Quelle suprise—real estate prices are up in Brooklyn.
A new report from the Ideal Properties Group shows the average price for a residential property in Brownstone Brooklyn and North Brooklyn was $1.6 million in the third quarter of 2017.
That’s a 16.7% increase from this time last year.
“The summer and early fall time is always a popular one for real estate transactions,” stated Aleksandra Scepanovic, Ideal’s managing director, “We expect the momentum from this quarter to continue through the rest of 2017 and beyond.”
Despite the new highs, 34 percent of all sales in the third quarter were in the range of $500,000 to $999,000—the highest percentage of any price range.
The report found that Park Slope, Williamsburg and Brooklyn Heights, respectively, had the most sales.
While some expect the momentum to continue, other investors are seeing their returns narrow, and the bubble may be slowing down. The Daily News reported that investment in Bed-Stuy, which has led to incredible growth, is now slowing down, and investors are worried about their margins.
But it’s all trending upwards, as development and rezoning continue to shape the city. When one bubble bursts, another is sure to start.
“I think we’re still in the 2.0 phase,” Michael Amirkhanian of Cushman & Wakefield told the Daily News, “There’s still 3.0 and 4.0 to come.”