Brooklyn Q4 2023 Report

Q4 2023

Brooklyn Market Report

38 Monroe Place Courtesy of: Barbara Wilding Photo: Melanie Greene, Greenehouse Photography

This quarter, Brooklyn faced the challenge of an inventory shortage head-on, enduring a decrease of 14.6% year-over-year and 32.1% quarter-over-quarter, dropping below 3,000 active properties for the first time since 2014. Accordingly, prices were generally up across the borough for the last asking price, climbing 5.0% and 10.9% in average and median price, respectively. Contracts fell 3.7% year-over-year and 3.5% quarter- over-quarter, aligning with pre- 2020 trends. With inventory hitting a plateau, new listings were down 3.3% year- over-year and 18% quarter-over- quarter. Interest in co-ops surged, propelling co-ops to have a 2.7% higher average price this quarter,

but a 2.1% lower median price. Co- ops sold in the $1M-$2M price range were up 15% in comparison to Q4 2022. However, condos also saw a larger increase in contracts signed than co-ops and increased by 2.1% while co-ops declined by 10.8%. Interestingly, houses saw the least decline in sales with a 5.4% decrease year-over-year and 8.4% quarter-over-quarter, and a 3.0% hike in average price per square foot. Houses between the price brackets of $2M and $3M grew 8.8% in the number of sales year- over-year, making it the only price bracket for homes to increase. Still, sales overall declined 20.7% year-over-year and 12.4% quarter- over-quarter, parallel with the lack

of inventory available.

Despite facing a pronounced inventory shortage, Brooklyn’s real estate landscape anticipates positive developments in 2024. The borough, grappling with a more acute inventory challenge, is poised for a potential turnaround as rates decrease. This shift is expected to inject momentum into the market, encouraging prospective buyers to overcome hesitation and proceed with long- awaited purchases. As Brooklyn navigates these challenges, the borough’s unique character and strong spirit remain resilient, paving the way for a bright future in the real estate scene.

PRESIDENT OF GROWTH & COMMUNICATIONS

SENIOR MANAGING DIRECTOR

Rory Golod

Elizabeth Ann Stribling-Kivlan

Dennis McCarthy

Introduction

02 05 06 07 08 09 12

Market Highlights Methodology Recorded Sales Contracts Signed

Inventory Submarkets

SOURCES

REBNY RLS, ACRIS (Automated City Register Information System)

Brooklyn Market Report Neighborhood Map

Facing a pronounced inventory shortage, prices climbed across the borough, while sales and contracts slowed accordingly.

$1,241,506 Average Sales Price Q4 2023

$1,464,780 Average Condo Price Q4 2023

$847 Average Price Per Square Foot Q4 2023

5% Average Discount Q4 2023

$950,000 Median Sales Price Q4 2023

$624,508 Average Co-op Price Q4 2023

133 Average Days on the Market Q4 2023

26% of Properties Took More Than 180 Days to Enter Contract

Methodology

Geography covered in this report is Brooklyn.

Time on Market is calculated by how many properties entered contract during the quarter in the given period.

Inventory is calculated based on all properties actively listed during the quarter at the time the report is prepared.

Discount is the percentage diference between the initial list and recorded sale price.

Contract Signed fgures for the current quarter are based on publicly reported transactions at the time the report is prepared. The signed price refects the latest available asking price.

Bedroom Count is the number of bedrooms a property has, as reported in the listing, or acquired from tax records, when available.

Recorded Sales fgures for the quarter are based on known closings recorded at the time the report is prepared.

Current Quarter is refective of the initial day of the quarter until the 20th day of the quarter's closing month. These numbers will be updated in subsequent reports to refect the dataset of the entire quarter.

Median Price is the middle price of a given dataset.

Average Price is the sum of all prices divided by the total number of properties.

Quarters Q1: January 1 - March 31 Q2: April 1 - June 30 Q3: July 1 - September 30 Q4: October 1 - December 31

Months of Supply is an estimated time it would take to sell all current active listings based on the trailing 12-month sales rate.

