Ideal Properties Group - Market Report 2Q 2014

5/23/2018 Ideal Properties Group - Market Report 2Q 2014

1/13


2/13

2nd Quarter 2

QUARTERLY SALES MARKET REPO

WORDS FROM THE MANAGING DIRECTOR

As Brownstone Brooklyn braces for the industry-projected undersupply of new development inventory, burgeoning neighborhshowed strong activity this quarter.

Still, Park Slope was the true pivot point of Brownstone Brooklyns completed sales, accounting for the highest number of sales area.

Market-wide, Brooklyn has registered a modest growth. Not limited to any key neighborhoods in particular, the average year-ovegrowth testifies to the boroughs continued shortage of supply of real estate product.

1

Aleksandra Scepanovic

Managing Director | Ideal Properties Group

232 Court Street, Brooklyn NY 11201 | 78 7th Avenue, Brooklyn NY 11217 | 462 Third Avenue, Brooklyn NY 11215 | 362 Bedford Avenue, Brooklyn NY 11

w w w . i d e a l p r o p e r t i e s g r o u p . c o m | p h 7 1 8 . 8 4 0 . 2 7 5 7 | f a x 7 1 8 . 2 2 8 . 9 3

REDHOOK

GREENWOODHEIGHTS

CARROLL

GARDENS

CLINTONHILL

FORT

GREENE

GOWANUS

PARK

SLOPE

DUMBO

COBBLE

HILL

PROSPECTHEIGHTS

PROSPECTPARK

BROOKLYNHEIGHTS

BOERUM

HILL

WINDSOR

TERRACE

COLUMBIA

WATER

FRONT

DOWN-

TOWN

BROWNSTONE

BROOKLYN

GREENPOINT

WILLIAMSBURGEAST

WILLIAMSBURG

NORTH

BROOKLYN


3/13


The sales market in Brownstone Brooklyn continued to expand in the second quarter 2014. Both average and median values tipupwards, with average sales prices edging 2.7 percent to $1,160,532, and median levels increasing 7.2 perce$905,000 from the previous quarter. Average prices per square foot accelerated by 8.7 percent to $900, while median pricesfrom $808 per square foot to $884, gaining 17.1 percent.

Actively fueling the pricing levels registered by individual apartment (condominium and co-operative) markets, 2Q 2014 proved a quieter quarter for Brownstone Brooklyns townhouses. Quarter-over-quarter, average townhouse prices slipped by 4.2 perc$2,113,527.

Even so, the upward year-over-year streak is particularly evident within this segment of inventory, the average pricing moredoubling relative to 2013 (up 107.2 percent year-over-year).

To an extent attributable to the flattening of the townhouse market, co-operative units gained momentum, further solidifying the gand indicating enduring stability. Buyer confidence captured, the segment registered a 6.5 percent uptick quarter-over-quarter average level of $687,093, a 71.1 percent increase year-over-year.

EXPANSION TIPTOES UPWARDS



2nd Quarter 2

BROWNSTONE BROOKLYN AND BEYOND

ALL ASSET CLASSES

AverageSale Price

MedianSale Price

Average Priceper Sq Ft

2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

1,160,532 905,000 900

905,000 900

26.6% 18.3%

844,000 828

714,811 761

ALLSALES

2.7% 7.2% 8.7%

Median Priceper Sq Ft

884

884

17.1%

808

755

9.4%

1,129,776

1,160,532

27.5%

909,973

$

ONE- TO THREE-FAMILY HOMES (TOWNHOUSES)

AverageSale Price

MedianSale Price


2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

2,113,527 1,935,000 785

1,935,000 785

95.5% 23.2%

1,962,500 808

990,000 637

ALLSALES

-4.2% -1.4% -2.8%


712

712

17.7%

717

605

-0.7%

2,205,165

2,113,527

107.2%

1,019,876

$

CO-OPERATIVE UNITS

AverageSale Price

MedianSale Price


2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

687,093 640,000 776

640,000 776

56.1% 27.8%

539,000 708

410,000 607

ALLSALES

6.5% 18.7% 9.6%


747

747

23.1%

694

607

7.7%

645,446

687,093

71.1%

401,667

$


4/13


Perhaps in anticipation of the industry-projected undersupply of condominium inventory in Brownstone Brooklyn, or possibly eqreflecting the softening of the townhouse market, the condominium market also posted gains. Although the year-over-year strengthfell short of impressing as much as the cooperative market, condo units median price per square foot rose 35.5 percent to $1relative to the same period last year, and 28.5 percent quarter-over-quarter.

