Brooklyn home prices are getting so high, buyers are heading back to Manhattan.
The median price of a Brooklyn home in the first quarter rose 14.4% to $515,000, the highest price reached since the second quarter of 2008, according to a report from Douglas Elliman.
“We have incredible demand and very limited supply,” said Michael Guerra, Douglas Elliman’s managing director, Brooklyn.
“I was just talking to a buyer who is reshifting her search back to the upper West Side. She said, ‘I am not seeing a discount,’ ” in Brooklyn.
Brooklyn’s prices are being pushed up by a sharp decline in inventory, which fell 45% in the quarter to a five-year low.
With demand strong, prices are up in almost every part of the borough.
“We are seeing it at every price point,” Guerra said. “We are breaking records in Bed-Stuy. We are breaking records in Flatbush.”
North Brooklyn, which includes the swanky condos of Williamsburg, saw prices jump by 30% in the quarter to $691,000. But sales fell sharply — by 45%.
Median prices also surged in affluent Northwest Brooklyn, rising 24% to $695,000.
But east Brooklyn, which has been an epicenter of the city’s foreclosure crisis, also rallied, with prices increasing by 5.2% to $390,000.
“Brooklyn is essentially standing on its own,” said Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles reports for Douglas Elliman. “It’s become more of a destination.”
Brooklyn rents are also on a tear. The average rent in the borough in March reached $2,971, an 11.5% increase when compared with March 2012, Douglas Elliman said.
A separate report from Citi Habitats showed rents in Manhattan in the first quarter were up compared with the same period a year ago, but fell when compared with the previous quarter.
Manhattan’s vacancy rate widened to 1.41%, compared to 1.22% during the first quarter of 2012, and 1.38% in the previous quarter.
At the same time, landlord concessions, while still few and far between, increased.
“All of these facts were great news for tenants,” Citi Habitats president Gary Malin told the Daily News.