Brooklyn Real Estate Market Update: January 2023

If you’re a homeowner or aspiring homeowner in Brooklyn, here are five important points you need to know about the current state of the real estate market in Brooklyn. I’m Justin Braithwaite, a principal real estate broker at Braithwaite Realty in NYC.

Brooklyn Real Estate Prices

The average sales price in Brooklyn has remained relatively unchanged at $950,000 from this time last year, but is down 4.5% since the peak in July in 2022 due to the higher interest rates. 

Brooklyn Sales Price to List Price Ratio

Sellers in Brooklyn are receiving 98.4% of their asking price, while buyers are paying approximately 1.6% less than the listed price. This indicates that sellers are effectively pricing their properties in line with buyer expectations. For context, the ten-year average sales price to list price ratio has been 97.3%.

Brooklyn Days on Market

The average time a property spends on the market before going into contract in Brooklyn is 62 days. This figure remains unchanged from the same time last year. As a general rule, a seller’s market is characterized by properties selling in less than 120 days and we are well within that. 

Number of Homes For Sale in Brooklyn 

Currently, there are just under 4,500 homes for sale right now compared to just under 4,900 this time last year. This decrease in inventory is advantageous for sellers, as it means less competition in the market. The ten-year average for this time of year is slightly lower, at a little over 3,900 homes.

Number of Price Reductions in Brooklyn

The percentage of price reductions currently stands at 13%, showing an improvement from the peak of 15% in June. However, it is higher than the low of 8% in February, before the impact of higher interest rates hit the market. Price reductions are a leading indicator and suggest a positive outlook for the Brooklyn real estate market in 2023.

Brooklyn Real Estate Market Summary

In conclusion, prices are stable year over year but down from their peak mid last year, a healthy sales price to list price ratio, a consistent average days on the market, reduced inventory compared to the last year, and a gradual decline in price reductions. These factors point to a promising year ahead for the Brooklyn real estate market. If you’re interested in buying or selling real estate in Brooklyn, we can help you maximize the sales price of your home! Call me directly at 718-938-0562 or email me at justin@braithrealty.com.