Fort Greene, a neighborhood in Brooklyn that lies east of Dumbo and downtown Brooklyn and north of Prospect Heights and Boerum Hill, has seen a significant rise in property prices. Recent housing developments and its reputation for having it all, including transportation, green spaces, brownstones, row houses, recreation, tasty food, and nightlife, have ensured its real estate prices continue to rise. Thus, Fort Greene has remained one of Brooklyn’s most expensive neighborhoods.
This rise seems destined to continue and suggests that despite the soaring prices, housing investors are still interested in Fort Greene homes for sale with its irresistible blend of historical and modern architecture.
Brooklyn real estate trends
Brooklyn is one of the most desirable neighborhoods in New York City, and there is no shortage of investors, homeowners, and renters interested in purchasing property or making Brooklyn their home. Buyers are adjusting their requirements in response to an economic climate where housing investors face depleted inventory, increased mortgage rates, and soaring prices. There has been an increase in interest-only loans while the luxury market favors cash buyers. Buyers are still looking but seem willing to wait for the price to drop.
The surge of people looking to settle in Brooklyn has led to a decrease in housing inventory, now at its lowest level in a decade. Third-quarter inventory figures for 2022 were also their lowest in a decade, sliding 22.2% year-over-year. Homes for less than a million saw inventory decline more rapidly than the inventory for homes over a million. This has made competition for housing even stronger throughout the borough, driving days on the market down.
Buyers still interested in buying property are gravitating towards homes at a lower price point, shifting the median and average prices down. The average house price dropped for the first time in 3 years in the third quarter. The rise in sales of resale co-ops remains.
Trends in Fort Greene real estate
The median price for a home in Fort Greene for the third quarter of 2022 was $1.2 million, significantly higher than the Brooklyn median of $819,000. This median was up 27% from last year. The median price per square ft was $1,146, up 5% from last year.
And yet there were only 28% housing transactions in 2022, down from the year before, suggesting fewer people were buying homes in Fort Greene this year. Sales activity in Fort Greene was also down due to a shrinking inventory which reached its lowest level in seven years. Because housing inventory could not keep pace with the demand for properties in Fort Greene, active listings dropped. The days a property stayed on the market also fell. Ironically, housing sales in Fort Greene have slowed down because there is just too much demand for Fort Greene properties.
As inventory for brownstones and row houses decreases, Fort Greene’s new development has seen a rise in high-end, luxury high-rises.
Fort Greene real estate investment opportunities
Brooklyn’s multi-family house prices rose faster than the rest of the market, with high-quality units commanding higher prices than similar units in other boroughs. Despite growing prices and a slower housing market, there is still potential for real estate investment in the coming years. The housing market continues to grow. By 2023 the average cost of a multi-family home in Brooklyn is expected to grow to $1,500,000.
The rental market also shows staying power. The average rental price in Fort Greene is down slightly this past month. But rentals are still higher than average. Average rent prices are $2,431 for a studio, $3,164 for a one-bedroom, and $4,530 for a two-bedroom.
The future of real estate in Fort Greene
House prices are likely to drop as the slowdown the housing market has witnessed in 2022 continues. Due to low inventory, prices could decrease at a slow rate or even remain flat. There is still plenty of potential for buyers waiting to see if the housing market cools from the surge that has occurred over the past few years. But while the housing market no longer favors sellers, it does not mean it has become a buyer’s market. Things are more evenly balanced thanks to low inventory.
Even as the housing market slows, there are still opportunities for real estate investors and homeowners.
Despite a slowdown, the third quarter of 2022 saw record sales in Brooklyn properties. Although there was a slide in sales, Brooklyn and its neighborhoods remain a desirable place for buyers and renters. While the percentage of sales was down, closings remained strong.
Despite a slowdown in sales in the third quarter of 2022 and a limited inventory of brownstones, new high-end development sales offset the decline. Consequently, prices for Fort Greene real estate remain high, and Fort Greene real estate remains a lucrative investment.