Even in the face of a cooling market for overall sales activity, Brooklyn’s townhouse market is looking strong as sales prices continue to rise.
According to Corcoran’s first-ever standalone Brooklyn townhouse report, the average price per square foot was $774 in 2016, vs. $740 in 2015, an increase of 5 percent. There was a jump in the median price from $1.6 million in 2015 to $1.75 million in 2016, an increase of 9 percent, and the average sale price rose 1 percent in the year to $2,064,243.
Corcoran’s report covered north and northwest Brooklyn as well as Crown Heights, Bed Stuy, and Bushwick. The study also indicated the actual number of townhouses sold was down 5 percent, from 785 in 2015 to 742 in 2016. In addition, nearly half (47 percent) of sales fell in the $1 million to $2 million-dollar range in 2016.
In an email accompanying the report, Patricia Laligant, a Corcoran broker said, “The Brooklyn townhouse market is more diverse, more sprawling, and more active than its counterpart in Manhattan… In fact, twice as many houses sell in Brooklyn annually than are traded in any other borough.”
Sales activity increased in Bed Stuy, Crown Heights and Bushwick, which maintained over 40 percent of the market share and were the most active areas in the study. The average price for townhouses in these neighborhoods jumped 12 percent to $495 in 2016.
The report reflected a ton of flipping in Bed-Stuy during 2015. “In rapid succession, hundreds of all-cash deals priced under $500,000 occurred. A few months later, many of them resold for slightly higher prices to other investors coming later to the game, then sold again for well over $1 million after upgrades were made,”
On the opposite end, sales declined in neighborhoods such as Brooklyn Heights, Cobble Hill, Downtown Brooklyn and Dumbo. There were only 12 townhouse sales in those areas in 2016, vs. 32 sales the year before, a drop of 62 percent. Price per square foot was up 15 percent to $1,552, however.
The report also differentiated between single-family and multi-family residences. Single-families dropped in both median price and the number of closings, but price per square foot rose 5 percent from $1,130 to $1,181. While multi-family homes were down 6 percent against the same period in 2015. The price per square foot and median price both rose, with median price hiking over 10 percent.
Sales in multi-family homes were either flat or declined in the major part of Brooklyn. In contrast, single-family home sales were up in Williamsburg, Greenpoint, Carroll Gardens, Red Hook and Bed Stuy, among other neighborhoods.