Prospect Heights Recovering From Big Home Sale Price Drop

Real estate in New York has always been a fickle thing — but the clouds might be starting to recede, particularly for homeowners in Brooklyn, according to the Real Estate Board of New York.

In a report released this week, the board examined New York City neighborhood by neighborhood, and found a 21 percent increase in home sales volume in the second quarter of 2013, compared to the previous three months. 

Average home prices also increased by six percent — hitting just under $650,000.

Brooklyn led the way in both categories, seeing an eight percent overall increase in home sale price — hitting just under $650,000 — and a 29 percent increase in sales of one-to-three family homes. 

Steven Spinola, president of the Real Estate Board, said prices are likely to continue their climb, particularly in hot areas like Brooklyn.

“It remains to be seen what impact rising mortgage rates will have on sales activity going forward," Spinola said. "But the market overall is seeing steady gains and we anticipate the trend will continue.” 

In Prospect Heights, residents are seeing a neighborhood with home values on the comeback trail — but they're still not there yet.

The average home sale price in the neighborhood — while higher than the borough-wide number — fell precipitously between 2012 and 2013. Comparing the two years finds that average home sale prices this year are nearly 25 percent lower than they were in the area last year.

A home sold in Prospect Heights in the second quarter of 2012 had an average value of $970,000. This year? That number has dropped to $735,000. 

It's not all bad news, however, That most recent price represents an increase over the first quarter of 2013, in which average sale prices were at $701,000.