Brooklyn's real estate market demonstrated solid momentum in Q2 2025, offering key insights for both buyers and sellers navigating a complex market. With 2,468 recorded closings, a 4.7% increase from Q1 and a 2.1% rise year-over-year, the borough continues to demonstrate its resilience even amid ongoing economic uncertainty and tight inventory.
Luxury Homes Drive Market Gains:
One of the most striking trends this quarter was the surge in luxury transactions. Sales of houses priced between $2 million - $3 million rose by 36.2%, while homes priced above $3 million jumped by 34.3% year-over-year. This growth reflects a combination of new high-net-worth buyers entering the Brooklyn market and existing residents upgrading to larger, more premium properties.
Co-ops Outperform Expectations
Though co-ops account for the smallest share of Brooklyn's housing inventory, they were the standout performers in Q2. Sales jumped by 12.5% year-over-year, with the median co-op price soaring 42.1% to $780,000. The average price also increased by 28.5%, signaling a renewed interest in these often-overlooked properties, especially in Northwest Brooklyn neighborhoods such as Brooklyn Heights, Cobble Hill, and Clinton Hill.
However, the number of new co-op listings fell sharply by 27.5%, resulting in a 36.1% decline in signed contracts. This signals a critical opportunity for sellers to list while competition remains low and demand is high.
Condo Market Offers Buyer Entry Points
While overall condo sales declined 6.7% from the previous year, the average price remained steady at $1.35 million, and the price per square foot was $1,215. Notably, condos priced between $500,000 and $1 million saw a 3.8% increase in closings, highlighting continued demand in more affordable price brackets.
Buyers may find strategic entry points in the condo market, especially with new listings increasing 16.7% year-over-year. Inventory rose to 1,237 units, giving buyers more choices without substantial price inflation.
Housing Market Stability and Rising Prices:
The median sales price for houses increased to $1.2 million, a 6.6% year-over-year rise, while the average price reached $1.56 million, a 7.1% gain. Houses continue to dominate Brooklyn's residential landscape, accounting for nearly 50% of all transactions. With discounts averaging 7% and inventory up by 6.5%, savvy buyers still have room to negotiate even in a rising market.
Inventory Dynamics Reveal Seller Hesitancy:
Despite a modest 3.6% increase in overall listings, new inventory declined for houses (-6.5%) and condos (-3.3%), suggesting that many potential sellers are holding onto their low mortgage rates. This supply constraint supports price stability and highlights why well-positioned listings, particularly turnkey homes, are experiencing swift movement.
Neighborhood Highlights
-
Northwest Brooklyn (Cobble Hill, Boerum Hill, Brooklyn Heights) led in co-op activity with a 30% increase in sales.
-
North Brooklyn (Williamsburg, Greenpoint) saw a 24.6% rise in house sales and a 21.6% increase in co-op median prices.
-
East Brooklyn (Crown Heights, Bed-Stuy) posted a 21.1% year-over-year increase in median house prices, showcasing its growth potential.
-
South Brooklyn remains the most affordable submarket, with co-ops averaging just over $409,000 and condos under $750,000.
What Buyers and Sellers Should Know
For buyers, Q2 data shows that Brooklyn still offers a range of price points, especially in the co-op and mid-tier condo segments. Opportunities exist for those seeking value in neighborhoods with stable or growing inventory.
For sellers, particularly those holding co-ops or luxury homes, market timing remains favorable. Low listing volumes, combined with high buyer interest, suggest that now may be the optimal moment to list.
Thinking About Buying or Selling in Brooklyn?
If you're planning to make a move in Brooklyn, let's discuss your goals and how this data informs your strategy. Whether you're looking to enter the market, trade up, or cash in on your equity, navigating the Q3 landscape with an informed agent will be key.
Condo Pricing Trends: Holding Steady with Strategic Entry Points
Brooklyn condos experienced mixed movement in the second quarter of 2025. While the number of closed sales declined 6.7% year-over-year, pricing remained relatively stable, a sign of sustained demand despite shifting volume.
-
Average Sales Price: $1,353,571 (+1.6% YoY)
-
Median Sales Price: $1,069,999 (-4.1% YoY)
-
Average Price per Sq Ft (PPSF): $1,215 (-1.1% YoY)
-
Average Square Footage: 1,121 (+5.0% YoY)
Co-op Pricing Trends: Surprising Strength and Rapid Appreciation
Co-ops, historically the more affordable segment, delivered the quarter's most unexpected gains, driven largely by tight inventory and increased buyer interest in Northwest Brooklyn.
-
Average Sales Price: $736,735 (+6.3% YoY)
-
Median Sales Price: $520,000 (+6.1% YoY)
-
Average Discount: 1% (down from 3% last year)
House Pricing Trends: Luxury Segment Fuels Market Resilience
Brooklyn's single- and multi-family homes experienced broad-based price growth, particularly in the $2M–$3M and $3M+ luxury categories, where transactions increased by 36.2% and 34.3%, respectively.
-
Average Sales Price: $1,556,739 (+7.1% YoY)
-
Median Sales Price: $1,200,000 (+6.6% YoY)
-
Average Price per Sq Ft: $668 (+1.7% YoY)
-
Average Square Footage: 2,538 (+2.8% YoY)
-
Average Discount: 7%
Key Takeaways
-
Condos offer stable pricing with increased availability, making them particularly attractive for first-time buyers and investors targeting the sub-$1 million range.
-
Co-ops are experiencing rapid appreciation due to low supply, especially in Northwest Brooklyn, shifting them into a more competitive price tier.
-
Houses continue to lead in price and space, with luxury homes driving much of the appreciation, but buyers can still negotiate in this segment.
