NOV 12, 2024
Brooklyn’s housing market remained highly competitive during Q3 of 2024, with home prices continuing to climb and a significant surge in cash deals. The median sale price reached $975K, marking a 4% year-over-year increase and making this the second-highest level in a decade. Though not a record-breaking quarter, it further underscores Brooklyn's status as one of NYC’s hottest real estate markets.
One of the most notable trends in Q3 was the dominance of cash sales, which accounted for more than 50% of all transactions. Buyers are increasingly using cash to avoid the steep interest rates that have made financing more expensive. In fact, cash sales rose 20%, while mortgage-based purchases dropped by 22%. This surge in cash deals highlights the challenges posed by current interest rates, especially for buyers who rely on mortgages to finance their purchases.
Brooklyn’s real estate market continues to see fierce competition. One in four homes sold in Q3 was involved in a bidding war, and properties typically sold for 6% above their asking prices. Sales of homes priced above $1 million grew by 2%, while those under $1 million dropped by 9%, illustrating how rising interest rates are squeezing out lower-end buyers while wealthier individuals, who are less impacted by financing costs, continue to dominate the market.
Brooklyn’s longstanding inventory shortage showed some signs of easing, with listings growing by 13% YoY, but demand remains high, and prices are expected to stay strong. Report analysts believe that pricing trends will continue through the end of the year, with the possibility of new price records in Q4.
Overall, Brooklyn remains one of the most competitive real estate markets in NYC, with cash buyers driving much of the activity as they seek to sidestep the rising costs of mortgage financing. For prospective buyers and sellers, the key takeaway is clear: Brooklyn’s market is hot, and those who are able to buy with cash are positioned to win in this environment.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
