Why Brooklyn home sales prices rose in bleak third quarter

TRD New York /
Nov.November 30, 2011 01:49 PM

Median home sales prices in Brooklyn rose 5 percent in the third quarter of 2011, according to Prudential Douglas Elliman’s Brooklyn quarterly survey of sales, as The Real Deal previously reported. BrickUnderground.com has some theories as to why the borough saw price increases in a relatively bleak quarter that saw flat prices in Manhattan.

Aside from the obvious — affordability, driven in some measure at least by condominiums built with tax abatements — the factors behind Brooklyn’s sales numbers, BrickUnderground said, include less-crowded elite schools, vibrant small businesses and, of course, the best views of Manhattan you can get without living in Hoboken.

Further, the difficulty in getting into a co-op in Manhattan — both financially and socially — has many buyers looking to Brooklyn, where both condos and co-ops are not just cheaper but easier to purchase.

“Nowadays co-ops have stricter debt-to-income ratios and require more liquidity after closing,” Jeffrey Nolan, senior associate at the Corcoran Group told Brickunderground. “So while co-ops appear less expensive based on price-per-square foot, they may now require more income and more liquid assets than a condo.”

The third quarter in Brooklyn also showed the number of sales up 18 percent year-over-year — the second highest quarterly total tallied in the last three years. [Brickunderground.com]


Related Articles

arrow_forward_ios
49 East 10th Street and Barbara Corcoran (Credit: Google Maps and Getty Images)

Corcoran to shut down office in building partly owned by Barbara Corcoran

Corcoran to shut down office in building partly owned by Barbara Corcoran
Corcoran President & CEO Pamela Liebman (Credit: Corcoran, Getty Images)

Welcome to Queens: Corcoran opens first borough outpost

Welcome to Queens: Corcoran opens first borough outpost
Corcoran CEO & President Pamela Liebman (Credit: iStock)

Corcoran begins new lead-gen push via Facebook ads

Corcoran begins new lead-gen push via Facebook ads
Brooklyn’s home sales dipped in Q3, but the median home price was above $900K (iStock)

Brooklyn home sales drop by 57%, but prices rise

Brooklyn home sales drop by 57%, but prices rise
1491 Bedford Avenue and 25-98 36th Street (Google Maps)

Muted week for middle of the i-sales market

Muted week for middle of the i-sales market
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
198 Washington Park in Fort Greene (Photos via Compass)

Fort Greene townhouse, 30 feet wide, led Brooklyn luxury sales last week

Fort Greene townhouse, 30 feet wide, led Brooklyn luxury sales last week
Gov. Andrew Cuomo (Getty, iStock)

New York lost $755M in real estate tax revenue this year: REBNY

New York lost $755M in real estate tax revenue this year: REBNY
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...