Brooklyn’s luxury contracts crawl into Labor Day weekend

Brooklyn's luxury market saw a sluggish end to summer, with only nine contracts signed for a total of $29 million in the week leading up to Labor Day. This was a significant decrease from the previous year, when 14 contracts were signed for a total of $42 million.

The top contract for the week went to penthouse 703W at Avdoo's Bergen development, located at 323 Bergen Street. This luxury condo was listed for $5.95 million.

The slow pace of luxury contracts in Brooklyn is in line with the overall trend in New York City's luxury market. According to Compass' weekly reports, there were only 19 contracts signed for properties priced at $4 million and above in the entire city for the week ending August 31st.

Brooklyn's luxury market has been hit hard by the pandemic, with buyers fleeing to the suburbs and prices dropping. This has been particularly evident in the borough's high-end market, with a significant decline in the number of contracts signed and a decrease in prices.

The slowdown in Brooklyn's luxury market can also be attributed to a lack of new developments. According to Compass, only 31 new development contracts were signed in the borough in the month of August, a decrease from 41 contracts in the same month last year.

While the end of summer is typically a slow period for the real estate market, the decrease in luxury contracts in Brooklyn is a cause for concern for developers and sellers. With uncertainty surrounding the pandemic and the economy, it remains to be seen when the luxury market in Brooklyn will pick up again.