What I’m seeing in Brooklyn’s market right now is that there are two very different things happening between the higher and lower price points.
The luxury segment (over $2M) is still driving a lot of activity, while the lower end is experiencing a noticeable slowdown. Signed contracts above $2M have increased 33% year-over-year, while activity below $2M has declined by that exact same amount. Three-bedroom homes and townhouses in the $3M to $5M range are performing incredibly well, especially in certain neighborhoods where they are garnering multiple offers over asking price.
Inventory has improved and loosened up a bit from the extreme lows of the past few years, but supply is still below historical averages overall. At the same time, contract activity is down roughly 25% across the board, and much of that slowdown is happening below the $2,000,000 threshold.
Affordability vs. Confidence
A big reason for this is uncertainty. Inflation, higher day-to-day costs, global instability, and mortgage rates that are still relatively high are impacting buyers at the lower end of the market much more directly.
What’s interesting is that this isn’t just about affordability. It’s also about confidence. Many buyers, especially in the lower price range, are asking themselves: “Even if I can buy, should I buy right now?” In uncertain moments, people tend to pause before making big financial decisions.
Higher-end buyers are generally less impacted by these pressures. They’re often less rate-sensitive and better able to absorb economic volatility, so they continue to move when the right property comes along.
The Value-Focused Buyer
Buyers in the lower price ranges have become incredibly value-focused. Many are in rentals they can still afford, or already own homes they don’t feel desperate to leave. As a result, they’re waiting, watching, and only moving on homes that feel like truly good value.
Inversely, Brooklyn’s rental market remains extremely tight and expensive, which is pushing some buyers into the purchase market out of sheer necessity.
What is Moving Competitively?
The homes performing best in the lower price points are the ones that feel like a real value—well-priced, easy to live in long term, and without too many compromises. Buyers are scrutinizing everything right now: location, monthly costs, renovation needs, layout, and overall livability. If something feels overpriced or imperfect for the price, buyers hesitate. But when a property feels like genuine value, buyers are still moving quickly and competitively.
Properties performing the very best are three bedroom homes and properly priced townhouses.
