Oh Brooklyn, Brooklyn, Brooklyn. We had such high hopes for you a few years ago, but no more. The Real Deal tours Brooklyn's most popular neighborhoods and brings back some grim data:
Overall, the median closed sales price in Brooklyn has already fallen back to 2005 levels, dropping 19 percent over the past two years, according to StreetEasy....Meanwhile, a city tally early last month found that Brooklyn had more stalled construction sites than any other borough with 214 -- a stunning 47 percent of all 448 projects citywide. The situation is particularly serious in the gentrification hotbeds of Williamsburg and Downtown Brooklyn, where rents and sales prices have already fallen more than 20 percent -- with another 5 to 10 percent to go, says Bob "Big Knak Attack" Knakal -- and new condos are still marching lemming-like onto the market. Also, people are fighting each other for bread in the streets.
But before you start letting your anxiety about the future of the Brooklyn market keep you up at night (it's too late for us), Real Capital Analytics' Dan Fasulo offers this cheering thought: the condo glut is "going to provide much-needed affordable housing for the middle class, which doesn't really exist right now." We thought that was the whole point of Brooklyn in the first place!
· Finding a Bottom in Brooklyn [Real Deal]