Last week, we provided an update on the growing DC multifamily and retail markets.
Today we’ll look at Brooklyn.
It’s no secret that Brooklyn is one of the hottest real estate markets in the country right now. However, the housing market, though still strong, came out uneven during the third quarter.
While the average sale price of a Brooklyn residence fell 7.3 percent from the second quarter, to $726,100, the median sale price was up 2.2 percent, hitting $587,515, according to the quarterly Elliman Report.
Year-over-year third quarter numbers were stronger. Average sales increased 4.5 percent from the same year-ago period.
Inventory also increased. Available residential units were at 4,990, a jump of 12.7 percent from the second quarter and an increase of 3.4 percent from the same year-ago period.
Average sales year-over-year were the strongest in Bedford-Stuyvesant and East New York, rising 18.9 percent. North Brooklyn, which includes Williamsburg and Greepoint, saw a 15.3 percent increase in average sale price.
Curbed’s Street Easy report earlier this year took a look at individual Brooklyn neighborhoods. In August, the year-over-year residential sales price in Dumbo shot up 69 percent, to just over $1.5 million. The Columbia Street District saw a 28 percent increase, hitting above $1.1 million. Growth in both areas outpaced that in Manhattan.
Commercial real estate performance in Brooklyn has spiked as well, according to a recent report from TerraCRG. For multifamily, there were more than $1.3 billion of transactions in Brooklyn in the first six months of the year, a 103 percent increase over the same period in 2013. Mixed-use transactions shot up 51 percent, to $462.7 million.
With strong commercial and residential forecasts, investment in Brooklyn is expected to continue to grow.
Fundrise has funded 5 projects in Brooklyn, a mix of commercial and residential deals in neighborhoods such as Bushwick, Greenpoint, Prospect Heights, and Williamsburg.
Given the success of the projects to date, we also have several new Brooklyn projects in the pipeline to be opened for investment this month and in early 2015.
Image Source: Timothy Krause, Flickr