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Brooklyn home prices up, sales down in 2007 Tommy Fernandez
Published: February 6, 2008 - 10:17 am
The market for residential real estate in Brooklyn stayed strong in 2007 despite a major tumble in sales volume, according to a study by appraisal firm HMS Associates.
The average sales price for Brooklyn homes rose 4% to $634,915 in 2007, according to the report, which included data on single and multi-family homes, as well as co-ops and condominiums. Average sales prices rose 9% in the fourth quarter after a 12% increase in the third quarter.
Brooklyn single family home prices rose 10.2% to $669,000 in 2007, while four-family home prices climbed 18.6% to $1.4 million for the year. Co-op prices rose 8.8% to $444,000, while condo prices increased 7.5% to $587,000.
But although prices are rising, the increase between 2006 and 2007 was only half that between 2005 and 2006. In addition, houses are actually coming off the market. Brooklyn home sales dropped 23% to 3,374 in 2007, compared with 4,376 homes sold the previous year. Officials said the disparity shows that sellers were still unwilling to lower their prices, even as buyers played the waiting game to seek out a better deal. Moreover, the sub-prime mortgage crisis has caused lenders to tighten their standards, making it more difficult to get home financing.
Buyers and sellers may agree on a sale price, but the buyer fails to qualify for a loan under the tighter standards, said HMS executive vice president Sam Heskel. Because of this, brokers are seeing many contracts fall through.
For the year, significant price rises occurred in Clinton Hill, up 8%, and Bay Ridge, 7%, neighborhoods, while Carroll Gardens and Boerum Hill saw double digit price declines. The largest increases in number of sales occurred in Boerum Hill and Carroll Gardens, while Canarsie and Crown Heights had the biggest declines in numbers of homes sold. 
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