As demand for apartments continues to go up in New York, many people who are looking for high-end apartments are looking beyond Manhattan to the outer boroughs. As a result, apartment prices in Brooklyn are going up significantly. According to a recent survey, the median price of an apartment in Brooklyn is now $676,250 — a record high and a 15.1 percent increase from last year. Queens is also seeing significant price increases. The median there is now $450,865, a 14.1 percent increase from the same time period last year.
Summer is traditionally a slow season in residential real estate, but not this year in New York’s outer boroughs. The number of residential property sales was up significantly in Brooklyn and especially in Queens, which saw an increase of 64.6 percent in the third quarter. The suburbs are also seeing increased sales. In Westchester County, for example, sales are up 5.5 percent from last year.
Lack of sufficient inventory coupled with continuing strong demand is said to be the main reason for the rising prices. The president of a real estate appraisal firm said in a news report that he doesn’t think people are being priced out of Manhattan; he believes Brooklyn has become a more attractive destination in its own right.
Buying a New York apartment is a significant investment. Having experienced legal counsel can be very helpful. A knowledgeable New York real estate attorney can review the proposed purchase agreement, financing documents, deed and closing documents for the purpose of identifying any potential issues for buyers. If any potential issues can be cleared up on the front end, before closing, it can often save the buyer a lot of expense and aggravation later on.
Source: New York Magazine, “Brooklyn Real Estate to Manhattan: ‘What’s Good?’” S. Jhoanna Robledo, Oct. 10, 2015