Brooklyn Market Report Q4 2020
The Brooklyn residential real estate market continued to showcase its resilience despite challenging external factors. In the face of a global pandemic, a divisive presidential election, and uncertainty all around, the borough largely bucked industry- wide declines and persistently flexed its prominence.
In the last quarter of 2020, sales were only down 10 percent year- over-year, a stark improvement from the start of the pandemic when sales dipped 67 percent in Q2 and 37 percent in Q3.
Despite fewer sales, some notable figures are especially telling of the strength of the market. Contracts
signed jumped by 20 percent in Q4, and the overall median price leaped 10 percent to $880,000 – the highest on record – highlighting strong buyer demand, drawn by reasonable prices and more space. Moreover, the average price per square foot for homes in the $2 million to $3 million bracket range jumped 20 percent higher than in 2019. These figures underscore the prowess of the overall Brooklyn residential real estate market.
Certain areas of the borough were especially noteworthy. Northwest Brooklyn had a large number of new development sales drive its median price upward 11 percent year-over-year, the most of any submarket. South Brooklyn saw
the most sales of all submarkets at 44 percent, followed by Northwest Brooklyn at 29 percent – these numbers speak to buyers looking for more space at attainable prices in the south and new construction deals in the northwest.
Overall, Brooklyn is a prime destination for individuals, families, and investors looking for quality homes with more space at any price point, a testament that external factors have less sway on the borough’s overall market. As the COVID-19 vaccines continue to be distributed in more significant numbers, and as the city returns to a certain level of normalcy, the Brooklyn market will only continue to shine.