Year-end reports on the Brooklyn real estate market were released this past week. While sales volume declined in the 4th quarter 2010, average sales prices for Brooklyn homes increased year over year, indicating a recovering real estate market.¬† While the reduced volume was likely due to the expiration of the federal homebuyer tax credit on 9/30/10, one market report showed an increase in home prices of 18.7% in Northwest Brooklyn, and an 8.9% increase for brownstones in that same submarket.
What have we been seeing in the market? A continued strong demand for¬† homes in brownstone Brooklyn‚ÄĒespecially for one-to-four family brownstones, townhouses and row houses in landmark neighborhoods such as Brooklyn Heights, Cobble Hill, Carroll Gardens, Boerum Hill and Park Slope. And historic buildings that have been modernized always carry a premium.
What does this mean for sellers? If you‚Äôve been waiting for some market recovery, here it is–so now may be a good time to sell, before more supply is added to the market. Buyers should also consider jumping in–we‚Äôve clearly passed the bottom of the market, and prices are recovering. For both groups, it‚Äôs important to do your homework about what‚Äôs happening in the market and your neighborhood, and, of course, to assess your personal and financial situation and objectives.