Brooklyn Housing Boom: Dude, It's So Over

The number of Brooklyn home sales dropped 42.7 percent annually in the fourth quarter of 2008, according to a new report from Prudential Douglas Elliman and appraisal firm Miller Samuel (and authored by ace Jonathan Miller). At the same time, the median home sales price dropped 7.5 percent to $490,000.

As the graphic indicates, Brooklyn’s more expensive areas – North Brooklyn, and Brownstone Brooklyn – fared better than East and South Brooklyn (“South” being a geographic term here), which have substantially lower average and median sales prices.

Fair warning for sellers and glad tidings for buyers: The drastic reduction in sales volume most likely portends further price reductions going into the spring and summer.