January 14, 2016 3:41 pm

The scarcity of inventory continues to drive up prices in Brooklyn — and don’t expect it to stop anytime soon. The borough saw the second highest average sales prices on record in the fourth quarter of 2015, at $808,121, down from $856,839 in the previous quarter, according to Douglas Elliman’s latest quarterly sales report. Meanwhile, inventory dropped 6.5 percent year-over-year. “Inventory crunch is still such a predominant factor,” said Sarah Burke, senior manager of Brooklyn sales at Elliman. “By 2017, there’s going to be a little more inventory to accommodate the demand.” The median sales price rose 11.1 percent year-over-year to $650,000. “What’s fueling this is a robust economy, job growth and Brooklyn’s own success in rebranding itself over the last five years as a destination, not just a less expensive alternative to Manhattan,” said Jonathan Miller, president of Miller Samuel and author of the Elliman report. “What we’ve been seeing in 2015 is a tremendous amount of sale activity.” Frank Percesepe, regional senior vice president in Brooklyn for the Corcoran Group, which also released its fourth quarter report Thursday, said the continued high demand for residential properties in the borough is driving residents to south Brooklyn to find deals. “A long time ago, Brooklyn became a destination,” he said. “And now that’s a destination, there’s a shortage, and people are going deeper into the borough.” Queens is experiencing a similar inventory crunch, though not as pronounced. Miller said that while Brooklyn’s housing stock is “critically low,” Queens is merely “low.” The average number of days that a property was on the market fell 41.6 percent year-over-year to 57. The median sales price hit $470,000, a 9.2 percent year-over-year increase. Listing inventory fell 6.3 percent from the same time last year.

See more at: The Real Deal

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