Home values in Brooklyn continued to slide, but sales activity is showing signs of life, surging for the second consecutive quarter, according to a recent report.
The median sales price of all residential properties in the third quarter fell 6.7 percent to $476,000 from $510,000 last year during the same period last year, according to the report, issued by broker Prudential Douglas Elliman Real Estate and Miller Samuel Inc., a Manhattan-based appraiser. The number of sales declined 19.6 percent to 1,847 from 2,298 sales from the prior year’s quarter — but increased 29.3 percent from 1,428 units in the second quarter of the year.
“I think it’s good news, and I’ll take it,” said Jonathan Miller, president of Miller Samuel. “But it doesn’t imply a bottom. There are still too many macroeconomic issues, like unemployment that affect the housing market.”
In the report, Miller notes that the jump in the number of sales from the prior quarter “reflects a release of pent-up demand from an unusually low level of sales activity seen in the early part of the year that began with the Lehman bankruptcy tipping point on September 15, 2008.”
“The Brooklyn ‘spring’ market was pushed forward and occurred over the summer as a result.With the increase in activity, listing inventory fell sharply but remains above typical levels.The increase in median sales price from the prior quarter caused by the increased level of sales is the first increase after seven consecutive quarterly declines,” according to the report.
There was a 1.7 percent dip in condo median sales price to $496,860 borough-wide compared to the same quarter last year, according to the report, released October 14. Compared to last year’s second quarter, condo sales tumbled 29.8 percent to 463 units — from 660 units in the same period last year, but 24.5 percent above the 372 units in the second quarter.
The median sales price of 1-3 family properties dropped 10.6 percent to $536,300. Sales declined 9.4 percent to 944 units, compared to last year. Still, this figure is up 31.8 percent from last quarter.
North Brooklyn, which includes Williamsburg and Greenpoint, saw a median sales price of $564,110, down 12.1 percent than the prior year quarter. Northwest Brooklyn, which includes neighborhoods such as Boerum Hill, Brooklyn Heights, Carroll Gardens, Red Hook, Park Slope, and Gowanus saw a 14.2 percent decline to $565,000. The number of sales dropped 19.6 percent to 415 units, but surged 69.4 percent above 245 units in the second quarter.
In the southern portion of the borough, prices slipped 4.2 percent to $445,479. Sales fell 14.4 percent to 1,060 units, up 25.3 percent above the 846 units in the prior quarter. In the report, this area includes a broad range of neighborhoods, including Bay Ridge, Bensonhurst, Canarsie, Midwood, Sheepshead Bay, Flatbush, Mill Basin, Dyker Heights, Marine Park, Borough Park and Coney Island.
The eastern section of Brooklyn, which includes neighborhoods like Bedford Stuyvesant and East New York, saw home prices decline 3.5 percent, to $425,962. Sales fell 26.6 percent to 259 units, just 6.6 percent above the 243 units in the prior quarter.
Borough-wide co-op median sales price was up 1.1 percent, to $283,210, compared to last year at this time, while sales fell 26.5 percent, up 29.4 percent from the second quarter.
The median sales price of luxury properties, representing the highest 10 percent of all Brooklyn co-op, condo and 1-3 family home sales, was $1,210,000, down 13.7 percent, according to the report.
Despite the positives seen in the third quarter, Miller said he expects declines in the fourth quarter. “We are going to see weaker numbers,” he said. “That’s the quarter with the lowest level of sales and where we tend to see price declines.”
©2009 Community News Group
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