The Real Deal New York

Brooklyn closings were down 20% in Q3

Total number fell to 1,099, according to Compass report
By Eddie Small | October 17, 2018 11:00AM

550 Vanderbilt in Prospect Heights and 184 Kent Avenue in Williamsburg (Credit: Field Condition)

It was not a great quarter for closings in Brooklyn.

Closings in the borough dropped by 20 percent year over year from July to September, according to a new report from Compass.

The total number of closings fell to 1,099 during the third quarter, split between 574 condos, 373 co-ops and 152 single-family homes. This was largely because of the high number of units at new developments that closed during the same period last year, including 46 alone at 550 Vanderbilt Avenue in Prospect Heights, 42 at 184 Kent Avenue in Williamsburg and 27 at 50 Greenpoint Avenue in Greenpoint.

The median sales price for the third quarter did tick up slightly to $898,000. (Douglas Elliman’s third quarter report had a lower median sales price for Brooklyn, at $808,000.

The number of contracts signed in the borough during the third quarter dropped as well, falling from 814 to 676. That amounted to a 17 percent year-over-year decrease. Single-family homes saw the sharpest decline, falling to 64, for a 20 percent drop. Contracts for co-ops dipped 13 percent to 227, while contracts for condos dropped 18 percent to 385.

Compass did highlight year-over-year improvement in the $2 to $3 million market. A total of 56 units sold in this price range for a 14 percent increase, mainly attributed to rising interest rates that pushed buyers to lock in current financing terms, along with more reasonable price expectations from sellers.

Units in this price range also saw a sharp drop in the amount of time spent on the market, dropping from 140 days to 78 days.