The Riolo Properties Team at Compass has released their monthly report on the property market in District 13 and District 15—your inside look at how Brooklyn real estate is moving this month!
Pictured above: 50 Lefferts Ave, Unit 6J
Have you heard of the K-shaped economy?
Economists have been using that phrase to describe what we are seeing in the broader economy right now. One group is moving upward, while another group is being squeezed. And we are seeing that same thing play out in the Brooklyn real estate market. The lower leg of the “K” is made up of people who would normally be moving. These are people who may want to add a bedroom, get more space, or make a lifestyle change, but higher mortgage rates, inflation, and the cost of living are making that very difficult. For many homeowners, the math simply does not make sense right now. They may have a low mortgage rate, and trading up would mean taking on a much higher monthly payment.
That has helped keep inventory very low.
On the other side of the “K,” you have buyers who are in a very different position. These are buyers who are flush with cash, often because of strong earnings, the stock market, or growth in equities. They are still able to come into the market and compete for the right properties, especially homes that are well-priced, in good condition, and move-in ready.
That is the split we are seeing in Brooklyn.
There are still relatively few listings in our districts, and the pace of signed contracts and closed sales does not really suggest that inventory is building in a way that would put meaningful downward pressure on prices. So even though some buyers are stuck on the sidelines, the active buyers are still keeping the market competitive.
This is part of why prices have continued to hold up. The lack of inventory and the presence of financially strong buyers are working together to keep the best properties moving.
If you want to hear a little more about what the K-shaped economy means for the Brooklyn property market, you can check out this Instagram Reel here.
For a synopsis of the June market report, see the graphs and statistics below.
In District 13, active listings edged down to 77 from 84 in May, while contracts signed settled at 48 after last month’s exceptionally strong performance of 60. The headline, however, is in the closings. Properties sold jumped to 73, up dramatically from 53 in May and the highest monthly total we’ve seen in over a year. Even with fewer new contracts, transactions already in the pipeline continued to close at an impressive pace. Simply put, demand remains stronger than the available inventory.
District 15 told a slightly different story. Inventory climbed to 100 active listings from 69 in May, giving buyers more choices heading into the summer months. Contracts signed eased to 55 from 67, but that’s still an exceptionally healthy number by historical standards. Closings came in at 59, only slightly below May’s 64, reinforcing that buyers remain committed even as the market becomes a bit more balanced.
As always, The Riolo Properties Team at Compass is here to help the Brooklyn Bridge Parents community achieve their real estate goals.
June Property Spotlight
A spacious pre-war co-op located steps away from Prospect Park, featuring charming period details, a renovated kitchen and bath, and a flexible layout.
Reach out for details about this listing: 50 Lefferts Ave, Unit 6J
District 13 residential listings & sales last 12 months
District 15 residential listings & sales last 12 months
Main Image: 50 Lefferts Ave, Unit 6J
