Us real estate agents love our data. It guides us in everything we do, from pricing listings, to negotiating deals and identifying areas for investment. Keeping abreast of the market is important for you too, whether you already own property or are looking to buy sometime soon.
With that in mind, here’s a handy cheat sheet of where we’ve been and where we’re headed – a snapshot of the Brooklyn property market, incorporating recent market data from the last quarter of 2016.
- The final quarter of 2016 saw record highs for Brooklyn property.
- The average apartment price reached $834,944 up from $687,701 in Q4 2015, an increase of 21.4%.
- Brooklyn Townhouses also reached record prices, averaging $1,046,951.
- In Brownstone Brooklyn, new development closings in Q4 of 2016 pushed the average condo and coop price to $1,268,001.
- The average townhouse price in Brownstone Brooklyn increased by 5% year on year to reach $2,369,353 in Q4 of 2016.
- Park Slope and Prospect Heights also saw fewer houses selling over asking price, with 7 closed sales in 2016 versus 15 in 2015.
- This echoes the Manhattan property market with buyers agreeing to pay over asking price in just 13% of all sales in Q4 2016 versus 29% a year earlier.
- While interest rates remain at historic lows, rates for 30-year conforming mortgage averaged 4.19% in the week ending January 26th, up from 4.09% the prior week.
- A year ago, 30-year rates were averaging 3.79%.
- Rates have continued to climb since November 2016, alongside increasing expectations of stronger growth and higher inflation.
- Further increases are expected in 2017, which will will have an impact on the Brooklyn market as buyers are beginning to resist higher prices.
- Inventory is expected to increase as we approach spring and we may see a competitive market develop, with buyers motivated by a previous lack of inventory and the desire to lock in lower interest rates.
- Sellers are recommended to price realistically moving forward and buyers should prepare themselves to compete in a faster moving market.
If you’d like to talk further about the market in your neighborhood, you can reach me here.
Click here for the full Q4 2016 report – courtesy of Brown Harris Stevens.