Apartments
1 Bedrooms: We saw a significant decline (54%) in transactions in the one-bedroom asset class in 2023. Not surprisingly, most one-bedroom buyers saw that renting for another year would be more affordable than buying, given the rise in interest rates. Luckily, prices did not follow suit and only dropped 6%. We envision more buyers returning to the market as rates (hopefully) drop in 2024.
2 Bedrooms: Similar to the 1 bedroom market, 2 bedroom apartments saw a steep drop in transactions (44%) but only a minor 3% drop in median price. Sticking with the theme we saw across Brooklyn, there were fewer buyers but just as few sellers, keeping transactions limited but prices somewhat flat.
3 Bedrooms: Unlike previous years, we did not have any sizeable new development buildings to account for a significant increase in 3 bedroom sales. In years past, notable buildings like 1 PPW in Park Slope and The Quay in Brooklyn Heights boosted transaction numbers and prices; this year, we saw dips of 35%(transactions) and 4%(median price).
4+ Bedrooms: Interestingly, the 4+ bedroom category saw the lowest drop in transactions(25%) and the highest drop in median price(17%). This category is often subject to large price changes as the amount of transactions is always lower than smaller apartments.
Townhouses
As we look back over 2023, we see the following general trends:
The median price for a townhouse in brownstone Brooklyn fell by 4%. The number of townhouses sold fell by 27%. These numbers vary greatly by neighborhood (see inside for your own neighborhood), but the basic factors affected the whole borough; namely, rising interest rates and a shrinking supply of homes for sale. In short, it was a difficult time to be a buyer (nothing to choose from) AND not easy to be a seller (giving up your 3% mortgage to move on is painful).
So far, in 2024, rates have slipped back a bit and both buyers and sellers are showing more optimism. We are glad to see it and look forward to more good news as spring approaches.
As always, if you have an interest in knowing your home's value
for any reason at all, we are here and happy to help.
Brooklyn
By the Numbers
Median Price
1 BEDROOM
-6.03%
$689,000
2 BEDROOM
-3.18%
$1,238,885
3 BEDROOM
-4.62%
$2,085,000
4+ BEDROOM
-19.39%
$4,100,000
Transactions
1 BEDROOM
432
-54% from 2022
2 BEDROOM
726
-49% from 2022
3 BEDROOM
337
-39% from 2022
4+ BEDROOM
68
-35% from 2022
Brooklyn Townhouses
Median Price by Neighborhood
NEIGHBORHOOD
2016
2017
2018
2019
2020
2021
2022
2023
% change from prior year