As the prices in Brooklyn real estate continue to rise, potential home buyers will need to readjust their budget. According to Halstead’s Fourth Quarter 2016 Brooklyn Market Report, Brooklyn real-estate prices reached new heights in the final quarter of 2016.
The report shows the median apartment price rose 16% to $645,000 while the average price for an apartment reached an all-time high on $834,944 in the last quarter. Condos prices rose faster than co-ops, especially in South Brooklyn, where the average price per square foot is $437, 11% more than last year.
The CEO of Halstead Property, Diane Ramirez said, “Both the average and median apartment prices for all sales in Brooklyn were higher in every market area in our report than a year ago.” She also noted that the construction of high-end properties has been responsible for 31% of all Brooklyn apartment closings. These new developments are valued at an average of $1.2 million, which means a 46% increase. Another contributing factor Ramirez pointed out, are the low levels of inventory, especially in areas such as Brooklyn Heights and Park Slope, which has altered not only the prices in those neighborhoods, but throughout Brooklyn.
“Buyers looking for condos under $2 million in those categories [three and four bedrooms especially] to start to explore areas such as South Slope, Greenwood Heights, Prospect-Lefferts Garden, and Kensington, and buy to take advantage of still low interest rates. “says Sarah Burke, managing director of Brooklyn New Development for Douglas Elliman Property Management.
But not everything is bad news here. This is according to Trish Martin, Halstead’s managing director of Brooklyn who says, “New development closings were a key driver of record prices in the fourth quarter, and looking toward the spring we anticipate a strong Brooklyn market across the board and in all areas in the borough.”