A comprehensive, neighborhood-by-neighborhood Brooklyn market analysis presented by The Ryan + Ryan Team at Compass
Trust Experience.
With over 50 years of combined experience and $1B in closed transactions, Libby, Maria and Joe, have a proven track record in Brooklyn real estate. The team has broken condo and coop sales records in Park Slope and brownstone sales records in Bed Stuy and Fort Greene. The Wall Street Journal's Real Trends named The Ryan + Ryan Team the #2 Small Team in Brooklyn and Top 50 in New York State.
The Ryan + Ryan Team are known among clients and peers alike for their sharp negotiation, refined taste, deep professionalism, and good humor. A multigenerational, fully integrated team from backgrounds ranging in finance and law, the members of The Ryan + Ryan Team are full-time real estate professionals with expertise in, and deep affection for, the diverse sprawl of Brooklyn communities.
Brooklyn Market Overview
Our top line conclusion, after poring over the 2023 numbers, is that the significant rise in interest rates did not have the expected negative impact on home prices. We did see a significant drop in the number of transactions but only a single digit drop in median prices. As we spoke with buyers and sellers every day, we came to the conclusion that the drop in the number of transactions was mostly due to less supply, not less demand. Why was supply so low? Potential up-sizing sellers did not want to give up their low interest rates and potential down-sizers read national headlines that the real estate market was down. Conversely, there were many, many buyers looking for Brooklyn homes. That excess of demand over supply helped buoy prices in 2023.
Some outliers to the 2023 townhome data were found: in Bedford-Stuyvesant we saw median prices increase by 49.1% from 2022 to 2023. The only neighborhood where the number of transactions increased was Prospect Lefferts Gardens, up by 13.5%
In the apartment market, transactions were down 39% in 2023. The drop was especially evident in the 1 bedroom category where due to skyrocketing interest rates, first time home buyers found it more affordable to rent than to buy. On the other hand, the drop in the number of sales in the 3 to 4 bedroom category was likely due to the lack of new luxury development buildings.
The Ryan + Ryan Team navigated competitive situations for some homes, negotiated hard on behalf of buyers for homes that were sitting on the market, and postponed the search for some buyers who were priced out after interest rates rose beyond their reach. We also saw sellers not willing to sell for less than their neighbors did in 2022 or 2021, even if the market did not bear that price. Our conclusion? Don’t bet against Brooklyn and New York City real estate. Interest rates may be higher, but people’s desire to live in Brooklyn has not been daunted a bit. As long as that is the case, owning Brooklyn real estate is a good idea.