Recorded Sales BY PROPERTY TYPE

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

632

747

-15.4%

902

-29.9%

# SALES

$925,741,000 $941,078,875 -1.6% $1,121,933,422 -17.5%

SALES VOLUME

Sales overall declined 20.7% year-over-year and 12.4% quarter-over-quarter Condos saw the most signifcant decline of 29.9% compared to Q4 2022, but units with 3 or 4+ bedrooms were a signifcantly larger percentage of closings this quarter Houses saw the least decline, with a 15.4% decrease year- over-year and 8.4% quarter-over-quarter, and a 3.0% hike in average price per square foot to the highest for a Q4 on record There were 25% more condos sold for $3M and above this year, climbing to 7.9% market share of condo transactions, and this group also saw its highest average and median price to date

AVG. DISCOUNT

$999,000

$977,000

2.3%

$981,500

1.8%

MEDIAN PRICE

$1,464,780 $1,259,811 16.3% $1,243,829 17.8%

AVERAGE PRICE

AVERAGE PPSF

$1,218

$1,152

5.7%

$1,206

1.0%

AVERAGE SF

1,240

1,055

17.5%

1,059

17.1%

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

422

509

-17.1%

513

-17.7%

# SALES

$263,542,198 $336,127,816 -21.6% $298,832,722 -11.8%

SALES VOLUME

AVG. DISCOUNT

SALES

MEDIAN SALE PRICE

$425,000

$505,000 -15.8% $425,000

MEDIAN PRICE

AVERAGE PRICE

$624,508

$660,369 -5.4% $582,520

7.2%

$600K $650K $700K $750K $800K $850K $900K $950K $1.0M $1.1M

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

1,074

1,172

-8.4%

1,269

-15.4%

# SALES

$1,452,640,715 $1,666,982,376 -12.9% $1,713,677,166 -15.2%

SALES VOLUME

AVG. DISCOUNT

$1,077,500

$1,075,000 0.2% $1,075,000 0.2%

MEDIAN PRICE

$1,352,552

$1,422,340 -4.9% $1,350,415 0.2%

AVERAGE PRICE

Q4 '14Q4 '15Q4 '16Q4 '17Q4 '18Q4 '19Q4 '20Q4 '21Q4 '22Q4 '23 0 500

AVERAGE PPSF

$615

$622

-1.1%

$597

3.0%

AVERAGE SF

2,459

2,489

-1.2%

2,470

-0.4%

Contracts Signed BY PROPERTY TYPE

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

538

533

0.9%

527

2.1%

# CONTRACTS

AVG. DISCOUNT

Contract activity was down slightly, falling 3.7% year-over- year and 3.5% quarter-over-quarter, but aligned with pre- 2020 trends Prices were generally up across the borough for last asking price, climbing 5.0% and 10.9% in average and median price, respectively North Brooklyn saw a 25.0% jump in contracts year-over-year and was the only submarket to see growth, while Northwest Brooklyn saw the largest decline, fueled by signifcantly less co-op and house activity this quarter Properties entering contract at $1M and above were up this quarter, with the largest increases seen in the $2M-3M and $3M+ ranges

$1,105,000

$995,000 11.1% $999,000 10.6%

MEDIAN PRICE

$1,408,895 $1,267,282 11.2% $1,319,878 6.7%

AVERAGE PRICE

$1,195

$1,175

1.7%

$1,176

1.6%

AVERAGE PPSF

AVERAGE SF

1,151

1,124

2.4%

1,110

3.7%

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

363

375

-3.2%

407

-10.8%

# CONTRACTS

AVG. DISCOUNT

$495,000 $465,000 6.5% $525,000 -5.7%

MEDIAN PRICE

$673,012 $691,763 -2.7% $714,639 -5.8%

AVERAGE PRICE

CONTRACTS

MEDIAN SALE PRICE

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

$650K $700K $750K $800K $850K $900K $950K $1.0M $1.1M $1.1M $1.2M

# CONTRACTS

536

588

-8.8%

567

-5.5%

3,000

AVG. DISCOUNT

2,500

$1,462,500 $1,298,500 12.6% $1,365,000 7.1%

MEDIAN PRICE

2,000

$1,789,101 $1,584,095 12.9% $1,693,060 5.7%

AVERAGE PRICE

1,500

$708

$638

11.0%

$682

3.8%

AVERAGE PPSF

2,554

2,495

2.4%

AVERAGE SF

1,000

500

Q4 '14Q4 '15Q4 '16Q4 '17Q4 '18Q4 '19Q4 '20Q4 '21Q4 '22Q4 '23 0

Inventory BY PROPERTY TYPE

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

801

1,226

-34.7%

1,044

-23.3%

# ACTIVES

$990,000

$950,000

4.2%

$929,000

6.6%

MEDIAN PRICE

Inventory fell 14.6% year-over-year and 32.1% quarter-over- quarter, dropping below 3,000 active properties for the frst time since 2014, emphasizing the inventory struggle Condos saw the greatest drop in active listings of 23.3% year- over-year, while houses were down 8.1% Year-to-date new listings were down 21.1% following a decline of 5.6% in 2022, the lowest since 2016 55.5% of inventory was in South Brooklyn and was predominantly houses, followed by 18.9% in Northwest Brooklyn

