Brooklyn Real Estate Is Really, Really Not Good

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    NEWSLETTERS

    TK
    curbd
    Fear not, Williamsburg. At this rate, nothing's coming soon. Photo via Erinmelina/Curbed Photo Pool.

    It seems like just yesterday when analysts were all aflutter with sky-high expectations for Brooklyn real estate pricing and development.

    Well, those days are gone, as we all know -- and now the actual numerical value of our pain has been revealed.

    Median sales prices have dropped back down to 2005 levels, the Real Deal reports.  The 19 percent tumble in prices is just the tip of the iceberg.

    A city tally early last month found that Brooklyn had more stalled construction sites than any other borough with 214 -- a stunning 47 percent of all 448 projects citywide.

    Hipster haven Williamsburg and downtown Brooklyn have felt most of the pain, with huge developments like “Oro” at the foot of the Manhattan Bridge nearing completion with few takers. That particular development announced recently that it was slashing prices on its non-closed or vacant condos – which, at this point, is nearly one-third of the building's 303 units.

    Experts say we can expect prices to fall another 5 to 10 percent in the next year or so. One of thos experts, Bob "Big Knak Attack" Knakal, told Curbed new condos are still marching lemming-like onto the market with few bites.

    But before you start letting your anxiety about the future of the Brooklyn market keep you up at night (it's too late for us), Real Capital Analytics' Dan Fasulo offers this cheering thought: the condo glut is "going to provide much-needed affordable housing for the middle class, which doesn't really exist right now." We thought that was the whole point of Brooklyn in the first place!