Photo: Steven Pisano/Flickr
Brooklyn’s perennial popular neighborhood of Park Slope reached a new milestone in the first quarter of 2018, finding itself among the top 10 priciest NYC neighborhoods for the first time.
Home prices in Park Slope and several other Brooklyn areas managed to eclipse Manhattan, according to a recent report by the listing site StreetEasy.
Over the last year, the median home price in Park Slope rose 6.6 percent to $1.4 million in the first quarter of 2018 — higher than 19 of the 25 Manhattan neighborhoods analyzed in the report. Brooklyn’s overall median price was $959,000 in the first quarter, up 3.7 percent from last year at the same time.
The Brooklyn neighborhoods of Carroll Gardens, DUMBO and Greenpoint were also among the city’s 10 most expensive in the first quarter of 2018 and based on median sale price, they surpassed some Manhattan neighborhoods like the pricey Upper East Side and the trendy West Village.
New construction luxury condos are having an impact on Brooklyn’s prices, but modestly.
“The widespread demand for affordable homes in Brooklyn is quickly driving up the median sale price in the borough, but because luxury inventory continues to hit the market in droves (particularly in areas like DUMBO and Downtown Brooklyn), price growth remains modest,” StreetEasy Senior Economist Grant Long tells BuzzBuzzNews.
However, the long-term impact of luxury developments on the Brooklyn housing market could be more pronounced.
“It’s reasonable to expect that prices of more Brooklyn neighborhoods will reach those of Manhattan and that those with the means to buy in the city who may have once only considered Manhattan will look to the outer boroughs for more space for their money,” Long says.
And the demand for these new luxury homes will lead to increasing prices of existing homes in what used to be considered affordable areas of Brooklyn, according to Long.
Despite the impending L-train shutdown next year, the North Brooklyn submarket surpassed Northwest Brooklyn as the borough’s most expensive submarket. North Brooklyn prices rose 6.1 percent annually to a record high of $1.1 million in the first quarter as inventory fell 16.3 percent (the biggest inventory decline recorded in the borough).
“While Brooklyn was once an oasis for those priced out of Manhattan, the cost of homeownership in the outer borough is on the rise. Neighborhoods that were once middle-class have become among the most expensive in the city,” Long says in the digital release.
However, those with the means to buy in these areas will still get more for their dollar than in most of Manhattan, Long adds.
Manhattan’s inventory shrunk 11.1 percent since last year to its lowest level since the fourth quarter of 2015, edging the median price up 3.3 percent from last year in the first quarter.
Meantime, the spike in Brooklyn home prices is reflective of the competitive home market buyers will discover entering the spring buying season.
“Overall, 19 percent of Brooklyn neighborhoods in the first quarter of 2018 had a median recorded sale price higher than the Manhattan median. But the median price per square foot in Brooklyn is $700 and remains much lower than the Manhattan figure of $1,400,” writes StreetEasy in the report.
Click here to read the the entire release.