Photo: Miller Samuel
Median home prices in Brooklyn have risen annually for the last 5 years in a row.
And while the rate of annual price growth has slowed in recent quarters as inventory is in extremely short supply, it may be premature categorize it as a “slowdown,” says Jonathan Miller, CEO of the appraisal firm Miller Samuel, who published the chart.
Brooklyn’s median price has risen year-over-year for the last 22 consecutive quarters, hitting record levels in five of the last seven quarters. The reason? Consistency, according to Miller.
“The market has been known for its unchecked growth for five years as Brooklyn transformed from a ‘cheaper alternative to Manhattan’ to a ‘destination with global recognition,’” Miller tells BuzzBuzzNews.
Over the last year, Brooklyn’s median price rose 3.2 percent from $770,00 to $795,000, tying the record set in the second quarter of 2017. The rate of growth was over 20 percent in the second quarter of 2017, the highest level recorded over the last five years.
The pace of the Brooklyn market continued to slow after three years of acceleration but still remained at “a blistering pace” in the first quarter of this year, Miller says.
The first quarter of 2018 saw the largest sales decline in nearly three years as inventory continued to fall — there were 10.8 percent fewer Brooklyn homes for sale in the first quarter of this year compared to the same time last year.
The last three quarters have seen annual price growth rates well below 10 percent.
“Affordability pressures in addition to a chronic lack of inventory are restraining sales volume,” Miller says.
Price growth hovered between 10 percent and 15 percent through the fourth quarter of 2012 and the fourth quarter of 2013, before dropping to about 1 percent at the start of 2014.
And, the average rate of growth was 11.5 percent in the quarters between the first quarter of 2015 through the fourth quarter of 2017.
Meantime, as buyers head into the typically busy spring homebuying months, it will be interesting to note the impact of low supply and high demand on price growth in the coming quarter.
“I still think there is room for more near term growth, but it might not be as consistent as prior years,” Miller notes.
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