A slight shift in orientation from townhouses to condominiums largely due to extremely limited inventory and galloping pricitownhouses resulted in condos making a comeback in popularity in 2Q 2014. Condos spent fewer days on the market and fehigher prices both per unit and per square foot.

Entering the busy summer, the closingprocess (average time lapse from date oflisting to sale closing date) has faintlyaccelerated this quarter by an averagefive days (or 0.8 percent).

This is particularly true of condominiumunits, which have registered a six daysboost (nine percent quarter-over-quarterand 29 percent acceleration year-over-year). The outlook for townhouses remains

positive, although the asset took onaverage nine additional days to close, upseven percent to 129, while co-operativeunits posted a 8-day slowdown, taking125 days to close, up four percentquarter-over-quarter.



2nd Quarter 2

CONDOMINIUM UNITS

AverageSale Price

MedianSale Price


2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

1,079,517 907,500 1,017

29.6% 31.1%

865,000 908

700,000 776

ALLSALES

10% 4.9% 12%


1,038

35.5%

808

766

28.5%

981,661

18.9%

907,831

$

1,079,517 907,500 1,017 1,038

BROWNSTONE BROOKLYN AND BEYOND

DAYS ON MARKET: AVERAGE ELAPSED TIME

AverageDays on Market

% Change1Q 2014

% Change2Q 2013

BRO

WNSTONEBROOKLYN Asset

Class

Townhouses

Co-Operative Units

Condominium Units

129

125

102

7%

4%

-9%

12%

-12%

-29%

All Asset Classes 119 -0.8% -16%

CLOSING TIMES FAINTLY ACCELERATE

EXPANSION TIPTOES UPWARDS


5/13

Heavily favored by themarket in two previousquarters, townhousesare registering ascaling back in 2Q2014, trading for anaverage $91,638 lessrelative to the previousquarter. The medianlevels have also slightlydropped by $27,000,to $1,935,000, whilethe average and

median prices persquare foot have mostlystagnated ($785 thisquarter v. $808 on theaverage end, and$712 this quarter v.$717 median).




2nd Quarter 2

Average PPSF Median PPSF

Average & Median Price Per Square Foot ($)

2Q 14 1Q 14 2Q0

$637 $785 $712 $808 $717

TOWNHOUSESBROWNSTONE & NORTH BROOKLYN

400

1,000

200

800

600

Average Sale Price Median Sale Pr ice

Average & Median Sales Price ($)

2Q 14 1Q 14 2Q 13

1,000,000

2,500,000

500,000

0

$1,019,876 $990,000$2,113,527 $1,935,000

1,500,000

TOWNHOUSESBROWNSTONE & NORTH BROOKLYN

2,000,000

$2,205,165 $1,962,500

APARTMENTS PRESS HIGHER, TOWNHOUSES SLOW DOWN

Continued demand andlimited inventoryafforded sellers ofco-operative units adegree of latitudeallowing them to list ateven higher levels, andachieve higher sellingpoints relative to thefirst quarter of 2014.

Selling at an average$687,093 in the

second quarter,co-operative units main-tained the upwardtrajectory, up $47,093quarter -over -quar ter,the year-over-yeargains an even morestaggering $285,426.



