Appetite for Brooklyn Homes Remains "Insatiable"

The appetite for homes in Brooklyn remained “insatiable” during the third quarter of this year, according to a new report from the real estate brokerage Douglas Elliman, with Queens in hot pursuit.

Brooklyn's median sales price – representing the midpoint of the market – rose 7.5 percent over the past 12 months to $790,000, DNAinfo reports. It was the 20th consecutive quarter of year-over-year price growth, dating back to 2012, when the city’s real estate market began to recover from the debacle of 2008. 

"I wouldn't say condos are in short supply, but there's not a flood," says Jonathan Miller, author of the Elliman report. “The only time a condo doesn’t sell quickly is because the sales price is too high, not because of the demand."

Nearly a quarter of the homes in Brooklyn sold for above the asking price – double the rate in Manhattan. “It just shows you the intensity in Brooklyn,” Miller says. “There’s more room for price growth as long as sales remain heavy.” 

The number of deals in Brooklyn jumped 31 percent in the third quarter compared to the same time a year ago even though there were 13 percent fewer listings overall, according to a report from the brokerage Corcoran. "This quarter the insatiable demand for homeownership in Brooklyn was confirmed," the report states. 

New development helped prop up the borough's market, with the number of closings skyrocketing 132 percent in several fancy new large condos, such as Prospect Height’s 550 Vanderbilt, Sheepshead Bay’s Vue Condominium, 251 First St. in Park Slope, and Williamsburg’s Austin Nichols House. 

Brooklyn had some company. The median sales price in Queens hit a record $550,000, up more than 10 percent from the same time a year ago, the Elliman report found. “Queens is joined at the hip with Brooklyn,” Miller says. “There’s a lot of pressure in Brooklyn, and in a sense [Queens] provides some relief for people seeking affordability. But in its own right, it’s setting new records."