The New York City real estate market picked up steam in the first quarter of the year, driven by a release of pent-up demand from the election cycle, historic highs in the stock market, and a fear of future interest rate rises.
I've seen increased activity in virtually every sector of the market in Manhattan and Brooklyn and increased prices on certain individual deals versus comparable sales from last year.
With that said, the Brooklyn luxury market, which I define as sales at and above $2 million, had a mixed first quarter with some trophy and potentially record-breaking sales, and inconsistent year over year data in March, the unofficial start of the spring selling season.
There were 107 sales of units at and above $2 million in Brooklyn in the first quarter of 2017, representing a total asking price volume of approximately $349 million and an average asking price of approximately $3.3million.
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Brooklyn Heights dominated the first quarter, head and shoulders above any other neighborhood in the borough, with approximately $117 million in total sales of units north of $2 million.
A 7,000 square-foot townhouse at 27 Monroe Pl. went to contract with an asking price of $16 million, making it by far and away the most expensive home to go to contract in the borough in the first quarter.
Developed by Kushner Companies, the house is 25 feet wide and features an elevator, five bedrooms and six bathrooms. If it sells at its asking price it would be the highest-priced sale ever in borough history, overtaking a $15.5 million sale on Pacific St.
Numerous closings at the Pierhouse at 90 Furman St. as well as sales at the Standish at 171 Columbia Heights pushed Brooklyn Heights to the top spot.
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An $11.7 million sale of the 10th floor at the Standish was the second-most expensive unit to go to contract in the quarter. The five-bedroom, four-and-a-half bath luxury condo has 360 degree views and is housed in the former hotel-turned luxury building. DDG converted and designed the building into 32 condos with sales launched in Fall 2016.
Park Slope, primarily dominated by sales of unrenovated townhouses, took the second spot with approximately $57 million in asking price volume. The most expensive sale in the leafy low-rise neighborhood to go to contract in the first quarter was 371 1st St., asking $4.8 million. With 4,000 suare feet, five bedrooms and five- and-a-half baths, the house is one of the few recent gut renovated homes to come to market in the neighborhood.
Williamsburg and Bedford-Stuyvesant more or less tied for the third position, with approximately $29 million and $27 million in sales, respectively.
Williamsburg, somewhat beleaguered by last year's news of the impending L train shutdown, has seen a significant decline in luxury sales in the past 12 months. Bed-Stuy, conversely, continues to gain momentum as a destination for brownstone buyers looking for an affordable alternative with some incredible housing stock.
Historic Brooklyn brownstones dominated luxury sales in Oct.
March, typically the beginning of the spring selling season, showed a decline in the total sales volume year over year. In March of 2016 approximately $128 million went to contract as compared to roughly $122 million this year, representing a roughly 5% decline in total volume.
The average sales price fell approximately 7% year over year, while the number of unit sales (37 vs. 38) of properties over $2 million was relatively constant. Average days on the market hit 99, a 24% increase year over year, and the average dollar per square foot ($PSF) for luxury units declined 8% year over year.
Ari Harkov is a real estate broker with Halstead Property and heads up the Harkov Lewis Team, along with his business partner Warner Lewis, one of the top teams in the nation as ranked by the Wall Street Journal. The team, which focuses on residential sales in Manhattan and Brooklyn, works with both individual buyers and sellers and developers. Ari holds an MBA with honors from Columbia University and currently resides in Park Slope, Brooklyn, with his wife, two sons, and dog.
Saturday, April 22, 2017