Brooklyn Real Estate Market Report AUG 2019. Courtesy of the Brooklyn Home Team at Keller Williams Realty Empire in Brooklyn NY.
Summer is almost over and a lot of people seem to be taking their end of Summer vacations. On the real estate side, things do tend to slow down a bit in August but all in all we have remained pretty busy. Our listings have been showing consistently, however, offers have been pretty scarce. All in all, we are seeing a market where the mindset has shifted. Buyers seem to think that the market is on their side, and as a result, they don’t seem to be as motivated as they were in years past. The numbers reflect this as well because home sales have been consistently below year ago levels for most of 2019. In July, homes sales were actually 14.1% below that of July 2018. This is not due to a lack of supply because inventory was actually lower at this time last year.
As for home prices, the median home price in Brooklyn dropped by 11.5% in July. In comparison to July of 2018, the median home price was down 4.3%.
Regarding interest rates, they’re still extremely low so if you are in the market to buy or refinance, now is the time. We’ve actually spoken to several mortgage lenders and they all say that their refinances are up big time. As for home buyers, the difference now is that even with these very low interest rates, we aren’t seeing a huge spike in demand or sales activity. We do see a lot of buyers out there looking, but they don’t seem to be making a lot of offers. This can be because buyers are being more picky, cautious, and it can be because they are trying to get a deal.
Lastly, regarding the inventory levels in Brooklyn, there are currently 2,188 homes for sale. This is higher than 2018 levels, but not by much. Month’s supply in Brooklyn is currently at 11.7 months. This means that the market is in favor of Buyers (i.e. buyer’s market). So, if you’re in the market to buy, you should find yourself in a good position. Don’t worry too much about the media news or speculation of where prices will go in the future, if you like a property, just make sure you’re paying a reasonable price that is in line with the comps. If you’re in the market to sell, the current market simply means that you have to price closer to estimated market value and you have to be very mindful of your direct competition.
We’ll continue to watch the market and keep you posted.
What is Month’s Supply? Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. For example, if there are 50 homes on the market and 10 homes selling each month, there is a 5 month supply of homes for sale.
Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.
Months Supply in Queens
- Homes on the Market: 2,188
- Homes selling each month: 187
- Month’s Supply: 11.7
Market in favor of: [ x ] Buyers [ ] Sellers [ ] Balanced
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Brooklyn Home Sales
The Brooklyn Board of REALTORS® reported home sales at a rate of 201 in July, that’s UP 2.5% from June and DOWN 14.1% compared to July of last year. Specifically, single family home sales are down 6.4%, Multi Family home sales are down 26.8%, condo sales are up 15.6%, and coop sales are down 20.7% compared to July of last year.
Brooklyn Home Prices
The median home price in Brooklyn was $675,000 in July, that’s DOWN 11.5% from June, and DOWN 4.3% compared to July of last year. Specifically, single family homes prices are up 5.5%, multi family home prices are down 10.9%, condo prices are down 7.9%, and coop prices are up 5.8% compared to July of last year.
There was a 11.7-month supply of housing inventory in July, that’s UP from the 11.5 month supply we had in June. There are currently a total of 2,188 homes for sale in Brooklyn. The total number of available homes for sale in Brooklyn has increased by 5.8% compared to July of last year.
*The opinions expressed in this Brooklyn Real Estate Market Report are intended to supplement opinions on real estate expressed by local and national media, local Brooklyn real estate agents and other expert sources. You should not treat any opinion expressed on this report as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. The Brooklyn Home Team at Keller Williams Realty Empire does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. The Brooklyn Home Team will not be liable for any loss or damage caused by your reliance on information contained in this report.