Last year, the Brooklyn real estate market proved to be particularly strong, even rivaling Manhattan in terms of sales and competition. Closings in the borough rose 35% from the year before, with year-end apartment sales exceeding their record-high numbers from Q4 2020.
“It reached new records for both sales and prices,” said Gregory Heym, Brown Harris Steven’s chief economist. “And demand for townhouses was also very strong, as those prices also hit a new high.”
While outlooks for the Brooklyn market in 2022 are generally bright, some factors remain unpredictable.
For a comprehensive perspective on what to expect from the Brooklyn market this year, here are insights from several Brown Harris Stevens agents specializing in the area.
"I see active buying interest across all sectors of the Brooklyn market driven by first-time homebuyers and those migrating into Brooklyn from other areas. Given the strength of the market in 2020 and the acceleration in 2021, I expect demand to outpace supply in 2022 with continued upward pressure on prices. Macro factors like the economy, inflation, rates, and the pandemic may obviously change the dynamic, but without dramatic shocks to the system, I think we see continued momentum in the Brooklyn real estate market."
"Rates are supposed to hold into July, loan limits on one- to three-family homes were just increased nationwide, and Brooklyn is cool. I believe, because of these factors, the first half of the year is going to zoom! Borrowing power is up. Buyers have flocked to Brooklyn for the “cool” cachet for over a decade, and some who left for a season have returned.
Now, living happy and well is paramount and Brooklyn offers it all: Light, air, parks, culture, art, cuisine. We are the youngest, most highly educated, diverse borough—according to Mayor Eric Adams."
As we continue to live with COVID concerns, buyers still need to get on with their lives. I expect 2022 will be a very competitive year for Brooklyn buyers, especially for townhouses, as outdoor space and square footage continue to be a priority.
"I think we will see continued strong demand, especially in the townhouse market, and some pricing stability as we saw starting in the last half of 2021. The smaller studio and one-bedroom units will continue to be slow going."
See the Brown Harris Stevens Brooklyn market report for the fourth quarter of 2021. For the latest on the market, get in touch with one of our Brooklyn real estate experts.