Brooklyn Real Estate Market Update: February 2023

If you’re interested in staying informed about the Brooklyn real estate market, you’re in the right place. In this update, I’ll be sharing five key points about the current state of the Brooklyn real estate market in February 2023.

Brooklyn Real Estate Prices

Let’s start with prices. In Brooklyn, the median sales price is currently $890,000. This is down from $950,000 last month and $960,000 this time last year. Prices in Brooklyn are down around 7% from last month and year over year? Before you panic, this is just one month. For some context, In 2022 prices increased every month through July and then dropped in August and September before recovering in October and November. 

Brooklyn Sales Price to List Price Ratio

Currently, the sales price to list price ratio is 98.5% up slightly from last month, which was 98.4%, but lower than this time last year when we were above 100%. This is very strong and good to see after the median sales price number. 

Brooklyn Days on Market

Now for the number of days on market which measures the average time it takes to sell a property in Brooklyn. Currently, we’re at 74 days, which is up from 62 days last month, but lower than 81 days this time last year. Seasonally, the number of days on market is typically higher this time of year so it’s best to look at the year over year number and that’s down so a good sign here. By the way, the 10 year average is 74 so we are right in line with recent historic average and as a rule of thumb, less than 120 days is considered a sellers market and we are well within that.  We’re looking good here. 

Number of Homes For Sale in Brooklyn

Next, let’s explore how many homes are for sale now in Brooklyn and how it’s trending. The number of active homes for sale is 3,988, down from 4,482 last month and less than 4,258 this time last year. Inventory in Brooklyn has been pretty stable over the past years. The 5 year average this time of year is more similar to last year at 4,572 so inventory is trending lower and we’re lower than recent historic averages. This is another good sign. 

Number of Price Reductions in Brooklyn

Let’s take a look at how often sellers are reducing their prices in Brooklyn. 7% of sellers reduced their asking prices last month vs 6% this time last year.  So a little higher, but nothing significant. And we’re below the 5 year average of 8% this time of year so we’re in good shape. Price decreases are considered a leading indicator and give you an idea of what’s going to happen in the future. This tells us that we’re holding steady as we start 2023 especially when considering the lower inventory numbers. 

Brooklyn Real Estate Market Summary

In summary, prices are down, the sales price to list price ratio is up, the number of days on market is down, the number of homes for sale is down and price reductions slightly increased. If you’re interested in buying or selling real estate in Brooklyn, we can help! Call me directly at 917-626-2372 or email me at justin@braithrealty.com