Brooklyn has been hot for decades, but now it is pricier than ever—so much so that it is no longer considered New York City's second-choice borough.
"People used to move to Brooklyn because they were priced out of Manhattan," said Tamara Abir, a real estate agent with Halstead Brooklyn, LLC. "Now Brooklyn is the center of the universe. It's people's first choice. It's real life, and that's what people are drawn to."
Real life at a hefty price. The median price of a Brooklyn home sold in the third quarter of this year came in at $587,515, up just over 2 percent from the previous quarter and up 4 percent from a year ago, according to Jonathan Miller of Miller Samuels, and New York City appraisal firm. The borough's home values have increased for eight consecutive quarters, setting a new record for the fifth time in the past six quarters.
"People are going to the upper West Side [of Manhattan] because they're priced out of Brooklyn," Abir added.
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So is Brooklyn getting too bubbly? Not quite, because it is still very neighborhood-specific, and some areas have room to grow. While Park Slope and Cobble Hill command top dollar, areas like Prospect Heights are still coming into their own.
Overall, Brooklyn home sales were down slightly in the third quarter from a year ago, and inventory is up nearly 13 percent. That could help ease some pricing, depending, as always, on the neighborhood.