While the real estate market slowed down throughout the first half of 2020, real estate in Marine Park is now showing signs of a resurgence. As we cap off a rough yet also surprisingly good year for real estate and look forward to 2021, let’s take a look at the market trends we have seen in southern Brooklyn’s Marine Park this year.
Sales going down
It is not surprising that real estate sales fell by almost 50 percent as compared to last year, according to the Real Estate Board of New York. From the beginning of the COVID-19 pandemic in March, residential real estate sales dropped 48 percent as compared to March-September 2019.
At first, we expected such a drop in demand to trigger a price collapse, but the exact opposite has happened.
Prices going up
The Real Deal defines it as the pandemic paradox: sales of Brooklyn homes plunged in the second quarter, but the average price rose. According to real estate analysts, a Brooklyn home’s average selling price increased 5.6 percent to $950,000. This is because 60 percent (compared to 51 percent in 2019) of the houses sold during this period were in the higher price range.
As unexpected as it may seem, our research and experience in the real estate market show that prices are actually rising. As of November 2020, the average list price for Marine Park houses was $769,000, up 5.5 percent from $735,000 in the previous year. The median sold price is at $835,000 as compared to $725,000 in November 2019.
Two-bedroom homes favored
Activity in townhouses now surpasses that in cooperatives and condominiums, according to the Wall Street Journal. Buyers who used to covet luxury apartments with great city views are now looking for townhouses “for their private entrances, gardens, and multifloor living.” This is the perfect illustration of the country-wide trend of families looking for more indoor and outdoor space and privacy as we hunker down in our homes to protect ourselves from the coronavirus.
The best thing about residential real estate in Marine Park is that the houses here are more affordable. Compared to other Brooklyn neighborhoods, Marine Park offers more space and yard for less. The average value of a home in Marine Park is at $547,875.
Marine Park is undoubtedly a buyer’s market where housing supply is higher than demand, but this may not last long as activity continues to pick up.
A typical two-bedroom house for sale in Marine Park remains on the market for 111 days. In November 2019, a similar dwelling would be listed for an average of 150 days. Also, the number of homes for sale has risen by 31.3 percent compared to last year.
Marine Park’s real estate prospects are far from bleak. Home values have increased 2.2 percent over the past year, and Zillow projects this to go up by 7.3 percent in 2021. Moreover, average home prices in Marine Park went up by 25.1 percent over the past five years.