Day: October 15, 2024

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% 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.

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% 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% 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, an increase of 2% compared to a year earlier, while the average price per square foot for a one-bedroom squeaked down 0.2 % to $57.82. A two-bedroom now averages $4,202 per month, and a three-bedroom $5,101, dropping 2.3% and 15.6% 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% annually, they have more options than before.”

This story first appeared on Brooklyn Paper’s sister site Brownstoner