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
SENIOR MANAGING DIRECTOR
Rory Golod
Elizabeth Ann Stribling-Kivlan
Dennis McCarthy
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