Brooklyn Home Prices in Free Fall

According to a report published this week by appraisers HMS Associates, Brooklyn home prices are in free fall, with the average sale price dropping 18% in second quarter 2009 as against the same quarter last year.

Last quarter, the total number of sales — a barometer of prevailing price trends, dropped 52% compared with the same period last year.

Sales this quarter rose 8% over the first quarter of 2009, as prices continued to decline.

The biggest price drop was in DUMBO, Boerum Hill and Downtown Brooklyn, glutted with luxury highrises, where the average price crashed 22%.

Prices in Greenpoint fell 20%.

Carroll Gardens, Cobble Hill and Fort Greene held steady.

The article from the Brooklyn Paper.