Report: Not just condos, but private homes in southern Brooklyn, are integral part of borough’s real estate
The Brooklyn real estate market is definitely on the rise, a recently-released January report from Compass, called “Brooklyn Market Insights,” says.
This won’t surprise most people. But it will surprise some to know that not-so-trendy Southern Brooklyn is one of the strongest markets, and that private houses as well as condos are a very substantial part of the equation.
The Compass January report shows that:
- Average prices have increased from $1,116,921 in Jan 2021 to $1,285,627 in January 2022, a 15.1% increase.
- Inventory has steadily decreased from 4,065 in Jan 2021 to 3,300 in Jan 2022, a 18.8% decrease. This means that more people are buying.
- Average days on market (before sale) has also decreased from 141 in Jan 2021 to 120 in Jan 2022, a 14.9% decrease. This means that more people are looking to buy.
Similar figures have been reported by other real estate reports covered by the Eagle. However, Compass, a real estate brokerage active in more than 20 states, looks at private homes, condos and co-ops.
To no one’s surprise, when the report looks at “contracts signed,” the biggest share, 47 percent, belongs to condos. However, private houses account for a substantial 34 percent, and co-ops only account for 19 percent.
As far as areas of Brooklyn are concerned, the firm divides the borough into “North Brooklyn” (Greenpoint, Bushwick and Williamsburg); “Northwest Brooklyn,” stretching from Fort Greene to Red Hook, Park Slope and Windsor Terrace; “East Brooklyn,” from Prospect-Lefferts Gardens, Crown Heights and Bed-Stuy to Brownsville and East New York; and “South Brooklyn,” basically everything south of Prospect Park and stretching east to Flatlands, Marine Park and Canarsie.
Despite the popularity of Downtown Brooklyn and North Brooklyn, the majority of the sales, 34 percent, were in South Brooklyn. Thirty-one percent were in Northwest Brooklyn, 19 percent were in East Brooklyn, and 16 percent were in North Brooklyn.
As far as inventory is concerned, a large majority, 45 percent, belonged to houses. Condos came next, at 34 percent, and co-ops were last, at 22 percent.
The majority of the inventory, 53 percent, was in South Brooklyn. Fifteen percent was in East Brooklyn, 22 percent was in Northwest Brooklyn, and 10 percent was in North Brooklyn.
The biggest share here, 43 percent, belonged to houses. Condos were 34 percent, and co-ops were 22 percent.
Few co-ops have been built in the last 30 or 40 years. At one time, in the 1980s, owners of apartment houses couldn’t wait to convert their properties to co-ops, and the words “red book” and “black book” entered many tenants’ vocabulary. However, at about the same time, condos began to be built in the city, possibly because of changes in laws and regulations.
Many buyers prefer condos because they have more control over their units, and because they don’t have to appear before a co-op board to get their application approved. In some cases, co-ops have even converted to condos.
Leave a Comment
Leave a Comment