Brooklyn Home Prices Dip! Buyer’s Market? Um…

Thanks to the collapse on Wall Street, the Brooklyn sales market took a dip, but not a dive, according to a third quarter market report from real estate consulting firm HMS Associates. The third quarter average sales price of $695,285 marked a 2 percent reduction from the third quarter of 2007, creating a modestly improved market for buyers that could only turn more advantageous as the financial crisis reverberates.

Quarterly sales prices jumped annually in chi-chi neighborhoods like Brooklyn Heights and Prospect Heights, but fell in far away Sheepshead Bay and the emerging neighborhood of Greenpoint, suggesting a flight toward quality properties in an uncertain market. In the third quarter, sales increased by a meager 1 percent on the year, climbing from 988 last year to 999 this quarter. Home sales were up in Carroll Gardens and Williamsburg, but down Greenpoint and Fort Greene.

While the average co-op price fell 12 percent from $557,000 last year to $492,000 this most recent quarter, condo prices increased 4 percent annually, jumping to $687,000.

Sam Heskel, executive vice president of HMS, heralded the modest downturn as a return to a buyer’s market, but buyers are better off waiting, as the dramatic effects of the Wall Street downturn and the financial crisis can’t be fully represented by a report that goes through Sept. 30. Prices are likely to continue to decline going into 2009, as the fall and winter are slower seasons for home sales to begin with.

Brooklyn Home Prices Dip! Buyer’s Market? Um…