Residential sales prices in North and Northwest Brooklyn are off to a hot start in 2016, according to Ideal Properties, which reported a 3.7 percent increase in the first quarter of 2016 in its Brownstone Brooklyn and Beyond market report.
“2015 represented a landmark year in Brooklyn, with residential real estate prices reaching new heights. And this trend is continuing in 2016, although predictably, at a slower rate,” said Aleksandra Scepanovic, managing director at Ideal Properties Group. “As we move towards the warmer months of the year, we expect an increase in interest in our cherished borough, surmounting in higher sales prices across all asset classes.”
The quarterly report from the residential firm focused on North Brooklyn, which holds the neighborhoods of the Navy Yard and Greenpoint.
Brooklyn’s Greenpoint neighborhood/Flickr user adamgetsawesome
The report also analyzed the Northwest — also referred to as the Brownstone — section. This area includes Boerum Hill, Brooklyn Heights, Carroll Gardens, Clinton Hill, Cobble Hills, Park Slope, Prospect Heights, Windsor Terrace and the Columbia Waterfront District, as well as parts of Downtown, Dumbo, Fort Greene, Gowanus, Red Hook and Vinegar Hill.
While Brooklyn’s prices showed a slight decrease of 2.4 percent from the prior quarter, seasonality plays an important role in New York City’s shifting valuations, which makes yearly data a stronger placeholder for trends.
Brownstone and North Brooklyn residential properties sold for an average of $1.425 million last quarter.
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The median price in both geographical areas grew 3.8 percent quarter-over-quarter and 6.7 percent year-over-year to reach $1.038 million.
Which category of homes saw the biggest hikes?
Townhouses, Brooklyn’s premiere product, according to Ideal, averaged $2.751 million in price last quarter. Townhome prices increased 5.4 percent year-over-year and 4.1 percent quarter-over-quarter.
Median prices on townhomes also rose to $2.5 million, with Ideal projecting further increases throughout the next three quarters of 2016. The median price currently reflects an 18.3 percent increase from last quarter and a .9 percent increase from last year.
The average price per square foot rose 25.8 percent since last year while the median price per square foot rose 21.4 percent, correspondingly. Townhome price per square foot average reached $1,003, and the median hit $998 in the first quarter of 2016, from a previous average of $892 and median of $822 in the first quarter of 2015.
Co-ops show biggest shifts between quarters
Co-op average sales price grew 10.2 percent between quarters to reach $851,576. Median sales price on co-ops rose just 5.4 percent to hit $706,000, a .7 percent annual increase.
The biggest shifts in co-op price per square foot were showcased in average quarter-over-quarter at 5.5 percent and median year-over-year at 8.4 percent.
In the co-op category, the average price per square foot reached $943 from a previous $909 in the first quarter of 2015. Meanwhile, the median price per square foot reached $895 from a previous $826 last year.
Condo prices over $1 million once again
For the eighth consecutive quarter, condo prices hit beyond the $1 million mark. Nonetheless, the average sales price fell 3.8 percent from the prior quarter’s $1,219,084 to $1,172,778 in the first quarter this year.
The average condo price grew on an annual basis by 4.6 percent. The previous year’s average price was $1,121,675.
Median sale price also grew 4.6 percent quarter-over-quarter. Further, the median sale price rose 7.4 percent from $950,000 in the first quarter last year to $1,019,929 last quarter.
While condo price per square foot decreased 4.2 percent on average and 1.5 percent in the median between quarters — selling for $1,078 and $1,106, respectively — levels increased 7.2 percent and 12.1 percent in both categories since last year to reach well beyond $1,000.
Slower sales for Brownstone co-ops?
Days on the market increased significantly for Brownstone co-ops in year-over-year analysis, showing a 21.4 percent slowdown and an average 119 days on the market.
Townhouses spent an average 122 days on the market, demonstrating a 10.9 percent shift from the first quarter of last year, while condos spent 107 days on the market — a 2.9 percent drop from one year ago.
