2016 was also another record breaking year in Brooklyn real estate with average sale prices up 16% year-over-year! What will the spring of 2017 look like for buyers and sellers?
Cross any bridge from Manhattan to Brooklyn and you’ll see new buildings on the rise in every direction. The sale prices for those properties rose too, pushing Brooklyn’s year-over-year average sale price up 16%. While luxury new development sales pushed prices to record highs, the resale market showed smaller gains than we’ve seen in recent years with average prices up 8% for coops and 12% for resale condos. An increase in inventory certainly contributed to the slower growth (for example, condo inventory rose 23%) and resulted in longer time on the market for many properties. Paired with rising interest rates, there was a subtle shift in the market in 2016. Check out the link to the 2016 Year-End Corcoran Report for more detailed information on 2016 sales.
What does this mean for both buyers and sellers this spring?
Seller: My usual advice applies now more than ever: do not overprice your property! Concerns about rising interest rates will drive buyer urgency. And properties with asking prices that are smart and well-supported by previous sales will continue to sell fast and for the highest possible price. Buyers will worry about overpaying: if they see a price that’s out of line, they won’t even bother to come look. 2017 will be a strong market for sellers who stay realistic and don’t get crazy with their pricing.
Buyers: Educate yourself about what’s out there and what properties are really selling for. See as many homes as you can and pay attention to how quickly they sell (we can help you with this, of course!). By doing this, when you find the place that’s right for you, you can feel comfortable bidding fast and strong. Want to avoid a bidding war? If a property has been on the market for 4-5 weeks, the seller may already be contemplating a price drop and will be willing to negotiate. Sometimes, a good offer in week four or five can preempt a price drop and you’ll pay less than you might be forced to pay a week or two later after a lower price sparks renewed interest.