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Amid a building boom, Brooklyn properties fly off the market at rising prices

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For some firms, Q3 was the strongest quarter for Brooklyn sales in nine years

Austin Nichols House, one of the Brooklyn new developments that began closings this quarter.

It’s a new month, which means it’s time for a new barrage of market reports. While each of the various brokerages reports different median and average sales prices for Brooklyn sales in the third quarter of 2017, one thing they can all agree on is that the market in Kings County continues to be red-hot—which isn’t exactly the best news for buyers.

Let’s look at it by the numbers:

  • Douglas Elliman’s report says the median sales price in the borough is $790,000, and the average sales price is $981,623, based on 2,914 homes sold.
  • According to Corcoran’s report, the median is $733,000, and the average is $856,000, based on 1,670 closed sales.
  • Stribling’s numbers are highest, with $850,000 as the median and $1,023,422 for the average, a record for the firm. That’s based on 1,851 recorded sales.

Even though the numbers are different, in nearly every case, they’re an increase over the same period in 2016—in some cases, by more than 10 percent.

Each brokerage can also agree on this: the amount of luxury development in the borough is pushing prices ever-higher. Corcoran notes that a number of new buildings (including 550 Vanderbilt in the Pacific Park megaproject, and the Austin Nichols House in Williamsburg) began closings in the third quarter of the year, leading to higher numbers—though the second quarter of 2017 was still stronger overall for new development.

“Over the past several years, an incredible amount of new product has been constructed, particularly in the North and Northwest submarkets,” Garrett Derderian of Stribling said in a statement. “The resulting price increases have caused somewhat of a ripple affect across the entire borough, as we saw all submarket average sale price per square foot numbers rise in the third quarter.”

Another trend across the board: lower inventory, with Corcoran reporting a 13 percent dip in inventory, and Elliman reporting a whopping 30 percent drop. But even with the drop in the number of listings on the market, the borough was able to meet with the rising demand for apartments: Corcoran and Elliman both reported their strongest quarters for sales in nine years. “Buyers not only responded favorably to Brooklyn’s building boom, but the speed at which both new construction and resale apartments were absorbed this quarter was striking,” according to Corcoran’s report.

TL;DR; Prices appear to be on a steady upward climb in the borough, owing to demand and closings at luxury projects. Don’t expect a break here anytime soon.