- Brooklyn’s median sale price hit $975K in Q3, the second-highest level in a decade, marking a 4% YoY increase.
- Cash deals accounted for over 50% of transactions, the highest share in 10 years, as buyers avoid high mortgage rates.
- One in four homes was sold in a bidding war, with properties selling for an average of 6% over asking price.
- Sales over $1M rose 2%, while deals below $1M dropped by 9%, reflecting the market’s sensitivity to interest rates.
According to the Real Deal, Brooklyn’s real estate market remained highly competitive in Q3, with cash deals driving most activity as prices kept rising.
By The Numbers
The median sale price across co-ops, condos, and one- to three-family homes climbed to $975K, representing a 4% YoY increase.
According to Miller Samuel’s report for Douglas Elliman, this is the second-highest level in the last decade, following a record-setting Q2 in which the median price reached $990K.
Though the quarter didn’t set new records, the intensity of the market was evident, with one in four sales involving bidding wars. Homes sold for an average of 6% over their last asking price.
Report author Jonathan Miller noted that Brooklyn has consistently ranked among the top boroughs for pricing, frequently holding first, second, or third place nearly every quarter for the past five years.
Cash Sales Soar
Cash sales played a significant role in Q3, accounting for more than half of all transactions—the highest proportion since Miller Samuel began tracking the data.
Cash deals were up 20% YoY, while mortgage-based purchases plummeted by 22%, reflecting the challenges posed by higher interest rates.
Buyers in Brooklyn, particularly in the higher-end market, opted for cash transactions to avoid financing costs, often utilizing equity withdrawals from financial markets.
Lower-End Struggles
Sales above $1M grew by 2%, while transactions below $1M dropped by 9%, highlighting the pressure higher interest rates are putting on the lower end of the market.
Overall, the number of transactions dipped by 4%, falling from 2.6K in 3Q23 to 2.5K this year.
Signs of Relief
Brooklyn’s longstanding inventory shortage saw signs of easing, with listings growing 13% YoY, from 2.6K to 2.9K.
This growth could provide some relief to the market, though Miller expects the strong pricing trends to continue through Q4. “I wouldn’t be surprised to see another price record or some flavor of it,” he added.
