Brooklyn’s average apartment price is close to hitting $1M

It looks like the cost of buying in Brooklyn is finally getting as terrifyingly high as Manhattan. In the second quarter of 2017, the borough set some serious price records: The median price of any apartment increased nearly 21 percent to $795,000, a record. And—this might give pause to the New Yorkers who still remember when Brooklyn was remotely affordable—the average sales price increased 22.1 percent, and is now "close to cracking $1 million," according to Jonathan Miller, author of the Douglas Elliman market reports. Yes, that’s another record.

Per Miller, this jump in price marks the third time in the past four quarters that Brooklyn’s average price has broken its own record; it’s the fourth consecutive quarter with a median sales price record. It's also the fastest paced market on record, with the number of sales jumping 50.7 percent and the listing inventory falling 15.5.

According to Douglas Elliman the median sales price for a condo was $900,000; for a co-op, it was $423,000; and for single- to three-family homes, it was was $1,046,440. The luxury median sales price jumped 32.6 percent to $2,520,168. Halstead, meanwhile, tracked a record average of $1,109,602 for townhouses prices, which comes out to $481 per square foot.

So what gives? According to Corcoran’s report, "this quarter was the season of the new development" for the borough. Closings at buildings like 550 Vanderbilt, 500 Waverly, 200 Water Street, and Pierhouse helped new development sales jump 127 percent over the same time last year; the median price for those properties rose 25 percent year-over-year to $971,000, as the average price increased 42 percent to $1.37 million. And while both the inventory and closed sales for new developments is on the rise, it’s actually decreasing for co-ops and resale condos.

Miller calls the Brooklyn market one that's "still figuring itself out," but says there’s still room to grow, likely in the condo market. "I don't think we give enough credit to how powerful this 'Brooklyn phenomenon is," he says. "We're not just seeing records in Brooklyn—it's also causing the neighboring borough to set similar records."

Oh yeah, Queens prices are up, too: The median sales price in the borough rose 9.7 percent to $510,000—another record—while the average sales price increased 12.4 percent to $592,245, also a record. The luxury median sales price increased to $1.2 million.

This is the fourth average sales price record set in past five quarters, and second median sales price record set in four quarters. Queens also saw its fastest paced second quarter in a dozen years, with the number of sales surging 47 percent.

• The Elliman Reports: Brooklyn, Queens & Riverdale Sales 2Q-2017 [Douglas Elliman]
• Brooklyn Market Reports [Halstead]
• The Corcoran Report 2Q-2017 Brooklyn [PDF] [Corcoran]