Sales are heading east in Brooklyn.
A newly released real estate report shows that despite a slowing home sales market in the borough, one neighborhood is showing historic growth.
Both the Brooklyn and Manhattan markets are not as competitive as they have been in recent years, according to the January 2016 StreetEasy Market Reports. Though sale prices continue to increase, they are doing so at a smaller rate, as homes are also spending more time on the market than in recent years.
But one market, East New York, led Brooklyn’s price growth, where the median resale price grew 25.3 percent year-over-year to $494,564 – “the highest annual growth recorded in any submarket in StreetEasy’s history.”
In Manhattan annual resale price growth has been slowing since December 2012, rising 5.3 percent year-over-year in January to $991,468. Brooklyn’s monthly resale price growth has been slowing since July 2015, rising 8.5 percent year-over-year in January to $540,186.
The median time on the market in Manhattan was 90 days, the longest amount of time recorded since January 2013, according to StreetEasy, while in Brooklyn, the median time on the market was 85 days – an increase of 18 days year-over-year.
The luxury market was also not immune to this slowing pace, with Manhattan’s seeing “seven consecutive months of price decline after peaking in May 2015 at a median price of $3.27 million. By December 2015, the median price fell 0.3 percent to $3.26 million.”
“Sales and rent price growth are stabilizing across Manhattan and Brooklyn,” said StreetEasy data scientist Alan Lightfeldt. “Sellers in this market may discover that they cannot set prices and expectations high with the anticipation of a quick sale. The market is starting to look more like 2013, a period of stable growth prior to the surge of 2014 and 2015.”