Brooklyn Q4 2016 Report
The 4th Qtr. 2016 saw continued 2016 trends of record sale prices achieved and challenged inventory levels – less availability at the lower end of the market and increased inventory at the high end.
Contracts signed this quarter were almost level with the previous quarter, but market-wide closed sales and contracts signed were lower this quarter than a year ago.
Closed sales, which reached an all-time high in the fourth quarter of 2015, declined 26% in the fourth quarter of 2016. Contracts signed were 1% less than 3rd Qtr. 2016 and 12% below a year ago.
Inventory played a role in the softening of sales this quarter. Despite a 13% market-wide overall increase in inventory to 2,267 units, the persistent lack of inventory at the lower end of the Brooklyn market continued in the 4th Qtr. The number of available resale co-ops – Brooklyn’s largest property category with generally more accessible and affordable prices – had little inventory gain, increasing just 2% vs. a year ago and resale condominiums declined 5% compared to last year. This was a significant barrier for buyers looking to enter the market and for buyers looking to move up to larger properties.
4th Qtr. 2016 average and median sale prices both rose year-over-year by 33%, to record levels: $908,000 (average price) and $732,000 (median price). This reflects the effect luxury new development closed sales had of driving prices upward this quarter.
The new development sector had the highest sale prices this quarter. The average new development sale price rose 45% to $1.54 million and the median new development sale price rose 14% to $950,000.
Brooklyn’s new development inventory rose a dramatic 96% in the 4th Qtr. 2016. The number of new, development properties, generally priced at the higher end of the market, almost doubled compared to 4th Qtr. 2015, increasing from 289 units to 566 units.