Brooklyn Real Estate Summary for Q2 2023
While some challenges persisted in the Brooklyn market, Second Quarter 2023 welcomed an encouraging rebound from the start of the year. However, inventory fell to one of its lowest levels in the past decade, leaving buyers with limited options. Closings were down significantly from last year, though settled to the long-term average pace of sales.
There were nearly 1,400 closings in Second Quarter 2023, a 39% annual decline, while sales volume fell by a similar 41% to $1.463B. Last year, closings were elevated to a near-record amount as buyers took advantage of very low mortgage rates, exaggerating the percentage declines. Compared to First Quarter 2023, sales were up 22%, a greater rise than historically seen between first and second quarters. Contract activity also fell versus Second Quarter 2022, but the 19% drop was less than the decline in closings.
The number of available listings shrank 21%, the seventh consecutive quarter with an annual decrease. With the exception of the 2020 market pause, inventory reached its lowest point since early 2014. Second Quarter 2023’s annual decrease in listings could be seen across all product types and in nearly all submarkets. Would-be sellers with more favorable mortgage terms continued to hold rather than list, and very few new developments opened for sales.
Median price fell to $775K, the fourth consecutive quarter of yearover-year decline due to increased buyer activity at lower price points. Though average price slipped annually, a robust luxury market propelled the figure to $1.058M, the second highest on record. Numerous penthouse and high-floor sales in prime locations helped average price per square foot obtain a new high.
Brooklyn Real Estate Sales Data for Q2 2023
Second quarter closings declined 39% compared to Second Quarter 2022, one of the strongest quarters on record. Nevertheless, sales increased 19% quarter-overquarter, a trend typical of market seasonality.
Due to fewer sales, sales volume fell 41% year-over-year but increased 34% quarterover-quarter to $1.463B.
Compared to First Quarter 2023, which was the second slowest quarter since 2014, contract activity jumped 36%, a greater increase than is typically seen between first and second quarter. However, the number of contracts signed declined 19% compared to Second Quarter 2022, when an exceptionally high number of contracts were signed relative to the last ten years.
New development was hit hardest with the annual decline in closings due to limited supply, dropping 44%. However, all three product types increased quarter-over-quarter. Resale condominium sales jumped most significantly compared to First Quarter 2023, increasing 58%.
Average days on market increased by just one day year-over-year to 85 days.
Brooklyn Real Estate Inventory Data for Q2 2023
The number of listed apartments decreased 21% year-over-year and 2% quarterover-quarter. Second Quarter 2023 had the second lowest overall inventory in twelve quarters. Excluding 2020 when inventory dipped due to the market pause, this was the second lowest inventory figure since the beginning of 2014.
Compared to the recent inventory peak in First Quarter 2021, inventory was down 37%.
Listings decreased 2% from First Quarter into Second Quarter 2023, a change that is typical of market seasonality. Inventory decreased or stayed the same from first quarter into second quarter seven of the last ten years with an average 2% decline.
Inventory declined in all price segments. The $500K to $750 range decreased most significantly, falling 26% year-over-year. The $1M to $2M segment had the smallest drop and had the largest number of listings in the borough this quarter.
Listings declined across most areas except Carroll Gardens, Boerum Hill & Red Hook, where inventory increased 39% annually due to a jump in resale listings. Park Slope & Gowanus declined most significantly with 45% fewer listings.
Inventory fell across all unit types. Studio inventory declined most significantly, falling 34% year-over-year.
Brooklyn Real Estate Pricing Data for 2nd Quarter 2023
Brooklyn median price decreased 6% year-over-year to $775K. The share of sales below $750K expanded as higher borrowing costs likely caused price sensitivity in the market.
Overall average price fell 4% annually but increased 10% quarter-over-quarter to $1.058M. The decline was versus a record high figure in Second Quarter 2022, which was skewed by a higher share of sales over $2M.
Overall average price per square foot increased both annually and quarterly. All product types saw annual and quarterly increases in average price per square foot. New development, which typically already has a high price per square foot, increased more significantly than the other unit types, jumping 9% year-over-year.
Resale co-op median price fell 4% because the share of sales under $350K expanded compared to Second Quarter 2022.
Resale condo median price and average price per square foot each rose 2% yearover-year as an increased share of sales occurred between $1M and $2M.
New development absolute price metrics fell annually but average price per square foot increased 6% to $1,376, exceeding $1,300 for the second time ever. Median price decreased 13% because the share of new development sales from $500K to $750K grew substantially while all price segments above that shrank.
Looking for a Top Brooklyn Real Estate Agent?
Craig Yoskowitz is a seasoned agent with Corcoran in Park Slope who knows how to navigate the fiercely competitive New York City real estate market. With extensive knowledge and experience, he skillfully guides buyers and sellers through every twist and turn, offering confidence, warmth, and the fortitude to get deals closed.
