The retail market also has a long way to go, but there are bright spots in Brooklyn and Queens.
Both Brooklyn and Queens set new median sales prices in the last quarter of 2020, because more buyers were looking for more space outside Manhattan at relatively lower prices.
The median sale price was $ 875,000 in Brooklyn, up 9.4 percent from a year ago, and $ 668,000, a 9.5 percent jump, in Queens. The median sale price in Manhattan was $ 1.05 million, an increase of 5 percent, but mainly due to an increase in new luxury sales – the launch and resale markets were anemic, Miller said.
The growing interest in neighborhoods outside of Manhattan, as well as the increase in sales seen in the suburbs surrounding the city at the beginning of the pandemic, could indicate a steady shift in New Yorkers’ shopping patterns, many of whom now have less reason to travel regularly to Midtown for work – and Brooklyn was a big recipient.
“It felt like something from 2006,” said Kristina Leonetti, a Compass agent who took part in a series of auction wars in Brooklyn last year in Brooklyn, reminiscent of the rush to buy before the Great Recession. “We didn’t expect this kind of reaction.”
StreetEasy predicted this in a new report eight out of 10 neighborhoods The track in 2021, based on user traffic and sales and rental prices, will be in Brooklyn. The most important markets were Greenpoint, Prospect Lefferts Gardens, Flatbush and Greenwood.
Brooklyn’s popularity was partly at the expense of Manhattan, where long-term tenants, attracted by almost record low mortgage rates and relatively affordable prices, were looking for deals, with less thought about commuting to Manhattan.
In Brooklyn, “we saw increased activity in the $ 500,000 to $ 2 million range, and it was no coincidence that we saw reduced activity in Manhattan in the fourth quarter,” said Garrett Derderian, director of marketing information for Serhant Brokerage.