At six months after the resumption of in-person showings, the Brooklyn real estate market picked-up right where it left off before the Spring’s pandemic pause, and exceeded our expectations for the speed and strength of its rebound. The year ended with Fourth Quarter closings up 12% year-over-year, after two consecutive quarters with declines of over 30%. There were year-over-year gains in contracts signed since August that extended into the final three months of the year, which built up to 8% more sales volume than last year’s 4Q. Anecdotally, there was stiff competition for properly priced homes. Brooklyn is benefiting as buyers shift to seeking more space and better values, as opposed to proximity to workplaces at higher prices.

Fourth Quarter 2020 home inventory increased to a nine year high. As of late December, 2,584 apartments were on the market— 23% more than a year ago. There was a significant increase in the number of listings compared to a year earlier priced between $1M and $2M. The top-end of the market has rebounded the fastest. With 30% of closings trading for above $1M this quarter—the second highest share on record for Brooklyn—median price spiked 13% annually to $780,000, itself the highest figure on record! Nearly 90% of closings over $1M were for contracts signed since mid-March, indicating a demand for larger homes; average price per square foot also increased 4% annually as buyers also gravitated to high-quality apartments in prime locations.