2Q 14 1Q 14 2Q0

$607 $$776 $747 $708 $694

CO-OPERATIVE UNITSBROWNSTONE & NORTH BROOKLYN

400

1,000

200

800

600



2Q 14 1Q 14 2Q 13

1,200,000

2,000,000

800,000

0

$401,667 $410,000$687,093 $640,000

1,600,000

CO-OPERATIVE UNITSBROWNSTONE & NORTH BROOKLYN

400,000

$645,446 $539,000


6/13




In line with theincreased appetite forBrownstone Brooklynshomes, condominiumunits also posted gainsacross the board, thep e r - s q u a r e - f o o tpricing, surpassing the$1,000 mark. Theaverage price ofcondo units surpassedthe $1M, likelyannouncing further

growth in the summermonths.

2nd Quarter 2



2Q 14 1Q 14 2Q

400

1,000

200

0

$776 $1,017 $1,038 $908 $888

CONDOMINIUM UNITSBROWNSTONE & NORTH BROOKLYN

800

600

2Q 140

Average Sale Price Median Sale Price

CONDOMINIUM UNITS


1Q 14 2Q 130

$907,831 $700,000$1,079,517 $907,500

BROWNSTONE & NORTH BROOKLYN

0

1,200,000

2,000,000

800,000

1,600,000

400,000

$981,661 $865,000

In general, Brownstone Brooklyns properties, in a lead-up summer months, continue to live up to the expectations and ptions of pricing increases.

This quarters sale-to-list ratio paints an image of a narrow maof Brownstone Brooklyns properties (51 percent) trading wdiscount from listing price. A testament to continuing bidding however, 39 percent of properties sold above, while the rema10 percent fetched the asking price.

Here is where we find evidence of Greenpoints increasing poity on average, properties in Greenpoint sold for four percentheir asking price. Greenpoints more developed neighbor, Wi

burg, commanded prices up to 11 percent lower than asking l

In 2Q 2014, the savvy buyer was to be found on the oppositof the sale-to-list spectrum in Windsor Terrace. The neighborhoods properties were selling with an average disco15 percent. Park Slope and Carroll Gardens commanded neaasking prices, trading with a one- and three-percent discount, rtively.

Traded with Discount

Traded at List Price

Traded Above List Price

ALL ASSET CLASSES: SALE-TO-LIST-RATIONumber of Sales: 2Q 2014 (%)

39%

10%

51%



7/13




Never stepping out of the bounds of tradition, the most popularhomes in the second quarter of 2014 were those selling between$500,000 and $999,999.

At the same time, a new standard seems to be solidifying in 2014:properties fetching over $1.5M participate at around (and slightlyabove) 20 percent in the sum of all sales. This segment of salesproperties is just one percent over being a virtual repeat of previousquarters, and a distant improvement in relation to the same quarterin 2013 (14 percent of all properties sold in that quarter sold at aprice at or over $1.5M).

The slight contraction of the bottom-priced properties is accommo-dated by a three percent expansion to a total of 18 percent thisquarter in the $1m - $1,499,999 range.

2nd Quarter 2

$1 - $499,999$500,000 - $999,999

$1m - $1,499,999$1.5m - $1,999,999

$2m +

ALL ASSET CLASSESSales by Price Range (%)

2Q 14

1Q 14

2Q 13

16% 48% 15% 7% 14

28% 44% 13% 7%

*Percentages may not sum to 100 due to rounding

15% 46% 18% 10% 1

42%

19%

BROOKLYN

ALL ASSET CLASSES: MARKET-WIDE BROOKLYAll Geographic Zones - Market Share (%)

39%BROWNSTONE & NOR

SOUTH

EAST

*Percentages may not sum to 100 due to rou

2Q

2014

A GLANCE AT BROOKLYN

Widely announced as a banner year for sales inburgeoning neighborhoods radiating from thetraditional epicenters in mature areas such as ParkSlope, Cobble Hill and Williamsburg, 2014 appearsto be showing strong activity this quarter in Downtownand Greenpoint. Properties in Downtown Brooklynaccounted for nine percent of all sales this quarter,while Greenpoint participated with seven percent.

Park Slope was the true pivot point of BrownstoneBrooklyns completed sales, accounting for the highestnumber of sales (22 percent of all sales) in the area.

