By Rich Schulhoff, CEO of Brooklyn MLS
New York City is one of the hottest housing markets in the U.S., so it’s no surprise that the Brooklyn real estate market continues to remain active as a new decade begins.
For the past 15 years, I’ve been the CEO of the Brooklyn MLS (Multiple Listing Service) and Brooklyn Board of Realtors. Prior to coming here, I served as Communications Director for the Staten Island Board of Realtors and their MLS. But it wasn’t always real estate. Before delving into the business, I spent 25 years in television, mostly in network sports as a writer and producer, for which I won an Emmy in 1992.
I’ve always been fascinated with the real estate market, especially bearing witness to the growth and development of the different neighborhoods.
Throughout my tenure, I’ve witnessed Brooklyn’s continuous growth.
A favored market for a long time, one might expect a slight decline when it comes not only to price but days on the market. The fact that it has held strong proves how active the Brooklyn real estate market is.
A BOROUGH’S APPEAL
While statistics in other boroughs may tell a slightly different story, Brooklyn continues to be a place where people want to put down roots. A borough of neighborhoods, it is community-oriented, making it an attractive location to raise a family while still being accessible to areas like Manhattan.
Long established Brooklyn neighborhoods continue to rise in value as well as popularity, and that includes Bay Ridge, an area that has become the ultimate melting pot. The different ethnicities that make up Bay Ridge is what has led to its strength, and it will continue to remain a hot spot for buyers.
Other neighborhoods about to explode, include East New York and Greenpoint, a stone’s throw away from Manhattan and currently a bit more affordable than its next-door neighbor, Williamsburg. A telltale sign that East New York is on the verge of expansion is due in part to the new developments in the area. Whenever businesses, especially restaurants, start up in areas that have been otherwise neglected, communities begin to transform with residents settling in.
Additional locations throughout the borough that will continue to see growth in 2020 are Coney Island and its neighbor, Brighton Beach, thanks in part to significant developers. Co-ops and condos are being developed along Coney Island Avenue, offering fantastic views of the ocean. Along with new restaurants and the revitalization of the famous Coney Island Amusement Park all things point in the right direction.
Along with the development of new buildings is the likelihood of existing rentals converting either to condos or coops. While this is thought to be a general trend, there isn’t a specific area per se. The thought process behind the idea: people know the value in Brooklyn is high, and mortgage rates are currently low.
NUMBERS TELL A STORY
In reviewing the last two years, statistics indicate that not only has the median price for a single-family home increased, but days on the market also decreased, with a similar pattern for multi-family dwellings.
According to a report issued by the Brooklyn MLS for 2019, the median price for a single-family home in 2019 sold for $820.000, increasing over $100,000 from 2018. Along with an increase in price, days on the market decreased from 80 to 72 days.
In looking at the sale of multi-family homes in 2019, prices dropped moderately (less than 5 percent). In 2018, the median price was $1.25 million, dipping slightly to $1.2 million a year later, while days on the market only increased by one day from one year to the next.
As a borough, Brooklyn is maintaining its ascent in the real estate industry as being one of the most secure markets in the country. As we move further into 2020, there shouldn’t be much more of an increase; rather, potential buyers will see steady pricing throughout the year.
ONE LAST NOTE
As the country prepares for the upcoming election, the question on people’s minds is, “how will this affect the real estate market?” Elections do make a difference; people look at them as a sign of the country moving one way or another, and that ultimately affects the market. Once we move closer to 2021, there is a good chance homebuyers, and investors may adopt more of a wait-and-see approach when it comes to real estate.
This is my New York and Brooklyn is a fabulous place to live. The borough continues to be a place where people want to live. As more people realize the advantages to real estate from an investment standpoint, the demand for property will continue.
For more information on Brooklyn MLS, visit brooklynmls.com.