Home prices in Brooklyn are fast approaching those in Manhattan, with the borough taking four of the top ten most expensive markets in New York City.
New figures from StreetEasy reveal that the median recorded sale price in Brooklyn is up 6.7% in the first quarter of 2018 compared to a year earlier. Carroll Gardens, Dumbo, Park Slope and Greenpoint were the borough’s priciest neighborhoods.
Overall price growth measured by the StreetEast Market Indices was moderated by a high number of luxury homes flooding the New York market.
Overall, 19% of Brooklyn neighborhoods had a median recorded sale price higher than the Manhattan median in Q1 2018, but the median price per square foot in Brooklyn and Queens, at $700 and $500, respectively, remains much lower than the Manhattan figure of $1,400.
"The spike in recorded sales prices highlights the stiff competition that budget-minded buyers face entering peak home-shopping season," said StreetEasy Senior Economist Grant Long. "While Brooklyn and Queens were once an oasis for those priced out of Manhattan, the cost of homeownership in the outer boroughs is on the rise. Neighborhoods that were once middle-class have become among the most expensive in the city. However, those with the means to buy in these areas will still get more for their dollar than in most of Manhattan."
Sales prices rose the most in Upper Manhattan and Midtown with the StreetEasy Price Index in Upper Manhattan up 3.2% to $531,719, and 3.1% in Midtown to a record high of $1,234,760. The Upper West Side StreetEasy Price Index dropped 1.1% since last year to $1,131,030.
Prices in Queens increased the fastest among the boroughs. The StreetEasy Price Index in Queens rose 6.8% since the first quarter of 2017, to $516,693.