Brooklyn Heights and Williamsburg followed, eachcontributing 13 percent to the pool of all closed salestransactions this quarter.

A look at the rest of Brooklyn reveals East Brooklyncontinuing to exceed expectations, ending the quarterwith a strong (13 percent) gain quarter-over-quarter,and up 43 percent over the year prior.



8/13

Average

Days on Market

% Change

1Q 2014

% Change

2Q 2013

BROWNSTONEBROOKL

YN

&NORTHBROOKLYN

AssetClass

Townhouses

Co-Operative Units

Condominium Units

136

125

102

7%

4%

-9%

12%

-12%

-29%



% Change1Q 2014

% Change2Q 2013

NORTHBROOKLYN

AssetClass

Townhouses

Co-Operative Units

Condominium Units

143

126

103

9%

no change

-10%

16%

-23%

-23%

All Asset Classes 114 -8% -14%

DAYS ON MARKET: AVERAGE ELAPSED TIME

FROM LIST TO CLOSE: AVERAGESBOERUM HILL

BROOKLYN HEIGHTS

CARROLL GARDENS

CLINTON HILL

COBBLE HILL

DOWNTOWN

DUMBO

FORT GREENE

GOWANUS

PARK SLOPE

PROSPECT HEIGHTS

WINDSOR TERRACE

GREENPOINT

WILLIAMSBURG

NORTHWEST

ALL ASSET CLASSES: BROWNSTONE BROOKLYIndividual Neighborhoods - Market Share (%)

2Q

*Percentages may not sum to 100 due to rou

BROWNSTONE

BROWNSTONE NORTH

2%

13%

6%

7%

9%

7%

9%

13%

7%

1%

22%

NORTH

1%

3%

1%




2nd Quarter 2

East Brooklyn outpaced its South counterpart, where thetownhouse and co-operative markets experienced a slightsoftening (with condominium units continuing on a strong

upward trajectory).

Market-wide, Brooklyn has registered a modest growth,its properties selling on average for $830,889, a 2.6percent increase from previous quarter. Not limited toparticular key neighborhoods, the average year-over-yeargrowth at 31.7 percent testifies to the boroughs shortageof supply and continued demand.


