As the first quarter comes to a close, it’s time to cast our focus outside of Manhattan for a beat and look at what’s been going on in Brooklyn. The numbers, to those who haven’t been paying attention out there, have been staggeringly strong.
Take a look:
Source: Miller Samuel/Douglas Elliman
What does this mean?
You can see the granular data for yourselves in the table above, but just look at the New Signed Contracts line at the top for the punchlines:
Condos:
- Feb 2021 – 263 signed contracts
- Feb 2020 – 109 signed contracts
Coops:
- Feb 2021 – 169 signed contracts
- Feb 2020 – 73 signed contracts
1-3 Family Houses:
- Feb 2021 – 167 signed contracts
- Feb 2020 – 39 signed contracts
In other words, Brooklyn is on fire. And it has been for months now. Expect prices to rise there as supply has not been commensurate to contracts signed.
As a side note, rentals have been similarly hot, with the number of leases signed up 133% in Brooklyn over the same month (February) as a year ago.
Other Takeaways For Buyers and Sellers
Buyers are paying up for renovated apartments. So if you are a seller, take the time to do those minor kitchen and bath renovations.
It’s harder and more expensive than ever to do renovations due to high demand, expensive materials, and building restrictions. This is showing up in demand and pricing for renovated apartments.
Mansion Global reports “Manhattan Homes Priced in Line With Market Averages Sell Within One Month”
Sales data from the past two years show that units asking much higher than average prices turned off price-sensitive buyers. They took more than 120 days to sell, and had a median listing discount—the discount of the sales price compared to the original listing price—of 11.5%, according to the report to be published next week.
On the other hand, units priced more in line with the market average sold in less than 30 days, and had a median listing discount of 1.9%.
Homes that closed within 30 to 60 days on the market had a median listing discount of 4%, and those spending 90 to 120 days on the market had a median listing discount of 10%, according to the report.
The takeaway is that accurate pricing (= not “aspirational” pricing) is the name of the game. Data shows this strategy will sell your home quicker and for much less of a discount.
In conclusion, we leave you with these thoughts. The pace of the market in both Manhattan and Brooklyn is picking up. Sellers in these markets are, in general, not distressed and sellers are patiently waiting for the time to list their apartments. That time may well be now, with demand surging and a relative dearth of inventory being the market conditions across the board.
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