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n Brooklyn's third quarter market, cash sales dominated, bidding wars were common, and prices continued to rise. The borough's median sale price hit $975,000, a 4% year-over-year increase and its second-highest level in a decade. According to Jonathan Miller of Miller Samuel, this is part of a broader trend: over the last five years, Brooklyn has consistently had one of the highest prices in the city.

    One in four sales involved a bidding war, with homes selling for an average 6% above their asking price. While this didn't set a record, it was still higher than the previous two years. Miller expects mortgage rates to fall further due to the Federal Reserve's interest rate cut, which should boost transactions and potentially lead to another price record in the fourth quarter.

    The number of sales dipped 4% annually, but deals over $1 million rose 2%, while those below that threshold dropped 9%. Cash sales accounted for over half of all transactions, up 20% year-over-year. This is largely due to interest rates making mortgage financing less appealing, with buyers opting instead to use cash or equity withdrawals.

    A shortage of inventory has limited sales growth in Brooklyn, but a recent surge in listings could signal an end to the drought. Listings expanded 13% year-over-year, up from 2,600 to 2,900.