Brooklyn Real Estate Market Report November 2018, provided by the Brooklyn Home Team at Keller Williams Realty Empire. Need help? Feel free to Contact Us anytime.
It’s November and the holiday season is upon us. Three quarters are in the books and we are one month into the last quarter of the year. So far things have remained pretty consistent for most of 2018 and the story, for the most part, has been higher interest rates, lower demand, and growing supply as a result. Home prices are still rising, although at a more modest pace than that of the last few years. All in all, the Brooklyn real estate market is still in demand and as popular neighborhoods become more expensive, home buyers are venturing out to find more value in other areas.
Regarding home sales, they have remained pretty consistent for most of the year. Overall, home sales are down a bit but not drastically. The dip in sales is likely a result of the higher interest rates which have impacted buyer demand in several areas. With that said, in October there 216 residential homes sold, that was up from September sales but down from last October.
As for home prices, the median home price in Brooklyn increased in October and rose again year-over-year. While home prices in Brooklyn have continued to increase for the most part, the pace at which they have been rising has definitely slowed down.
Regarding housing inventory in Brooklyn, the number of homes for sale increased again in October and overall, this year has been a year of continuous month-over-month inventory increases. To put that into perspective, at the beginning of the year in January, we had a total of 1,742 homes for sale and at the end of October, we had a total of 2,019 homes for sale.
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.
Month’s Supply in Brooklyn NY
- Homes on the Market: 2,019
- Homes selling each month: 215
- Month’s Supply: 9.4
What is Absorption Rate? Absorption rate is the rate at which homes sell in a given area during a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. For example, if there are 100 homes listed for sale in a certain area, and 10 homes sold over the last month, then the absorption rate is 10/100 = 10%. Being that closed sales are a lagging indicator, we calculate Absorption Rates using pending sales from the previous month and this gives us better insight as to where the market is right now.
An absorption rate of 20% or higher means that homes are selling quickly and the market favors sellers. Lower absorption rates mean that homes are not selling quickly and supply is much greater than demand, favoring buyers.
Absorption Rate in Brooklyn NY
- Pending Sales Last Month: 28
- Homes on the Market: 2,019
- Absorption Rate: 14%
*Month’s supply and Absorption rate can vary by neighborhood and property type. For a local analysis of your neighborhood, contact us at https://www.bklynhometeam.com/localmarketreport
Check today’s rates at: https://www.bankrate.com/new-york/mortgage-rates.aspx
Brooklyn Home Sales
The Brooklyn Board of Realtors reported Brooklyn home sales at a rate of approximately 216 homes during the month of October. This was an increase of 18 percent from September and a decrease of 10 percent from October of last year
Brooklyn Home Prices
The median home price in Brooklyn rose to $750,000 in October, this is an increase of 4 percent from September, and an increase of 13.6 percent compared to October of last year. The median home price has increased by approximately $90,000 since last year.
Average Home Price in Brooklyn
Last month, the average home price for Brooklyn real estate were as follows:
- Average sale price for a single family home in Brooklyn was: $840,146
- Average sale price for a multi family home in Brooklyn was: $1,132,673
- Average sale price for a condo in Brooklyn was: $606,216
- Average sale price for a coop in Brooklyn was: $323,642
Brooklyn Housing Inventory
There is currently a 9.4-month supply of housing inventory in Brooklyn, this is down from the 11-month supply we had in September, and up from the 8 month’s supply we had in October of last year. Currently, there are 2,019 homes for sale in all of Brooklyn. This is a decrease of 1 percent compared to last month, and an increase of 2.2% compared to October of last year when there were 1,976 homes for sale.
Brooklyn real estate market report provided by the Brooklyn Home Team at Keller Williams Realty Empire.
The Brooklyn Home Team is a group of friendly, service driven real estate agents in Brooklyn NY. Our team members are not only experts at what they do, but more importantly, they are driven by their desire to help people. The team approach is what separates us from the average Brooklyn real estate broker, because while most agents are one person doing several things, we have several agents doing one thing, and being great at it! This ensures expertise throughout all stages of the transaction and allows us to provide the superior level of service our clients deserve. We understand that real estate is a service industry, therefore we treat it as such. Rest assured that when you work with the Brooklyn Home Team, you’ll be in good hands, with people who care 🙂