Overall Brooklyn Market Update: APRIL 2025

Brooklyn's Spring Market: Momentum Builds, But Pace Remains Measured

Brooklyn’s real estate market is entering the spring season with signs of acceleration, even as year-over-year metrics reflect a more tempered pace compared to recent years. March brought a 16.4% month-over-month jump in signed contracts, signaling that buyer activity is ramping up in line with seasonal trends. However, contract activity still trails last year by 2.5%, and sits at just 59% of 2022 levels—underscoring a market that’s gaining momentum but still adjusting to the long tail of elevated interest rates.

Inventory is finally showing signs of seasonal growth, with the number of active listings rising 9.8% from February and up 8.2% year-over-year. March also marked a 20% increase in new listings compared to the same time last year, which offers some relief for buyers. Still, total supply remains well below pre-2022 levels, reinforcing the borough’s long-term trend of limited inventory. This modest expansion should be viewed as a brief window of opportunity—particularly for buyers hoping to transact before competition peaks later in the season.

Pricing remains steady, despite minor fluctuations. The median price per square foot dipped 1.5% month-over-month to $954, yet remains 3.2% higher than this time last year. This suggests that Brooklyn is experiencing a short-term plateau, and sellers can point to long-term appreciation as a pricing anchor. At the same time, buyers may find short-term leverage on listings that are lingering or slightly mispriced.

The median listing discount rose slightly to 4.1%, its second-highest level since April 2023. This reflects modest buyer negotiation power—but one that may fade as demand intensifies into late spring. Sellers who price accurately from the outset continue to transact faster and closer to their asking price, while overpricing leads to longer time on the market and eventual concessions.

On the rental front, the market remains hot. Median rent climbed 2.9% month-over-month and year-over-year to $3,600, while average rent per square foot hit a record high for the second consecutive month. More than one in three rentals are now entering bidding wars. Landlords are firmly in control, with rising inventory doing little to relieve pressure. Renters need to act decisively and may find more favorable terms by exploring emerging neighborhoods or new developments.

Elegran | Forbes Global Properties Brooklyn Leverage Index

The Elegran | Forbes Global Properties Brooklyn Leverage Index² is powered by four indicators: supply, demand, median price per square foot (PPSF), and median listing discount.  

It informs us whether the current is a buyer’s or a seller’s market, i.e., which party possesses transactional leverage.  Looking at the graph below, this is indicated by the direction of the curve, where:

- An increasing trend from left to right indicates a seller’s market

- A decreasing trend from left to right indicates a buyer’s market

Our indicator also informs us regarding the relative strength of that leverage, indicated by the slope of the curve, where:

- A gentle slope indicates a weak advantage by one party over the other

- A sharp slope indicates a strong advantage

It's not just the exact numbers that matter - it's the direction and slope of the trend. For the past three months, Brooklyn has held steady in a state of equilibrium, with no clear edge for buyers or sellers. In March, sellers briefly gained a slight advantage, but that edge may be fleeting. Supply is now rising faster than contracts are being signed—an early signal that the balance could soon tip back.

Brooklyn Supply

Seasonal Growth Creates a Window of Opportunity in a Tight Market

Brooklyn’s housing supply climbed 9.8% in March to 3,216 active listings—marking a seasonal uptick and an 8.2% increase year-over-year. The surge reflects both slower contract activity and a 20% rise in new listings compared to March 2024. While this hints at modest relief from tight inventory, context is key: supply remains well below 2021–2022 levels, reinforcing Brooklyn’s long-term trend of constrained inventory. March’s growth should be seen not as a shift toward surplus but as a brief expansion within a still-limited market.

What This Means for You: 

BUYERS: This seasonal inventory boost is your moment to act. With 9.8% more listings than in February, you’ll find greater variety.  But don’t be fooled: desirable, well-priced, and positioned homes are still moving quickly, especially in prime neighborhoods.

SELLERS: More listings may be entering the market, but supply remains historically low—your leverage is still intact. Strategic pricing, strong marketing, and standout presentation are critical. The homes that shine continue to draw attention and strong offers.

Looking Ahead: 

Inventory is likely to rise into early summer before leveling off. For buyers, late spring may offer the best selection. For sellers, listing now means capturing motivated spring buyers before competition peaks. Despite more listings, Brooklyn’s overall inventory remains tight, which should help support pricing in most neighborhoods.

Brooklyn Demand

Spring Market Gains Momentum—Even as Year-Over-Year Pace Eases

Brooklyn’s contract activity jumped 16.4% in March, totaling 589 signed contracts—a clear signal that the spring market is heating up. While this growth aligns with seasonal trends, it also comes with a note of moderation: contract activity is down 2.5% compared to March 2024, and just 59% of what we saw in March 2022, before interest rates began rising. Demand remains solid, but the data points to a gradually rebalancing market.

What This Means for You:  

BUYERS: With slightly less competition than this time last year, now is your chance to move strategically. The market is gaining speed, and the 16.4% monthly jump means homes are getting snapped up faster. If the right property comes along, don’t hesitate—well-priced homes are still commanding strong interest.

SELLERS: Buyer activity is rising seasonally, even if slightly cooler than last year and years past. Presentation and pricing remain key: homes that show well and are competitively priced are still moving quickly, often with multiple offers.