$1,424,759 $1,373,360 3.7% $1,404,721 1.4%

AVERAGE PRICE

$1,176

$1,155

1.8%

$1,165

0.9%

AVERAGE PPSF

1,980

1,158

71.0%

1,155

71.4%

AVERAGE SF

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

# ACTIVES

566

856

-33.9%

683

-17.1%

$439,500 $449,000 -2.1% $449,000 -2.1%

MEDIAN PRICE

$614,330 $630,557 -2.6% $597,937 2.7%

AVERAGE PRICE

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

ACTIVE PROPERTIES

MEDIAN SALE PRICE

# ACTIVES

1,522

2,173

-30.0%

1,656

-8.1%

MEDIAN PRICE

$1,499,000 $1,500,000 -0.1% $1,499,000

$700K $750K $800K $850K $900K $950K $1.0M $1.1M $1.1M $1.2M $1.2M $1.3M

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000

AVERAGE PRICE

$2,039,423 $2,034,040 0.3% $1,964,471 3.8%

AVERAGE PPSF

$709

$701

1.1%

$702

1.0%

2,892

2,927

-1.2%

2,828

2.3%

AVERAGE SF

Q4 '14Q4 '15Q4 '16Q4 '17Q4 '18Q4 '19Q4 '20Q4 '21Q4 '22Q4 '23 0 500

Recorded Sales BY SUBMARKET

CONDO

CO-OP

HOUSE

50.4% (1,072)

50%

40%

30%

25.2% (536)

20%

14.6% (310)

9.9% (211)

