2021 ushered in one of the most robust real estate markets we’ve experienced in over 20 years of serving Brownstone Brooklyn.
Bidding wars are back on almost every well-priced listing on the market across all sectors. Inventory remains extremely scarce and buyers are eager to invest in property before a hike in mortgage rates, which is expected this year. The rental market is also highly competitive due to a lack of residential inventory and a surplus of demand. Since the rental market has been so tight and interest rates are at historic lows, buying has become a compelling option for those who would ordinarily have been renters.
Movement in the market has been driven largely by local activity rather than foreign investors. Not only are we seeing a strong demand for flexible layouts with work-from-home accommodations and outdoor space, but we’ve also seen a surge in pied-à-terre purchases for those who wish to retain a foothold in New York or are seeking a home-away-from-home for loved ones visiting from across the country. Townhouse and high-end markets have been particularly active.
As we settle into 2022, the factors most likely to affect the Brooklyn market are whether supply will rise to meet demand, how an anticipated increase in interest rates will impact buyers’ outlook and whether further regulations will be imposed on real estate transactions. Our market came to terms with the graduated mansion tax and loss of SALT (state and local tax) deduction, but potential new regulatory laws might be entertained.
Our deepest thanks to our wonderful clients, family and friends, for entrusting us as your advocates in this highly competitive market. In 2021, our team closed 74 transactions totaling over $88 million in sales.
Cheers to good health, abundance and community in 2022!