The New Coney Island - Brooklyn's Times Square by the Sea

Thursday, April 9, 2015

NY Mag - Forget Manhattan. Brooklyn’s Real-Estate Market Is on Fire — and It’s Not Cooling Off Anytime Soon.

Excerpt -

Manhattan may still think it's the older, more established sister of sweet, charming Brooklyn, but the most recent real-estate market reports have given it a reality check. According to Douglas Elliman's first-quarter survey released today, Brooklyn's prices continue to break records, with the median now at $610,894, a 17.5 percent jump from 2014. (The average price, $749,269, increased by 10 percent.) Meanwhile, Manhattan saw its numbers plateau in the same period.

In all the years he's been tracking Brooklyn data, appraiser Jonathan Miller, who prepared the report, says last quarter represents the apex for the borough. "Brooklyn is the only borough, median-sales-price-wise, to be higher right now than the pre–Lehman Brothers high-water mark before the financial crisis began," he says. (Brooklyn's median was $545,000 in the third quarter of 2007.) In comparison, Manhattan's median sales price last quarter was close to the prerecession peak, but not above it.

Properties are selling faster here, too: an average of 112 days, down 14.5 percent from last year. One- to three-families saw the biggest improvement in median prices, surging by nearly 27 percent in the same period to $747,000.
This despite inventory expanding by 5.8 percent (though it's still fairly tight). "It's been spectacular. The minute [new inventory] hit the market, if [properties] were good, there were amazing bidding wars and open houses were jam-packed," says Frank Percesepe of the Corcoran Group, which saw the same upward trend in its data. "We're selling everywhere."

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