Brooklyn Q3 2016 Market Reports
It is my pleasure to share Compass' 3Q16 Brooklyn Market Report, which looks at the prevailing trends shaping the market from this past quarter and provide a glimpse into the research and data analytics in which Compass prides itself.
• The median closing price for Brooklyn overall set an all-time high of $850,000, a 16.4% increase over the third quarter 2015. Median closing prices were up in all Major Markets, with the largest year-over-year increase (29.1%) occurring in East Brooklyn, made up of the emerging neighborhoods of Bushwick, Bed-Stuy, and Crown Heights.
• Central Brooklyn exhibited very strong market fundamentals in the third quarter, leading all Major Markets in both overall median closing price ($1.06M) and fewest days on market, with listings spending a median of just 36 days on market before being sold.
• Overall inventory was up 3.2% year-over-year as a 13% increase in the number of available condos compensated for a 4.9% decrease in co-ops and a 7.5% decrease in single-family homes. The median price of available units increased 6.1% to $950,000, supported by a notable 47.1% year-over-year increase in the number of condo units priced between $2M and $3M.
Brooklyn’s residential market continues to show strong supply and demand fundamentals. The year-over-year increase in the number of contracts signed (8.5%) surpassed the increase in available inventory (3.2%) despite increased prices for both active and sold units. Based on a trailing monthly average of 344 signed contracts, Brooklyn is currently in under-supplied territory with 5.3 months of supply. New development closings at properties such as One John Street have pushed Brooklyn’s median closing price to new highs, and we expect that trend to continue in the coming quarters.