10%

North Brooklyn

Northwest Brooklyn

East Brooklyn

South Brooklyn

10%

Q4 2023 Total Inventory

19%

56%

15%

North Brooklyn

Northwest Brooklyn

East Brooklyn

South Brooklyn

16%

Q4 2023 Newly Listed Inventory

46%

24%

14%

North Brooklyn SUBMARKET OVERVIEW

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

130

172

-24.4%

218

-40.4%

# SALES

$166,921,991 $226,649,878 -26.4% $322,499,026 -48.2%

SALES VOLUME

AVG. DISCOUNT

CONDO

CO-OP

HOUSE

$1,169,506

$1,100,000 6.3% $1,245,000 -6.1%

MEDIAN PRICE

$1,284,015

$1,317,732 -2.6% $1,479,353 -13.2%

AVERAGE PRICE

AVERAGE PPSF

$1,330

$1,309

1.6%

$1,427

-6.8%

26%

AVERAGE SF

993

1,013

-2.0%

1,013

-2.0%

Q4 2023 Market Share

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

-42.9%

-27.3%

# SALES

70%

$3,431,000 $8,437,000 -59.3% $4,590,000 -25.3%

SALES VOLUME

AVG. DISCOUNT

$422,500

$449,000 -5.9% $395,000

7.0%

MEDIAN PRICE

AVERAGE PRICE

$428,875

$602,643 -28.8% $417,273

2.8%

INVENTORY

CONTRACTS

SALES

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

-31.9%

-37.2%

# SALES

0 100 200 300 400 500

$77,115,313 $127,133,888 -39.3% $138,985,375 -44.5%

SALES VOLUME

AVG. DISCOUNT

$1,300,000 $1,484,000 -12.4% $1,480,000 -12.2%

MEDIAN PRICE

$1,573,782 $1,765,748 -10.9% $1,781,864 -11.7%

AVERAGE PRICE

AVERAGE PPSF

$632

$650

-2.8%

$622

1.6%

AVERAGE SF

2,880

3,047

-5.5%

2,938

-2.0%

Q4 '20

Q4 '21

Q4 '22

Q4 '23

Northwest Brooklyn SUBMARKET OVERVIEW

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

236

231

2.2%

291

-18.9%

# SALES

$535,194,096 $401,016,438 33.5% $513,947,491 4.1%

SALES VOLUME

AVG. DISCOUNT

CONDO

CO-OP

HOUSE

$1,650,000

$1,540,000 7.1% $1,500,000 10.0%

MEDIAN PRICE

$2,267,772

$1,736,002 30.6% $1,766,143 28.4%

AVERAGE PRICE

AVERAGE PPSF

$1,517

$1,381

9.8%

$1,378

10.1%

19%

AVERAGE SF

1,425

1,267

12.5%

1,289

10.6%

Q4 2023 Market Share

50%

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

149

232

-35.8%

182

-18.1%

# SALES

31%

$157,131,760 $223,511,027 -29.7% $167,883,404 -6.4%

SALES VOLUME

-1%

AVG. DISCOUNT

$830,000

$805,000

3.1%

$750,000 10.7%

MEDIAN PRICE

AVERAGE PRICE

$1,054,576

$963,410

9.5%

$922,436 14.3%

INVENTORY

CONTRACTS

SALES

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

106

-14.2%

108

-15.7%

# SALES

1,000 1,200 1,400

$262,073,585 $331,136,414 -20.9% $338,837,545 -22.7%

SALES VOLUME

AVG. DISCOUNT

0 200 400 600 800

$2,500,000

$2,870,000 -12.9% $2,803,500 -10.8%

MEDIAN PRICE

$2,879,930

$3,123,928 -7.8% $3,137,385 -8.2%

AVERAGE PRICE

AVERAGE PPSF

$1,080

$1,102

-2.0%

$1,007

7.2%

AVERAGE SF

2,781

2,922

-4.8%

3,084

-9.8%

Q4 '20

Q4 '21

Q4 '22

Q4 '23

East Brooklyn SUBMARKET OVERVIEW

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

104

-26.0%

109

-29.4%

# SALES

$65,207,790 $82,954,338 -21.4% $82,759,920 -21.2%

SALES VOLUME

AVG. DISCOUNT

CONDO

CO-OP

HOUSE

$795,000

$771,324

3.1%

$664,004 19.7%

MEDIAN PRICE

$846,854

$797,638

6.2%

$759,265 11.5%

AVERAGE PRICE

AVERAGE PPSF

$906

$999

-9.3%

$1,007

-10.0%

28%

AVERAGE SF

955

833

14.6%

805

18.6%

Q4 2023 Market Share

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

21.4%

6.3%

# SALES

66%

$12,266,817 $7,297,000 68.1% $9,154,955 34.0%

SALES VOLUME

AVG. DISCOUNT

$605,000

$449,500 34.6% $529,500 14.3%

MEDIAN PRICE

AVERAGE PRICE

$721,577

$521,214 38.4% $572,185 26.1%

INVENTORY

CONTRACTS

SALES

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

181

172

5.2%

201

-10.0%

# SALES

$238,563,283 $227,388,416 4.9% $235,710,325 1.2%

SALES VOLUME

0 100 200 300 400 500 600 700

AVG. DISCOUNT

$1,075,000

$999,000 7.6% $985,000

9.1%

MEDIAN PRICE

$1,318,029

$1,322,026 -0.3% $1,172,688 12.4%

AVERAGE PRICE

AVERAGE PPSF

$572

$500

14.4%

$524

9.2%

AVERAGE SF

2,814

2,662

5.7%

2,414

16.6%

Q4 '20

Q4 '21

Q4 '22

Q4 '23

South Brooklyn SUBMARKET OVERVIEW

% Δ

Condos

Q4 '23

Q3 '23

Q4 '22

172

199

-13.6%

236

-27.1%

# SALES

$120,066,193 $138,713,698 -13.4% $161,570,967 -25.7%

SALES VOLUME

AVG. DISCOUNT

CONDO

CO-OP

HOUSE

$669,499

$650,000

3.0%

$636,406

5.2%

MEDIAN PRICE

$698,059

$697,054

0.1%

$684,623

2.0%

AVERAGE PRICE

AVERAGE PPSF

$718

$757

-5.2%

$797

-9.9%

18%

AVERAGE SF

1,291

918

40.6%

876

47.4%

Q4 2023 Market Share

% Δ

Co-ops

Q4 '23

Q3 '23

Q4 '22

56%

26%

247

248

-0.4%

301

-17.9%

# SALES

$90,277,621 $96,632,789 -6.6% $115,721,901 -22.0%

SALES VOLUME

AVG. DISCOUNT

$331,006

$346,000 -4.3% $345,000

-4.1%

MEDIAN PRICE

AVERAGE PRICE

$365,496

$389,648 -6.2% $384,458

-4.9%

INVENTORY

CONTRACTS

SALES

% Δ

Houses

Q4 '23

Q3 '23

Q4 '22

533

570

-6.5%

592

-10.0%

# SALES

1,000 1,500 2,000 2,500

$609,683,314 $662,927,633 -8.0% $661,187,429 -7.8%

SALES VOLUME

AVG. DISCOUNT

$995,000

$990,000 0.5% $999,000

-0.4%

MEDIAN PRICE

$1,143,871

$1,163,031 -1.6% $1,116,871 2.4%

AVERAGE PRICE

0 500

AVERAGE PPSF

$539

$541

-0.4%

$518

4.1%

AVERAGE SF

2,265

2,292

-1.2%

Q4 '20

Q4 '21

Q4 '22

Q4 '23

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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