Photo: Robert Clark
After setting a record in the first quarter, Brooklyn home prices slipped in the second quarter as sales slowed.
Still, Brooklyn’s market remained white hot — the second quarter’s price decline was the first decrease following 22 consecutive quarterly increases.
That’s according to a report released yesterday by New York brokerage Douglas Elliman.
“While the Brooklyn housing market continued its blistering pace with near-record prices and chronically low inventory, the intensity of the market eased slightly with fewer sales and more inventory,” says Jonathan Miller, CEO of the appraisal firm Miller Samuel and author of the report..
Compared to the same period last year, the median price decreased by 1.9 percent to $780,000 in the second quarter. The second quarter’s reading was the third highest on record.
Of the last eight quarters, five quarters recorded new median sales price records — one quarter saw the second highest level reached, while two quarters saw the third highest level reached.
Brooklyn’s listing inventory grew by 18.5 percent annually in the second quarter, following 11 consecutive months of annual declines. Inventory was up 30.9 percent from the previous quarter.
Total sales were down 5.7 percent compared to last year in the second quarter.
Yet, despite fewer sales, the sales pace remained lightning quick in the second quarter.
The absorption rate — or, the number of months needed to sell all listing inventory at the current rate of sales — was 3 months in the second quarter. This up slightly from 2.4 months recorded the same time last year.
“For the context of how fast this pace was, Manhattan showed a pace of eight months during the same period,” Miller says.
And although there were fewer recorded sales, the market share of bidding wars rose 4.6 percent from last year to a 27.8 percent share in the second quarter.
Miller defines a bidding war as a sale in which the purchase price exceeds the listing price at the time of contract.
Meantime, the median price of a Brooklyn new construction condo fell by 10.1 percent year-over-year to $860,000 in the second quarter. There were 32.1 percent fewer sales in the new construction submarket during the second quarter.
During the second quarter, units were on the market an average of 171 days, up from 116 days last year at the same time.
New construction condos accounted for 41.2 percent of all Brooklyn condo sales in the second quarter.
Click here to read the entire report.