Looking Ahead: 

Expect contract activity to continue climbing into April and May. While not matching the intensity of 2021 or 2022, the current pace reflects a healthier, more sustainable market. High-quality listings will continue to perform well, while less competitive homes may need sharper pricing or improvements to stand out.

Brooklyn Median PPSF

Long-Term Price Resilience, Short-Term Opportunity

In March, Brooklyn’s median price per square foot dipped 1.5% month-over-month to $954—a modest fluctuation in an otherwise steady upward trend. On an annual basis, PPSF is up 3.2%, reinforcing the borough’s long-term price strength despite short-term market noise.

What This Means for You:

BUYERS: This slight monthly dip may offer a rare moment of opportunity in a generally resilient market. With prices still up 3.2% year-over-year, Brooklyn continues its long-term climb. Instead of holding out for major discounts, focus on finding well-priced homes in prime locations—value is still out there, and competition is rising.

SELLERS: A small monthly drop shouldn’t overshadow the broader story: Brooklyn real estate remains in demand, and prices have held strong year-over-year. Use this sustained growth to justify your asking price, but stay grounded in recent comps to stay competitive and attract serious buyers.

Looking Ahead: 

As spring demand builds, pricing is likely to firm up. The March dip looks more like a brief pause than a true shift. Expect stronger price support in neighborhoods with limited new inventory, high walkability, and lasting lifestyle appeal.

Brooklyn Median Listing Discount

Modest Room to Negotiate in a Stabilizing Market

In March, Brooklyn’s median listing discount edged up to 4.1%—a slight 0.1% increase from February and the second-highest level since April 2023. While this reflects a modest shift in buyer leverage, it’s likely temporary as spring activity picks up.

What This Means for You:

BUYERS: A 4.1% median discount gives you some negotiating room, especially on listings that have lingered. Sellers of older inventory may be more flexible—but don’t count on price breaks for newly listed, well-positioned homes in competitive areas. Be prepared to move quickly when you find value.

SELLERS: This slight uptick in discounts means buyers are testing pricing—but the market remains stable. Pricing right from the start is your best defense: homes priced correctly based on recent comps tend to sell faster and closer to asking. Overpricing can lead to longer time on the market and steeper negotiations.

Looking Ahead: 

As buyer demand increases through spring, discounts may tighten. The current 4.1% reflects a balanced market where serious buyers and sellers can meet in the middle. Homes with strong value propositions—great location, condition, and pricing—will continue to perform best.

Rental Remarks

Record Highs in Brooklyn Rents Fuel Fierce Competition

In February, Brooklyn’s median rent rose by 2.9% to $3,600—matching its year-over-year growth—and setting another all-time high for average price per square foot. Bidding wars hit a new peak, with over one in three rental listings receiving multiple offers. Meanwhile, both new lease signings and inventory climbed, underscoring the intensity of renter demand.³

What This Means for You: 

RENTERS: This is a landlord’s market. With more than one-third of rentals facing bidding wars, speed and preparation are essential. Be ready to act fast, offer competitively, and consider trade-offs in location or building type to secure value. Expanding your search to up-and-coming neighborhoods could help you stay ahead of the curve.

LANDLORDS: With pricing at record highs and demand rising, you’re in a powerful position. Bidding wars and rising PPSF give you leverage to hold firm on rents. Maximize exposure with professional marketing that highlights transit access, amenities, and unique features.

Looking Ahead:

Rents are poised to keep climbing into the busy summer season. While new inventory may create pockets of opportunity in emerging areas, demand continues to outpace supply. Landlords should expect sustained pricing power, while renters should act early to avoid further cost increases.

Mortgage Remarks

The 30-Year Fixed Rate JUMBO Mortgage Index currently stands at 6.75%⁴, while the average JUMBO Annual Percentage Rate (APR) stands at 6.31%⁵. Although rates rose in the fall and into the winter of 2024, there has been a slight decrease recently. Additionally, in late January, the Federal Reserve chose to keep interest rates unchanged rather than lower them.

The broader expectation is that rates will remain in the 6.5% range through this year and into the next, reflecting a shift in sentiment that higher rates are here to stay for the foreseeable future.

However, interest rates are no longer the primary catalyst for market activity. Instead, buyers and sellers are adjusting to the new normal, making decisions based on personal needs and timelines rather than waiting for further rate drops. This shift signals a market driven more by necessity than speculation, reinforcing steady transaction volume despite elevated borrowing costs.

Investor Insights

The total return on real estate investments is driven by net rental income and capital appreciation. Manhattan cap rates are currently between 3% and 3.4% for all-cash investors. Unfortunately, investors using a large percentage of leverage face challenges in generating net income, given the average JUMBO mortgage APR of 6.31⁵%. Timing and a strong USD may afford foreign investors, depending on their native currency, the opportunity to realize significant capital gains upon selling their assets.

References

1. Data courtesy of UrbanDigs

2. According to the Elegran | Forbes Global Properties Brooklyn Leverage Index

3. Data courtesy of Miller Samuel, Inc.

4. Data courtesy of Federal Reserve Bank of St. Louis

5. JUMBO mortgage rate APR data courtesy of Bank of America, Chase, and Wells Fargo

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feel free to contact us at info@elegran.com or 

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