Brooklyn’s spectacular residential boom shows no signs of slowing down.
According to the Corcoran Group’s third quarter report on the residential real estate market in Brooklyn, the borough’s average sale price per square foot rose by nine percent market-wide to $693 since this time last year. The average sale price rose by eight per center over Q3 2012 to $662,000.
“It’s been a remarkable year,” said Frank Percesepe, Corcoran’s senior regional vice President for Brooklyn. “There has been extraordinarily low inventory, and there was still very high sales activity.” Percesepe attributes the spike in activity to pent-up demand. The number of closed sales across Brooklyn rose nine percent over last year, to 1,146 — a 16 percent increase over the second quarter of 2013.
Percesepe said he was surprised by the particularly strong growth in BedStuy and Bushwick. In the combined area of BedStuy, Bushwick, Lefferts Gardens and Crown Heights, the average sale price for single-family townhouses rose 67% over Q3 2012 to $1,247 million, while the price of multi-family townhouses rose 42 percent to $940,000. “These neighborhoods are really opening up,” said Percesepe.
Other areas of notable growth were Carroll Gardens, Boerum Hill and Red Hook, where the average sale price for co-ops rose 41 percent year-over-year, and Fort Greene-Clinton Hill-Prospect Heights, where it rose 37 percent. As always, the growth figures for neighborhoods can be distorted by individual transactions and don’t necessarily reflect a market trend.
While growth was strong across northern Brooklyn, southern Brooklyn didn’t do nearly as well. The average sale price for co-ops in South Brooklyn rose seven percent year-over-year, but the average price for condos fell six percent while the price of single-family homes stagnated.
So, strictly speaking, only half of Brooklyn is booming
