BROOKLYN | FOURTH QUARTER 2023

1932 map showing land uses in the Lower East Side @nycurbanism

“While it is too early to tell if the market has turned a corner, the fact that contract activity improved amid record-low inventory proves Brooklyn is still an incredibly in-demand and competitive market. Though closed sales fell in 2023, many properties representing good value received multiple offers, and pricing remains robust. 

As we enter 2024, the forecast of lower mortgage rates and a solid economy may inspire an earnest rebound in the Brooklyn market. This quarter’s results paint a cautiously optimistic backdrop as we head into what’s sure to be a dynamic 2024.”

- Michael Sorrentino, SVP, General Sales Manager, NY

If you would like to talk more about real estate, feel free to book time directly on my calendar.

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THE CORCORAN REPORT: QUARTERLY
BROOKLYN | Q4 2023

Though the Brooklyn market started 2023 with the challenges of high mortgage rates, record-low inventory, and pricing pressure, the end of the year saw marked improvement after closings fell less than previous quarters, signed contracts improved, and days on the market were on par with the stronger market of a few years ago. As mortgage rates settle and the economy is on an upward arc, there is cautious optimism heading into 2024.

  • Closed sales moderated annually for the seventh quarter in a row, the first time since Corcoran started reporting over 15 years ago.

  • Sales fell close to 30% YOY to approximately 1,100 closings, making 4Q 2023 the slowest fourth quarter since 2012.

  • On a positive note, the number of contracts signed was up 16% QOQ and 3% annually, marking the first-time signed contracts improved in two years.

Which product type accounted for 43% of the 1,076 sales in Brooklyn's fourth quarter?

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Price statistics in Brooklyn reflected inventory constraints, high mortgage rates, and buyers’ search for value. Those ready to purchase a home in Brooklyn turned to resale co-ops and locations farther east and south, resulting in a decline in median price and average price per square foot. 

  • Prices are now below where they were during the red-hot market of 2021 through early 2022 and are level with their five-year historical averages.

  • The median price fell 3% YOY to $725K.

  • The average price declined 5% to $968K this quarter, the second-lowest figure in nearly three years.

  • With increased activity under $350K, re-sale co-op median price fell 2%, but, with an uptick in sales over $1M, resale condos saw median prices jump 3% YOY.

  • Fewer new development transactions in high-priced neighborhoods drove New Development price figures down, with median price and average price per square foot dropping 3% and 7% YOY, respectively.

It’s too early to tell if the market has turned the corner, but as deal activity improved even with record-low inventory, Brooklyn, with its endless appeal, proved the depth of its demand.

  • Inventory fell for the ninth consecutive quarter, down 22% YOY to 1,262 listings. Listings priced between $500K to $750K fell by 40% annually, while listings for homes between $1M and $2M rose 2% YOY. Inventory also fell across all unit types, with studio supply down 43% YOY.

  • All product types are undersupplied in Brooklyn due to post-COVID dynamic activity, a drop in new development launches, and sellers locked into low mortgage rates.

  • Days on market fell below the five-year historical average, with sales between $750K and $1M falling 21% (or by 16 days).

Which price range in Brooklyn had the largest inventory among active listings in Q4?

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If you would like to talk more about real estate, feel free to book time directly on my calendar.

Happening Around the Borough

Winter Jazzfest
Winter Jazzfest is NYC's annual celebration of contemporary jazz music, hosting an array of global artists across venues throughout the boroughs. From intimate club settings to larger concert halls, this festival captivates audiences with its diverse lineup and vibrant energy, making it a must-attend event for jazz enthusiasts and music lovers alike. Check out the full lineup and purchase your tickets at the link below.
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The Winter Show
The Winter Show, a prestigious art, antiques, and design fair, returns on January 19th for its 70th annual year at the historic Park Avenue Armory. Showcasing exceptional works from a wide range of cultures and time periods spanning 5,000 years, The Winter Show is celebrated for offering a unique blend of historical depth and contemporary sophistication. To learn more about the event and to purchase tickets, follow the link below.
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MLK Day of Service
Martin Luther King Jr. dedicated his life to service and helping others. Since King's birthday was first observed, it's been a tradition for people across the country to devote the day to service. On January 15th, we can all honor his memory, and take this day to volunteer and give back to those in need. Click on the link below to find an opportunity to volunteer in your local area.
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Best Spas Around in NYC

Indulging in a visit to the spa in January may be exactly what you need after the holidays. It not only offers an escape from the winter chill but also provides a rejuvenating experience to kick off the year feeling refreshed and invigorated. Luckily, New York City is a haven for all types of wellness hubs. Here are some of our favorite locations around the city.

All information contained within this document is intended for informational purposes only and is sourced from sources that are considered reliable. Although the information is believed to be accurate, it is presented subject to omissions, errors, modifications, or withdrawal without prior notice. This is not intended to solicit property that has already been listed. Equal Housing Opportunity.

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