% Change1Q 2014

% Change2Q 2013

BROWNSTONEBROOKLYN Asset

Class

Townhouses

Co-Operative Units

Condominium Units

129

125

102

7%

4%

-9%

12%

-12%

-29%



9/13




2nd Quarter 2

SELECT NEIGHBORHOODS: AVERAGE AND MEDIAN PRICES


ALL ASSET CLASSES: PARK SLOPEAverage & Median Sales Price

600,000

900,000

1,200,000

1,500,000

300,000

0

$1,057,828 $815,000$1,321,159 $999,000 $996,696 $829,000

2Q 14 1Q 14 2Q 13


ALL ASSET CLASSES: WILLIAMSBURGAverage & Median Sales Price

0

$845,440 $702,500$1,319,614 $962,50000

2Q 14 1Q 14 2Q 13

$999,612 $950,000

600,000

900,000

1,200,000

1,500,000

300,000

0


ALL ASSET CLASSES: BROOKLYN HEIGHTS

Average & Median Sales Price

0

$1,031,841 $680,000$1,579,968 $1,200,000

500,000

1,000,000

1,500,000

2,000,000

2Q 14 1Q 14 2Q 13

$809,400 $550,000


10/13




2nd Quarter 2

EAST BROOKLYN

ONE- TO THREE-FAMILY HOMES (TOWNHOUSES)Average

Sale PriceMedian

Sale PriceAverage Price

per Sq Ft

Change

Change

680,017 610,000 259

37.9% 21.9%

442,500 212

ALLSALES

13.4% 19.6% 3.4%


243

30.2%

187

1%

37.1%

496,075

$

CO-OPERATIVE UNITS

AverageSale Price

MedianSale Price


Change

Change

301,000 300,500 296

35.4% 20.8%

222,000 245

ALLSALES

2% 23.9% 1%


251

2.4%

245

1.2%

39.1%

216,394

$

ALL ASSET CLASSESAverage

Sale PriceMedian


per Sq Ft

2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

683,487 607,635 300

607,635 300

41.3% 19.9%

467,500 271

430,000 250

ALLSALES

19% 30% 10.6%


266

266

25%

245

213

8.7%

574,362

683,487

43.2%

477,352

$

CONDOMINIUM UNITS

AverageSale Price MedianSale Price Average Priceper Sq Ft

Change

Change

624,086 434,219 620

24.5% 48.4%

348,816 418

ALLSALES

40.2% 35.2% 12.5%


620

83.5%

338

94.4%

48%

421,596

$

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

599,611 510,000 250 241

295,000 242,500 293 248

445,002 321,100 551 319

680,017 610,000 259 243

301,000 300,500 296 251

624,086 434,219 620 620


11/13




2nd Quarter 2

SOUTH BROOKLYN


AverageSale Price

MedianSale Price


Change

Change

694,549 640,000 327

600,000 305

ALLSALES


308

287636,385

$

CO-OPERATIVE UNITS

AverageSale Price MedianSale Price Average Priceper Sq Ft

Change

Change

197,972 187,500 289

-6.3% 6.3%

200,000 272

ALLSALES

-15.5% -8.5% 6.6%


244

-7.6%

264

-11.9%

-14.9%

232,764

$


Sale PriceMedian


per Sq Ft

2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

589,687 535,500 341

535,500 341

11.3% 6.5%

549,999 361

481,075 320

ALLSALES

-2.6% -2.6% -5.5%


320

320

8.5%

332

295

-3.6%

605,697

589,687

12.1%

526,000

$

CONDOMINIUM UNITS

Average

Sale Price

Median

Sale Price

Average Price

per Sq Ft

Change

Change

480,810 450,000 478

-1.4% 6.5%

456,300 449

ALLSALES

2.9% 4.5% 12.7%

Median Price

per Sq Ft465

4.3%

446

10.2%

-1.7%

488,982

$

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

732,054 699,000 349 325

234,330 205,000 271 277

467,290 430,440 424 422

694,549 640,000 327 308

197,972 187,500 289 244

480,810 450,000 478 465

-5.1% -8.4% -6.3% -5.2%

6.7% 7.2% 7.3%9.1%


12/13




2nd Quarter 2

MARKET WIDE: BROOKLYN


Sale PriceMedian


per Sq Ft

2Q 2014

Change

2Q 2013

2Q 2014

Change

1Q 2014

830,889 670,000 538

670,000 538

27.1% 27.2%

655,000 442

527,000 423

ALLSALES

2.6% 2.3% 21.7%


431

431

29.4%

430

333

0.2%

809,833

830,889

31.7%

631,123

$

CO-OPERATIVE UNITS

AverageSale Price

MedianSale Price


Change

Change

521,185 395,000 590

32.1% 43.9%

299,000 410

ALLSALES

11.9% 5.8% 34.7%


563

63.2%

345

35%

29.3%

402,951

$


AverageSale Price

MedianSale Price


Change

Change

881,126 675,000 382

18.4% 23.6%

570,000 309

ALLSALES

-9.5% -1.5% -9.9%


320

19.9%

267

-3.6%

27.2%

692,786

$

CONDOMINIUM UNITS

AverageSale Price

MedianSale Price


Change

Change

799,240 660,000 829

11.9% 23.7%

590,000 670

ALLSALES

18.9% 19% 16.8%


701

5.6%

664

34.3%

11.7%

715,594

$

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

2Q 2014

2Q 2013

2Q 2014

1Q 2014

973,778 685,000 424 332

465,769 373,500 438 417

672,045 554,500 710 522

881,126 675,000 382 320

521,185 395,000 590 563

799,240 660,000 829 701


13/13


232 Court Street, Brooklyn NY 11201 | 78 7th Avenue, Brooklyn NY 11217 | 462 Third Avenue, Brooklyn NY 11215 | 362 Bedford Avenue Brooklyn, NY 11


