Brooklyn Market Report Q3 2019
After many quarters of growth, Brooklyn has slowed down. The rush to beat the July 1st Mansion Tax hike helped bolster sales in the second quarter, but that fuel was not available this time around. The borough’s housing market continued settling in response to economic pressure, fewer properties on the market, and higher prices.
3,022 sales were seen this quarter, a modest 2% decline compared to the 11% drop seen in Q3 2018. As with Manhattan, this decrease is more appropriately deemed a stabilization, evidenced by slowing rates of decline. High levels of inventory and many new developments in Brooklyn the last few years gave buyers excellent purchasing opportunities. Those opportunities still exist, but are getting harder to find.
Prices continue to creep upward as Brooklyn expands vertically. Median and average prices remain near their all-time highs from Q2 2019, while properties priced under $500K reached their lowest levels this quarter and those $500K-1M saw their highest. This change in price distribution was met with an increased time on the market. The percentage of properties entering contract after 180 or more days was the highest since Q2 2012.
As we brace for trade agreements, and endure ongoing global political uncertainty, we anticipate the end of the year to continue trends seen this quarter. Buyers have fewer properties to consider, while sellers are deciding if now is the right time to put their home on the market, leading both sides to simply wait.