Halstead Property

William S. Ross
Director of Development Marketing
wross@halstead.com
(212) 613-2001

Townhouse Sales Go Thru Roof

Prices surge from Coney to Bed-Stuy

 
BY ALISON FOX and JOTHAM SEDERSTROM  

Homebuyers are forking over a Kings County ransom.

Brooklyn's real estate market continued to surge as the average price of townhouses skyrocketed in all but one neighborhood, according to a report by Halstead Property.

Williamsburg and Fort Greene saw the biggest price hikes, but less trendy areas such as Brownsville and East New York also saw huge increases.

"The supply in Brooklyn has been very tight for at least three years, and I think this goes a long way in demonstrating the huge demand here," said William Ross, Halstead Property's executive director. "A lot of people found a neighborhood they love and just don't want to leave."

In development-crazy Williamsburg, the average townhouse price jumped from $693,813 last year to a whopping $1.1 million - a 59% increase.

Fort Greene townhouses, meanwhile, are selling for $1.51 million on average - a 42% jump from last year, when $1.06 million was the norm. Coney Island saw a 41% jump from last year, when rowhouses were selling for about $322,409.

"I predict the greatest increases over the next year will be Coney Island," said Ross. "There's a tremendous demand that people don't really understand yet over there."

In Brooklyn Heights, where prices shot up by 17%, some were shocked that brownstones in the historic neighborhood were fetching $3.2 million - on average.

"The city is becoming an impossible dream," said Luke Butler, 34, standing near an $8 million Remsen St. brownstone. "I grew up here, but it's hard to think of staying here your whole life because of these costs."

In Bedford-Stuyvesant, where brownstones now average $597,461, longtime residents said the renaissance has drawn new neighbors. So far this year, 531 townhouses have sold - a 19% increase from last year.

"Ten years ago it was a war zone, and you couldn't give half of these houses away," Steve Mackie, 50, who has owned a Willoughby Ave. home since 1984. "It's gotten better as far as people, but you're still in 'the 'hood.'"

Townhouse prices in East New York and Brownsville also went through the roof, with homes in the latter selling for $519,181 - a 36% increase from a year ago.

Only Seagate saw a 12% dip in townhouse prices since last year, when homes in the gated community went for $675,653.

The reason could be because only 10 homes hit the market this year, meaning that a few lower-priced homes would reduce the average considerably, Ross said.

Thursday, August 10, 2006