B
rooklyn Real Estate Market Report: 2Q 2025

    The Brooklyn real estate market started the second quarter with strong momentum, but as economic and political uncertainty grew, activity began to slow. Despite a decline in contract signings and closings year-over-year, the borough's lasting appeal remains evident, reflected in resilient resale pricing and consistent demand for homes under $1 million.

    According to Michael Sorrentino, SVP, General Sales Manager, NY, "Motivated buyers and sellers should continue to discover valuable opportunities in this dynamic environment." However, market sentiment eroded as the quarter progressed due to current economic and political challenges.

    Contracts signed fell 5% year-over-year to 1,048 deals, while closings dropped to a 12-year second-quarter low, down 17% to 1,169 sales. The decline in closings led to an annual decline of 19% in sales volume. New development sales and resale condo/co-op sales were down 41% and 11%, respectively.

    Inventory constraints are also impacting sales, with a 1% year-over-year decline to 1,862 active listings for the first time after four quarters of increases. Homes priced under $1 million experienced a 7% annual decline, leading to increased competition in an already tight market. Conversely, inventory increased in more expensive submarkets, such as Fort Greene, Clinton Hill, and Prospect Heights, rising by 37%.

    Pricing in Brooklyn has edged downward due to a slowdown in new development sales. The median price fell 3% annually to $810K, while the average price dropped 2% year-over-year to $1.085M, still one of the highest figures in the past three years. Resale co-op median price rose 7% to $494K due to a greater share of sales over $750K, and resale condo median price was up 5% due to an expanding share of sales over $1 million.