Data included in the rental market report focuses on the most competitive areas of Brooklyn, geographically concentratedthe largest extent in North and Brownstone Brooklyn. The report presents the focus area as part of the general overvie

the sales market of the entire borough of Brooklyn.Neighborhoods considered in the North section of Brooklyn are Williamsburg, Navy Yard and Greenpoint. Neighborhincluded in the Brownstone Brooklyn, the section on Brooklyn commonly referred to as Brownstone Brooklyn, are BoHill, Brooklyn Heights, Carroll, Gardens, Clinton Hill, Cobble Hill, Columbia Waterfront District, Downtown, DUMBOGreene, Gowanus, Park Slope, Prospect Heights, Red Hook, Vinegar Hill, and Windsor Terrace.

This report uses Brownstone Brooklyn and North/Brownstone to denote North and Northwest markets.

GEOGRAPHIC AREAS ANALYZED

This report analyzed closed (recorded) sales data of individual co-operative and condominium units, and one- to three-fatownhomes in Brooklyn. In preparation for the analysis, Ideal Properties Groups researchers identified and disqualifiedcompiled datasets any transactions that were not arms length in nature so as to minimize distortion of true market val

The report is based on a sample of 522 sales transactions recorded in the second quarter of 2014, and represent an anal

examination of the pricing trends in the Brooklyn real estate sales market as per the public records at the close of the quUnder no circumstances should any of the data presented herein be construed as reflective of, or utilized toward valuatioany specific or individual real property.

PROPERTY TYPES ANALYZED; METHODOLOGY

Rolling sales reports issued by the New York City Department of Finance (ACRIS), and the REBNY Listings Service (RLS) were used as primary data sources in the compilation of this Report. Portions of the report were additionally supplementeinformation obtained from Property Shark and other subscription services, as well as Ideal Properties Groups proprietarydatabase and details of individual sales transactions. The data used does not necessarily represent all sales transactiotheir respective categories.

DATA SOURCES

New York City Department of Finances Office of the City Register (OCR) records transfers of real property in Brooklyn. Tis, however, a significant lag between the sale (closing) date and its actual recording by the OCR. The lag ranging mere days to several months renders real-time reporting of the residential real estate market activity in the borough chaing. For the reasons of practicality and timeliness, data presented in this report represents a reasonable overview of the yfinal quarter of sales activity. The report is a snapshot of the market at the time of publishing. Data collected followinrecording dates are not appended or otherwise amended after the publishing of the report, since data collection continudate.

DATA LAG

As used in this report, average Days on Market is the time period between the date when a residential property is listesale, and the date its sale is recorded. Listing dates are not logged in as part of the public record kept by the ACRIS. REFSBO, co-operating broker websites as well as subscription-based industry services (StreetEasy, PropertyShark) were us

determine listing dates. Days on Market number presented in this report is not cumulative: the last known listing dateused as List Date. Additionally, listings with uncharacteristically long days on market, and listings that were de-listed than once in the 12 months preceding the sale date have been excluded from the report in an attempt to obtain true avelisting dates. Days on Market considered in this report measured only properties that sold (Time to Sale listings ratherTime on Market listings - the latter being all active listings within the analyzed timeframe).

All text, charts, graphs, data and any additional material presented in the Brownstone Brooklyn and Beyond is protected under U.S. Copyright Law. Express permission to reany of the text, images, or data contained in the Brownstone Brooklyn and Beyond report must be obtained in writing by contacting Aleksandra Scepanovic at 362 Bedford ABrooklyn, NY 11211, or via email [email protected]. Permission need not be obtained for fair use purposes, such as news reporting and noncommercial edupurposes. Any use for such purposes must properly credit Ideal Properties Group LLC. All material presented in the Brownstone Brooklyn and Beyond report is intended for inforpurposes only. While information is believed to be correct, it is represented subject to errors, omissions, changes, amendments or withdrawals without notice. All property inforincluding but not limited to number of bedrooms and square footage, is approximate.

DAYS ON MARKET

2nd Quarter 2

Ideal Properties Group - Market Report 2Q 2014

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