Brooklyn Market Report

Q1 2025

Your Q1 2025 Brooklyn

Market Report is Here!

Brooklyn’s residential real estate market continues to evolve, demonstrating resilience despite broader market uncertainties. As buyers adjust to current mortgage rates, they’ve begun reentering the market, resulting in 2,358 sales this quarter—a 13.4% year-over-year increase. Houses maintain their dominance, accounting for 50.9% of the market share, with a notable 16.7% increase in sales compared to last year.

Growth was particularly strong in North Brooklyn, including neighborhoods such as Williamsburg, and Greenpoint, and Northwest Brooklyn, which includes areas like Brooklyn Heights, Carroll Gardens, and DUMBO, and South Brooklyn, including Bay Ridge, Bensonhurst, and Bergen Beach. East Brooklyn saw a slight decline of 1.3%. Looking at contracts, Northwest Brooklyn saw a 27.5% increase in homes signed, while condos in North Brooklyn were up 10.6%.

The luxury market continues to perform robustly, with contracts in the $2-3 million range growing by 14.3% year-over-year, and contracts over $3 million increasing by 7.6%. This market segment remains relatively insulated from the impacts of rising interest rates. While overall inventory is down 8.2% year-over-year, there are signs of optimism, with a 5% increase compared to Q4 2024. The decline in inventory is largely driven by a significant reduction in co-op listings.

Although there was limited contract activity compared to last year, there are positive signs as we move toward the buying season. The luxury market continued to have a stellar performance, with contracts in the $2-3 million range growing 14.3% year over year, and contracts over $3 million increasing by 37.6%. This market segment remains relatively insulated from the impacts of rising interest rates, and is expected to see continued growth. Additionally, while active listings were down 8.2% compared to Q1 2024, they climbed 5% from last quarter. Limited inventory will continue to stall co-op activity, unless a significant influx of properties come to market.

Overall, Brooklyn’s market shows strong growth and resilience, with rising sales, a thriving luxury segment, and signs of optimism despite ongoing inventory constraints. Houses remain dominant, reflecting the ongoing demand for space, while the luxury market continues to thrive despite higher mortgage rates. As inventory remains constrained, the market’s dynamics continue to shift, but optimism persists with rising sales and new developments on the horizon.

Q1 2025 Brooklyn Highlights

• There were 2,358 sales this quarter, a year-over-year increase of 13.4% and 2.1% from last quarter

• Condos saw 14.4% more closings and generally sold at a higher prices, with the median climbing 11.7% to $1.1M, the highest on record for a first quarter

• The luxury market continued to perform the best, with major increases in the number of sales at $2-3M and $3M+, though both declined in average price per square foot compared with Q1 2024

• Co-ops fared the worst and drove the majority of the decline, dropping 42.6% compared to last year, entirely attributable to lack of inventory and limited new listings this quarter, though interestingly the signings that did occur were more than 30% higher in price

• Most decline was seen in South Brooklyn, while the other submarkets saw limited shift in contract activity, and even a small 1.7% improvement in North Brooklyn

  
  

• Northwest Brooklyn saw 27.5% more houses entering contract than last year, with a 14.5% higher median price

• Overall inventory was down year-over-year by 8.2% but up 5.0% compared to Q4 2024

• Most of the decline was due to a severe reduction in co-op active listings, which were down 35.8% against last year

• North Brooklyn had a significantly higher number of active listings than last year, up 32.6% year over year, mostly attributed to condo inventory

• The luxury levels of $2-3M and $3M+ were the only price brackets to see an increase in inventory this year, climbing 4.9% and 14.3% year over year, respectively

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Julie Hoffman

Manhattan | Brooklyn

Residential Sales

M: 917.275.3570

E : Jhoffman@compass.com

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