price of $430,000
- Properties sold between $500K-1M made up 47% of all closings
- 7% of closings were priced above $2M
- North Brooklyn had the highest average PPSF at $1,183
- Northwest Brooklyn had the highest average sale price at $1,307,561
- South Brooklyn remained the most affordable submarket with an average PPSF of $551
- There were 1,519 contracts signed
- Condos made up 53% of all contracts
- Condos recorded the highest average PPSF at $1,068
- Townhouses/houses has the highest median price at $998,900
- Units priced above $3M saw the median rise 11% and average increase 17%
- North Brooklyn saw all metrics decline
- South Brooklyn had the largest price increases with the median up 13% and average up 2%
- Northwest Brooklyn had the most expensive contracts signed with a median price of $1,097,000 and average of $1,439,394
- There were 3,203 active units in the borough, a 3% increase year-over-year
- Condos made up 47% of inventory
- Condo units had the highest average PPSF at $938
- Co-op units were the most affordable, with an average PPSF of $563
- There was more inventory priced between $1-2M than below $500K
- 38% of inventory was priced between $500K-1M
- No submarket had average or median price declines
- Strongest yearly price gains were in North Brooklyn, with a median increase of 20% and average rise of 16%
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout three locations in Manhattan and one in Brooklyn. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.
Ashley Murphy, Director of Public Relations
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