A new report suggests that the Brooklyn Real Estate sales market has now come down to the 5 year average this quarter. The main reason for the conditions has been rising prices of all properties throughout Brooklyn. According to the Corcoran Report for the 3rd quarter of 2016 “buyers have greater options with more listings on the market, however the additional inventory has been largely at the high end. Transactions are also taking longer to complete, verified by a higher days on market figure.”
Overall real estate closings on properties were down 19% from 3rd quarter of last year and the average days of the market has increased from 58 days to 67 days totaling a 16% increase. The average price has increased 27% from $728,000 to $926.000. This increase may be one of the indicators on why properties have stayed on the market longer than the same quarter in 2015. With respect to supply Corcoran states
“After nearly three years of declining inventory since the peak in Second Quarter 2011, available inventory has increased year over-year for eight of the nine past quarters. There were 2,236 listings available during Third Quarter 2016, 7% more than last year. The year-over-year increase was driven by resale condo and new development listings, as resale co-op inventory was 3% lower. This is the fifth consecutive quarter of annual co-op inventory decline. New development inventory rose by a significant 40% compared to last year. 2016 new development introductions have already surpassed 2015 just three quarters into the year. This influx of new development units helped total condo inventory to claim a 58% market share, the highest seen since First Quarter 2011”.
Brooklyn Heights, Dumbo, Cobble Hill and Downtown remain a hot spot for activity as sales increased 17% while prices increased 11% to an average of $1,100,000. Park Slope and Gowanus has seen an increase in inventory of 64% from the same period last year while median prices have increased year over year as well.
Most believe that the pace of submitting offers will pick up after the election season. Many believe that offers were not being submitted in the quarter because the Presidential candidates have differing opinions of core tax principles which would affect homeowners. Expect prices and sales increase in 2017. Property management activity in Brooklyn should remain strong heading into 2017.