Fueled by a low inventory of homes for sale, median prices are on the rise, hitting a record breaking $594,000 in the first quarter of 2016, the highest price point we’ve seen in the past 4 years. Compared to last year’s Q1, median sale prices climbed a solid 11%.
The Brooklyn home market is still low in terms of transactions, having fallen from the peaks seen in 2013. However, 5% more sales were registered this quarter versus the same period of 2015.
Generally, the first quarter of any given year records the least sales; yet, with 1,873 deals closed in its first quarter, 2016 has had a better head start than any seen in recent years.
Co-ops are on the rise, condos lag behind
Prices for co-ops registered the highest positive evolution of all property types in Q1, where the median home price surged 27% Y-o-Y to an impressive $361,000. A 15% increase in price per square foot completed this quarter’s success story for co-ops, these usually less expensive properties on the Brooklyn market.
Single family homes were 15% pricier than a year ago, at $660,000 for an average home, with a remarkable 25% jump in prices per square foot. In fact, all types of residential properties recorded rises in the latter stat, though condo units saw the weakest performance this last quarter.
|Median Sale Price||Median Sale Price/sqft|
|Q1 2016||ΔYoY||Q1 2016||ΔYoY|
|Single family houses||$660,000||15%||$436||25%
Brooklyn luxury homes market slowing down
Precisely 300 luxury home sales of $1 million and more were recorded last quarter in Brooklyn, up 6% from Q1 2015. However, the median home price stagnated over the same period of time, flat-lining at $1,380,000. Equally uneventful were prices per square foot, which barely nudged Y-o-Y and stood at $1,041.
|Brooklyn Luxury (over $3 MIL)|
|Q1 2016||Q1 2015||ΔYoY|
|Number of Transactions||300||284||6%
|Median Sale Price||$1,380,000||$1,390,000||-1%
|Median Sale Price/sqft||$1,041||$1,026||1%
All in all, last quarter continued to register a positive trend for the Brooklyn residential market, with higher prices than we have seen in a while and slightly above average transaction volumes for this time of year. It is only when put alongside the dazzling results on the Manhattan market (mostly driven by its luxury end) that numbers recorded in Brooklyn seem to underwhelm at the end of an otherwise great start to the year in real estate.
Figures used to compile this report were collected by PropertyShark from public sources recording closed sales between January 1, 2012 and March 31, 2016. Properties covered by this report include single-family homes, condos and co-op units only. The numbers for Q1 2016 were adjusted upwards by 21%, based on historical trends observed using in-house data, in order to take into account sales left unrecorded at the time of the report.