To date, 2016 has been a slightly-mixed-but-recovering bag for sales of residential co-ops and condos in Brooklyn. While most indicators are up year-to-year and over the third quarter of 2015, there was a downward blip in sales overall during the first two quarters of 2016.
According to the recent Corcoran Report for Q3 2016, the median price for Brooklyn condo resales increased 9% over third quarter 2015, and increased 8% over second quarter 2016. The average price increased 8% and 6% respectively.
The median price for Brooklyn co-op resales showed a very positive change of 22% over third quarter 2015, and a 19% change over second quarter 2016. The average price change for Brooklyn co-ops was a positive 18% and 19% respectively.
The figures estimated by the Real Estate Board of New York (REBNY) New York City Residential Sales Report were slightly different, as they include all residential sales, condominiums, co-ops, homes and super luxury condo units in one group. Their overall pattern was the same though, showing an increase over third quarter 2015 with a decrease in second quarter 2016.
Perhaps the most significant change in the market is in inventory. Market wide, the overall number of units available increased by 7% since third quarter 2015, though there was a drop of 4% since second quarter 2016. Specifically, co-op units for resale dropped 3% from third quarter 2015 in a market with overall increases in inventory, particularly new development, which was up by 40% from third quarter 2015. According to the Corcoran Report, “this influx of new development units helped total condo inventory to claim a 58% market share, the highest seen since 2011.”
Overall, closed sales in third quarter 2016 decreased by 19% from third quarter 2015, and 7% from second quarter 2016.
Though third quarter median and average prices as reported in the Corcoran Report increased dramatically from second quarter 2016 by 13% and 22% respectively, they made even bigger gains year-over-year with a median price increase of 18% and an average price increase of 27% over third quarter 2015. The bad news is that there was a substantial drop in prices earlier in the year but the good news is that the market appears to have regained its footing. Prices overall are much improved.
From a neighborhood perspective comparisons are all over the board. Trish Martin, managing director of sales, Brooklyn, for Halstead Property says “the average apartment price rose by 12%, with some areas seeing as much as a 14% increase and others as low as 3%.”
South Brooklyn had the largest decrease in
sales but is tied for the largest increase in average price per
square foot with Brooklyn Heights/Cobble Hill/Dumbo/Downtown. According to the report, the
Brooklyn Heights/Cobble Hill/Dumbo/Downtown neighborhood garnered 20% market share this year's third quarter "but had just 9% of total Brooklyn inventory."
A slight dip was reported in new development closings over last year. But new development inventory has increased 40% over third quarter 2015. “Fueling the rise in inventory were large scale new development introductions such as Austin Nichols House,” the report states, “which is the largest project to launch for sale in Brooklyn since 2008.”
”With the distraction of the election, which is now behind us,” says Martin, “buyers were more thoughtful about the speed at which they submitted offers on co-ops and condos. But that pace is picking up.” Conditions seem favorable for 2017.
Read the update on Manhattan sales 3Q 2016 here.
A.J. Sidransky is a novelist and a staff writer for The Cooperator and other publications.