Brooklyn Real Estate Market Booming According To Recent Report
A new report shows that Brooklyn’s real estate market is doing well across the board, including in previously less desirable neighborhoods. NY1’s Jill Urban filed the following report.
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The Brooklyn real estate market is booming according to the numbers released in a new report by Prudential Douglas Elliman.
“It fared very well. Actually, it fared the best it has since Lehman Brothers went down. A lot of markets did well this quarter, so it wasn’t just Brooklyn, but Brooklyn did exceptionally well,” says Dottie Herman, president and CEO of Prudential Douglas Elliman.
The report shows that since last year, sales are up borough-wide by a whopping 18 percent and prices are up about five percent from this time last year. Now, the average price for a home in Brooklyn is just over $600,000.
Jonathan Miller of Appraisal Firm Miller Samuel generated the report. He says the biggest jump in the Brooklyn market comes from new development.
“I think the biggest thing is really new construction sales. It’s really getting traction over the last two or three quarters. This quarter was no exception. We are seeing more sales and larger units moving,” says Miller.
The report also finds activity is up in one to three-family homes, which are a large part of the borough’s housing stock.
It wasn’t just the hot neighborhoods in north and northwest Brooklyn that contributed to the surge, either. Miller says eastern areas like East New York, Bed Stuy and Cyprus Hills, which have often lagged, also saw an uptick in prices and sales activity.
“I think one of the more immediate reasons for the improvement is the hot rental market in Manhattan. Rising rents are driving people with record low mortgage rates to make that rent versus buy decision and are looking at their options in Brooklyn, and part of that is also that we’ve had a real surge in the last few quarters of foreign buyers and that’s really helped the condo market,” says Miller.
Herman says the numbers also reflect how people are no longer choosing Brooklyn because it’s a cheaper alternative to Manhattan. She says Brooklyn has truly become a hot destination, especially for those who may have once considered the suburbs.
Click here to view the full report.