Brooklyn Sees Home-Buying Excitement Despite Wider Slowdown

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picture of August 2020 market reports showing growth in pending home sales in Brooklyn, New York

StreetEasy’s August 2020 market reports reveal a growing expectation of home sales across Brooklyn, defying trends in other townships. (Getty Images)

An almost record number of Brooklyn homes were contracted in August, even as pending sales in Manhattan and Queens continued to fall amid a market slowdown, according to StreetEasy’s August 2020 market reports.

Expected sales in Brooklyn grew 38.7% compared to last year, with 735 homes under contract – 205 more than last year. The only time that pending sales was higher in the township was in March 2019, when 748 homes entered into a contract.

Brooklyn was the clear exterior of all the townships analyzed. In Manhattan and Queens, the number of homes contracted fell by 6.0% and 4.3%, respectively. However, the increase in Brooklyn sales shows that New Yorkers continue to be interested in buying homes, and that some market segments remain highly competitive.

Expected sales in Brooklyn have increased through almost all five prices:

  • Expected sales at Brooklyn’s lowest level, where the median price is $ 253,000, increased by 100% over 2019.
  • Expected home sales at the second-highest level, with an average price of $ 999,614, rose 65% over last year.
  • The only level that didn’t change much was the highest or luxury level, with an average of $ 1,613,856, where pending sales fell 0.7%.

The increase in Brooklyn sales activity was not caused only by homes at one price or location. Sales have increased in more affordable neighborhoods like Bay Ridge and Flatbush, as well as in more expensive locations like Downtown Brooklyn and Prospect Park.

In fact, the Perspective Park [i] Submarket saw the biggest year after year increase in pending sales across the city. In August, 111 homes were contracted there, more than double (117%) of what the supermarket saw last year. Prices also rose in Prospect Park – more than 3.0% to $ 1,295,000, in the town’s biggest year-on-year jump.

“The striking rise of new deals in Brooklyn is one of the first optimistic indicators for the city’s retail market, and suggests that contrary to popular belief, many are committed to living long-term in the city,” says StreetEasy Economist Nancy Wu.

“Manhattan has been much slower to rebound – indicating that buyers looking to take advantage of the low mortgage rates and stay in the city prioritize space and affordability more than living close to their offices,” Wu says. “Everything else is equal. Brooklyn homes give more boom to a homebuyer than Manhattan.”

Manhattan had the Most Inventory in Over a Decade

Total sales inventory in Manhattan grew 24% over the past year, with 10,639 homes on the market – the highest number in more than a decade. As supply increased, prices fell, as did the number of homes contracted.

The StreetEasy Manhattan Price Index [ii] fell 4.5% to $ 1,395,000, its lowest level since July 2014. Even with prices declining, the number of homes entering into a contract is still down 6.0% from last year.

Brooklyn Prices Remained Flat as Pink Inventory

The Brooklyn Street Price Index remained flat compared to last year at $ 956,900. Prices have fallen in North Brooklyn [iii], the town’s most expensive supermarket, up 3.9% to $ 1,410,000.

Sales in the township were almost record high levels with 5,830 homes on the market – an increase of 6.6% compared to last year. Inventory has not been as high since October 2019.

Prices have risen in the most expensive regions of Queens

Prices have risen in the Northwest [iv] and Northeast [v] Queens, the two most expensive supermarkets in the township, at 3.5% and 3.4% respectively. However the StreetEasy Queens Price Index remained flat at $ 660,000.

The August 2020 market reports found that sales storage continued to continue in these expensive areas – particularly in Northwest Queens, where storage grew 24.7% year-on-year, to a record high of 601 available homes. The number of households entering into a contract has grown from the lows seen earlier this spring, but is still down 4.3% compared to last year.

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Look at everyone StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphs. Definitions of StreetEasy’s metrics and monthly data from each report can be researched and downloaded using the StreetEasy Data Dashboard.

[i] The Prospect Park submarine includes Park Slope, Prospect Heights, Prospect Lefferts Gardens, Prospect Park South and Windsor Terrace.

[ii] The StreetEasy Price Indices track changes in resale prices of apartments, cooperative and city units. Each index uses a repeat-sale method to compare the selling prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Considering this methodology, each index accurately captures the change in house prices by checking the variable composition of homes sold in a given month. Street Indicator Price levels reflect average values ​​of homes on the market. Data on home sales are obtained from the New York Department of Finance. Full methodology here.

[iii] The North Brooklyn submarket includes Greenpoint and Williamsburg.

[iv] The Northwest Queens supermarket includes Astoria, Long Island City and Sunnyside.

[v] Northeast Queens ’supermarket includes Auburndale, Bayside, Bellerose, Flushing, Kew Gardens, Little Neck and Whitestone.

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