Could Brooklyn townhouse prices drop?
- Serj Markarian
- Jul 11, 2024
- 2 min read
Updated: Aug 23, 2024
Last week’s release of the Q2 2024 Manhattan Market Report highlighted an increase in inventory. It appears Brooklyn is following a similar trend, particularly with townhouses. As of mid-June, nine townhouses were on the market, collectively asking over $100 million, with the highest listed at $18 million.
Jonathan Miller, CEO of Miller Samuel, describes this as “highly unusual, especially in a market with relatively limited supply.” Home prices have surged, with the average sales price for a Brooklyn townhouse reaching $3.3 million in Q1, and the price per square foot spiking 39.7 percent from the previous period. This price increase may be encouraging other townhouse owners to list their properties, hoping to capitalize on the high market values.
However, this influx of comparable inventory could potentially impact the market negatively. For now, Brooklyn townhouses are maintaining their high prices. Notably, nine townhouses went into contract during the week of July 4th. Brooklyn townhouses have also held the highest-priced single contract for six consecutive weeks and, for two weeks in a row, have accounted for the four most expensive contracts.
Miller notes that the slow spring market might be contributing to the surplus due to low demand. Price appreciation has been consistent over the past four years, driven by wealthy buyers, with some homes selling at unprecedented prices. Sellers are seeing this as an opportunity, despite properties taking longer to sell. On average, Brooklyn properties spent 97 days on the market, a 60 percent increase from the previous year during the Fourth of July holiday week.
As Bess Freedman, CEO of Brown Harris Stevens, mentioned in the Q2 2024 Market Report for Manhattan, “price adjustments will be needed in some segments of the market.” This sentiment applies to Brooklyn as well if faster inventory movement is desired. More insights will be available with the release of the Brooklyn Townhouse Report for the first half of 2024. In the meantime, feel free to reach out with any questions about your real estate needs, regardless of the borough.
