Welcome to the First Edition of the BOND Report
Brooklyn is internationally celebrated as having the coolest neighborhoods in the nation, and many believe it offers a wider variety of options for self-expression, individual lifestyle, and entertainment than Manhattan for similarly-situated home buyers. In fact, Brooklyn’s average pricing is currently between 27% and 49% less expensive for studios, one, and two bedrooms than Manhattan in most areas. This report shows the average home price in Brooklyn in the second quarter of 2024 to be $1,095,994, while Manhattan’s average for the same period was $2,051,118. Brooklyn’s median home price was $840,000, compared to Manhattan’s $1,152,040. At least 595 home sales in Brooklyn in Q2 were priced below $840K. It’s no surprise, then, that lots of buyers are starting their search in Brooklyn, bypassing Manhattan altogether!
One contextualizing factor is that Brooklyn’s supply has remained limited for the past year. The number of active listings decreased in 2023 as mortgage interest rates climbed above 7 and even 8 percent, and they never really increased even as mortgage rates settled back into the mid 6% range by mid-2024. Active listings for sale were only 1% below Q1 of this year, but they were 10.5% lower than the same period in 2023, just before the Fed raised the base lending rate above 5%.
As many economic indicators pointed towards cooling inflation, enough buyers were eager to enter the market to help increase the number of pending sales by 14.71% for the year. A five year lookback reveals Q2 to be the lowest volume period for sales since 2020. Many buyers have positioned themselves on the sidelines with cash, ready to reenter the market once the Fed officially lowers interest rates; as such, many would-be home sellers have waited to list their properties until the market showed signs of higher demand, higher listing volume, and higher contract volume – and all of Brooklyn will undoubtedly experience the frenzy sure to follow such a protracted period of low listing and low contract activity.
Prices remain robust for Brooklyn, despite the overall economy– Average condo prices throughout the borough were $1,290,390 (compared to $3,006,102 in Manhattan), and coops averaged only $673,190 (compared to $1,306,943 in Manhattan). For the year, there were almost 17% fewer condo listings on the market, and 20% fewer coops since Q2 2023.
The neighborhoods with the most activity included Brooklyn Heights, Cobble Hill, Fort Greene, and Park Slope, with the most closings completed for two bedrooms and larger homes proving what we already knew – Brooklyn represents the opportunity for home ownership at more affordable levels in areas that offer (in many cases) more personal space, more open space, and many beautiful neighborhoods replete with historic architecture and modern conveniences.
BOND New York has been part of the Brooklyn community for decades, and recently, we’re proud to have launched our first neighborhood real estate resource center at 713 Lorimer Street, on the border of Williamsburg and Greenpoint. Stop by, call, or email us today to discuss how we can help market your masterpiece or locate your ideal Brooklyn home.
