August 2023 Brooklyn Real Estate Sales Report:
Contract Activity Declines While Listings Sit on the Market Longer
Contract activity fell 26% versus a year ago to the second lowest number of overall monthly sales in 2023. The 17% monthly decline in contract activity was atypical - activity increased from July to August in three of the last four years.
Though most of the submarkets exhibited double-digit year-over-year declines in contracts, two neighborhoods experienced increased activity. Bed-Stuy/Crown Heights/Prospect Lefferts Gardens/Bushwick increased the most, up 8% annually, due to a rise in new development sales.
Contracts fell across all price segments, but the $2M to $3M range was hit hardest with fewer than half as much activity compared to a year ago. Sales under $1M declined 30% but continued to hold the largest share of sales at 58%. Days on market jumped 30% year-over-year, reaching the highest number of days since February.
Jacob Riis Park, Brooklyn
Negotiability Persists Despite Waning Inventory
Inventory dropped 27% compared to last year and 7% compared to the previous month. Inventory typically experiences a slight decrease from July to August, but this year’s monthly decline exceeded the 2% average of the past four years, impacting an already challenging market.
Average price per square foot increased 2% annually due to increased sales in high-priced neighborhoods like Williamsburg and a surge in new development sales in Crown Heights.
Despite ongoing inventory constraints, 51% of deals sold below the asking price, leaving negotiability slightly over 1% below the asking price. Only two other months in 2023, January and April, witnessed a similar number of transactions below the last asking price.