The gloves are off for house hunters in Brooklyn.
Last month, one in four homes in the borough sold for more than the asking price — a metric that typically indicates a property is trading after a bidding war. Of the ten neighborhoods in New York City where the highest share of homes sold above asking price, six were in Brooklyn, according to one study. Streeteasy report published on Thursday.
The increased competition among buyers is a natural next step for the borough’s housing market, where prices have risen since pandemic changes boosted demand. Brooklyn recorded nearly 500 inked deals in September, an 11 percent increase over the same period last year.
Some high-profile buyers have even traded their Manhattan homes for blocks in Brooklyn, setting new records. Last year, Glossier founder Emily Weiss and her partner, fintech executive William Gaybrick, paid $22 million for a townhouse in Brooklyn Heights, just five months after purchasing an $18 million home in Greenwich Village, which they then put back on the market.
Prospect Heights claimed the largest share of homes sold above asking price at 47 percent. The average asking price was $1.3 million. Earlier this year, Redfin named the neighborhood, along with neighboring Clinton Hill, the most desirable neighborhood in the country. The number of home sales in the enclave has doubled in one year.
Next was Park Slope, where 44 percent of homes sold above asking price. A townhouse at 535 First Street broke neighborhood records last month when Jared Vinik, the son of Tampa Bay Lightning owner Jeff Vinik, bought it for $14 million.
Both Park Slope and Prospect Heights ranked higher in homes with closing prices above asking than some desirable Manhattan enclaves, including the West Village and Greenwich Village.
Rounding out the top five on Streeteasy’s list was Brooklyn Heights, long known for its expensive city housing, where 33 percent of homes sold above asking price. The other Brooklyn neighborhoods included were Crown Heights, Williamsburg and Sheepshead Bay.
The housing market in the five districts is entering the fourth quarter with promise. More than 1,700 home buyers were found last month, an increase of 10 percent over figures from a year ago, and the highest total for September since 2021.
So far, it appears that supply is keeping pace with demand, with approximately 4,600 homes coming onto the market last month, a 10 percent increase over last year.
Not so fast…
Just what the West Village needs: another double-wide townhouse.
A 13,000-square-foot home nearby hit the market Friday with a price tag of $75 million. If it trades at that price, it will set a new record for Downtown Manhattan, replacing another mega-mansion that sold for $73 million last year.
Before the house at 105-107 Bank Street was combined into one, each side of the monster residence housed its own legendary residents, including John Lennon and Yoko Ono and composer John Cage.
The creation of these massive single-family homes has drawn criticism, especially in recent years as the city faces a housing shortage. In Manhattan, researchers found that the municipality lost between six and seven housing units for each of these combinations.
NYC deal of the week
The most expensive deal reported in city records this week was for a penthouse at 111 West 56th Street, which sold for $12.3 million, or $4,400 per square foot. The apartment, which hit the market last April for just under $15 million, has four bedrooms, four bathrooms and two terraces.
Unit PHC is one of 99 apartments on top of the Thompson Central Park Hotel. Amenities at the project, known as One11 Residences, include a fitness center, private lounge and access to the hotel’s concierge service.
Maria Mainieri of Douglas Elliman, Taylor Middleton and Peter Evangelidis are leading sales for the developer, GFI Capital Resources.
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