Brooklyn Home Prices Keep Climbing as Rents Drop

Home prices just keep rising in Brooklyn as the number of sales drop but listing inventory is starting to increase as interest rates notch down, third quarter reports out this week found. Separately, rents dipped slightly although rental bidding wars made up a quarter of signed leases, September reports showed.

The median closed-sale price for all types of homes in the borough rose 2.6 percent to $975,000 in the quarter vs. the same period a year earlier, according to Miller Samuel’s report for Douglas Elliman. The average sale price clocked in at $1,244,397, an increase of 1.8 percent during the same period.

Co-op sale prices surged while condo prices declined, in a reversal of recent trends. Townhouses (defined as one- to three-family houses) also jumped, rising to an average price per square foot of $635 — a record increase of 25.2 percent for the quarter compared to the same time a year ago.

The biggest gains seen were for properties valued between $1 and $4 million, said Douglas Elliman President and CEO for the Northeast Region Richard Ferrari in an online letter accompanying the report. “Cash sales accounted for two-thirds of all condo closings,” he added.

In the quarter, 2,525 properties changed hands, down 4.1 percent from 2023. The quarter also saw listing inventory rise a chunky 13.4 percent to 2,939 properties.

Certain areas fared better than others: Indicators dipped a hair in southern Brooklyn, while they were largely positive in north, northwest, and east Brooklyn. Standing out was the price per square foot for townhouses in northwest Brooklyn, which rose a whopping 48.7 percent to $1,921 year over year. However, the number of sales was not large at only 108.

Meanwhile, in the rental market, renters may be finally getting a bit of a break, with average rents notching down 2.4 percent to $4,063 vs. the same time last year. Lease signings rose 213.2 percent to 3,928, according to Miller Samuel’s September rental report for Douglas Elliman.

The average rent for a one-bedroom now stands at $3,269, actually an increase of 2 percent vs. a year earlier, while average price per square foot for a one-bedroom squeaked down 0.2 percent to $57.82. A two-bedroom now averages $4,202 per month, and a three-bedroom $5,101, dropping 2.3 percent and 15.6 percent over the year, respectively.

Brooklyn is still hot, concluded Corcoran SVP, General Sales Manager, NY Michael Sorrentino in the firm’s third quarter sales report. “Lower mortgage rates are encouraging buyers to jump back in, and with inventory up 15 percent annually, they have more options than before.”

Related Stories

• Home Sale Prices Higher Than Ever in Brooklyn
• Brooklyn Real Estate Market Moves Sideways, Third-Quarter Reports Say
• Home Prices Level Out in Brooklyn, But Bidding Wars Increase With Drop in New Listings

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