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Brooklyn’s luxury market slumped as in-person showings began

Four properties asking $2M+ found buyers last week

511 Macon Street and 70 Washington Street in Brooklyn (Courtesy Compass; Streeteasy)
511 Macon Street and 70 Washington Street in Brooklyn (Courtesy Compass; Streeteasy)

New York City’s first full week of in-person showings since March didn’t tempt many Brooklyn buyers.

Last week, four homes in the borough went into contract, according to Compass weekly luxury market report, which tracks contract activity among homes last asking $2 million or more. The properties’ combined value was $9.5 million.

The prior week saw six homes go into contract for a total of $17.4 million. The first and second weeks of June saw seven deals inked for weekly totals of $22.5 million and $17.5 million, respectively.

Last week marked the start of phase two of the city’s reopening, which allowed in-person showings to resume. Many in the brokerage community expected an uptick in contract activity to follow reopening.

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The most expensive property to go into contract last week was a six-bedroom townhouse in Bedford-Stuyvesant. The four-story brownstone at 511 Macon Street has a large backyard, 10-foot ceilings and a wood-burning fireplace. The 3,550-square-foot home was last asking $2.75 million and was on the market for a total of 150 days.

The other properties included a three-bedroom penthouse at a five-unit condominium in Greenpoint last asking $2.4 million, a Park Slope co-op with a final ask of $2.1 million and a two-bedroom condo at 70 Washington Street in Dumbo at $2.3 million. The high-end Dumbo building made waves when sales launched for selling private rooftop cabanas for as much as $325,000 a piece.

On average, the four properties were on the market for 121 days and went into contract with a median asking price of $2.3 million.

The average listing discount, the amount final asking prices dropped compared to initial ask, was zero, signalling that the four homes that went into contract last week did not lower asking prices while they waited for a buyer to bite.

Among the brokerage community, many agree that a so-called Covid discount is warranted, though the degree of the markdown is a matter of fierce debate, ranging from 5 to 20 percent off.

Write to Erin Hudson at ekh@therealdeal.com

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Brooklyn