Brooklyn Real Estate Report: SEP 2023

Limited inventory continues to impede overall contract activity.

Brooklyn’s real estate landscape in September 2023 was marked by a tug-of-war between reduced inventory and buyer selectiveness, leading to varied impacts across different market segments. While premium locales and higher-end segments displayed buoyancy, the broader market felt the pinch with increased days on market and high contract activity in select neighborhoods.

Key Highlights: Contract Activity and Inventory Dynamics

  • Significant Drop in Contract Activity:

    • A sharp 36% fall compared to last year, marking one of the lowest in recent years.

    • A notable 24% monthly decline from August, aligning with seasonal expectations.

  • Submarket Variations:

    • Most areas faced major yearly declines.

    • Exception: Williamsburg/Greenpoint with a 21% increase (primarily Greenpoint condo transactions).

  • Diverse Impact Across Price Segments:

    • Sales under $1M: Largest hit, down by 43%, yet still dominated with a 57% share.

    • Over $3M category: Defied the trend, showing resilience.

  • Increased Time on Market:

    • Properties now take longer to sell, with days on market up by 26% year-over-year.

 
 
 

Tight Inventory Brings Negotiability Just Above Asking Price.

In the face of persistent inventory limitations, a substantial 54% of deals closed below the last asking price. Nonetheless, the overall climate of negotiability was slim, with the monthly negotiability factor nudging just slightly above the asking price at 0.3%. This trend isn't new for Brooklyn, as the negotiability factor has stayed below 1% above the last asking price for seven months within the last year.

Key Highlights: Inventory Insights and Pricing Trends

  • Inventory Dynamics:

    • 11% decrease year-over-year.

    • Contrastingly, a 26% upswing since August, surpassing the average seasonal increase.

  • Price Per Square Foot:

    • Encouraging growth, with a 10% rise annually.

    • Upsurge influenced by high-value contracts in Dumbo, Brooklyn Heights, and Williamsburg.

  • Negotiability Stance:

    • Despite a constricted inventory, over half the deals (54%) concluded below the asking price.

    • Overall negotiability remained marginal at 0.3% above ask, maintaining a trend seen in 7 of the past 12 months.