May 2012 Market Update
The housing market and the overall economy are improving at modest rates nationally & locally, some areas have actually even gained momentum. The Conference Board’s CEO confidence index is up a notable 14 points—from 49 last quarter to a current reading of 63. A reading of 50 is the threshold above which indicates an optimistic outlook and below indicates pessimism. Rapidly growing optimism is a good sign for future hiring and growth.
The recovery is happening, though not at a breakout pace. Existing-home sales are moving up and down in a fairly narrow range that is below the level of activity during the first half of last year. However, with job growth, low interest rates, bargain home prices, and an improving economy, the pent-up demand is coming to market and we expect housing in Queens to be notably better this year.
As rents continue to rise in Queens, buying becomes a more and more attractive option as home affordability, or the percent of income it takes to pay the mortgage, continues to be among the most favorable in history. The current record interest rates, which factor into affordability, cannot last forever—buyers wanting to take advantage of this unique time in history will want to act before rates rise.
Home sales slipped 16.8% from the previous month to 526 units, and are -7.1% lower from a year ago. A strengthening economy is improving consumer confidence and drawing an increasing number of people into the market, however, in the local Queens market, there is not enough inventory of quality homes for buyers to purchase. As the Queens Real Estate market sees more new listings for their hungry buyers, local home sales could increase.
The median home price increased by 1.2% compared to the previous month and decreased by -1.7% compared to a year earlier to $344,000. In most areas over the long term, home prices have nowhere to go but up, this seems to be the case in Queens, NY so we are expecting for the median home prices to increase this year.
Inventory- Month’s Supply
Housing inventory increased from the previous month to 16.5 months supply and was 10% above year-ago levels. This is an indicator that the Queens real estate market is still a buyer’s market. It is important to note that inventory near a six-month supply is the threshold of a balanced market. Movement out of the deep buyer’s market that has persisted over the past three years is an important step that must precede a full-scale housing market recovery.
Mortgage rates continue to boost home affordability by remaining below 4%—some of the lowest rates on record since 1971. These rates may have begun to find a bottom as there is not much more room to go down, adding to the urgency to buy a home now while these record lows hold.
Topics For Queens NY Home Owners, Buyers & Sellers
Pricing a listing at market value is a critical component to getting it sold. Here are a few of the advantages of pricing it right: