For the first time, average Brooklyn home prices break the $1M threshold
According to Douglas Elliman’s latest market report, home prices in Brooklyn are higher than ever. The median and average sales prices for the borough both broke records, crossing the $800,000 and $1 million thresholds for the first time in the third quarter of this year. “As the Brooklyn market continues to reinvent itself over the past five years,” says the report, “There is no standard of comparison with historical trends.” It means Brooklyn, and also Queens, boast some of the fastest residential price growth in the country, with new developments cropping up and demand skyrocketing as buyers stream into outer boroughs.
In Brooklyn, the median sales price increased 2.3 percent from last year up to $808,000, a record, and the average sales price went up 7.2 percent to $1,051,999, also a record. (The median sales price for luxury inventory was unchanged from a year ago, at $2,500,000.) Queens, too, set records. The median sales price rose 4.3 percent to $573,500, the highest it’s ever been, and the average sales price rose 3.4 percent to a record $635,281. (The median luxury home was $1.28 million, up 1.6 percent from a year ago.)
The numbers mark a significant shift toward higher-end, luxury prices in outer boroughs once known for affordability in comparison to Manhattan. “Both of these overall markets have enjoyed record-setting top-line price numbers for the last two years, but now both of them, like Manhattan, are seeing sliding sales as a function of affordability,” Jonathan Miller, author of the reports, told Mansion Global.
All of the Brooklyn submarkets went through year-over-year increases in median price, and all areas but Northwest Brooklyn hit their own records. The North Brooklyn median price shot up 18 percent to $1.17 million; South Brooklyn rose five percent to $680,000; East Brooklyn went up 8.1 percent to $800,000; Northwest rose 13.6 percent to $1.25 million; finally brownstone Brooklyn saw 12.2 percent gains to a whopping $2.75 million.
Pricing on co-ops and one-three family home prices set records, too, with a median co-op price now at $475,500 and one-three family homes at $910,000. Condo sales slipped for the fourth consecutive quarter, coming in at a median price of $880,000.
Miller dubbed the borough’s market pace “the fastest in New York City.” But as Mansion Global points out, there are a few factors beyond demand causing the rise in prices across the city. They include recent tax changes, which eliminated a key deduction for high-cost mortgages, as well as rising interest rates.
[Via Mansion Global]
RELATED:
