June 2012 Queens Real Estate Market UpdateCourtesy of Abigail Herrera with Keller Williams Realty Landmark.
In a Nutshell:
Total Number of Homes Sold: 579 – Down 10.4% from 615 home sales in May 2011.
Median Sale Price: $350,000 – Up 3% from $340,000 in May 2011.
- Residential Homes Sold: 340 (Median Sale Price: $450,000)
- Condo Homes Sold: 61 (Median Sale Price: $340,000)
- Co-Op Homes Sold: 178 (Median Sale Price: $185,000)
Inventory (current active listings on the market): 8,537
- Residential Pending Sales: 499 (Median Sale Price: $455,000)
- Condo Pending Sales: 66 (Median Sale Price: $365,000)
- Co-Op Pending Sales: 275 (Median Sale Price: $175,000)
Rate of Sales (Average number of monthly home sales in the last 6 months): 584 average home sales/per month (3,504 total home sales in the last 6 months/6 months)
Absorption Rate (time it would take to sell the current inventory at the current rate of sales): 14.6 months (8,537 current active listings/584 average home sales per month)
Signs of recovery are moving forward, but at a slow pace in the Queens NY housing market. This is demonstrated by the decline in number of homes sold. Good news is that for the first time since August 2011, the median home price experienced a year-over-year increase. Continued strength in economic indicators, employment, and consumer confidence could help to bring full recovery to the Queens housing market. Relaxation in financial institution’s tight lending standards will also significantly help the recovery.
“With the tight lending environment it’s a good idea to consult with a Realtor about mortgages and program options in the area, and tips for boosting credit scores well in advance of making an offer on a home,” National Association of Realtors President Moe Veissi advises. “It helps to go into the process knowing what it takes to succeed.”
With rents on the rise in Queens, buying has become an increasingly attractive option due to home affordability, or the percentage income it takes to pay the mortgage, is the most favorable in market history. Current record interest rates, which factor into affordability, will not last forever, so buyers wanting to take advantage of this unique time in history will want to act before rates rise.
Thanks to a decline in distressed properties (which includes short sales and foreclosures that traditionally sell for 15%-20% less on average compared to non-distressed homes), the median home price rose 1% month-over-month and 2.9% year-over-year to $350,000. This is the first time in over 12 months that we have seen 3 consecutive month-to-month increases in home prices. For the year, we’re looking at a modest overall price gain of 1%-2%, with stronger improvements in 2013.
Housing inventory decreased to 14.6 months supply, which is 11.5% below last month’s levels. This is still well over 6 months, which is the threshold of a balanced market. That means that Queens is still in an extreme buyer’s market, giving Queens home buyer’s more leverage in the negotiation process. The decrease in inventory does indicate movement out of this deeply entrenched buyer’s market and is an important step toward a full-scale housing market recovery in Queens.
Mortgage rates continue to boost home affordability by remaining below 4%–some of the lowest rates on record since 1971. These rates may come as close to bottom as they can get, adding to the urgency to buy a home now while these record lows hold.
The Market Price is Right
Thinking about buying a home in Queens NY? Wondering what pushes others to jump off the fence and buy now? Here is some insight into the top 3 reasons that impact a buyer’s sense of urgency:
1……..Excellent Market Conditions. Interest rates are at record lows and home prices are bouncing along what experts believe to be the bottom – there has never been a more affordable time to buy a home. With some local markets slipping into a seller’s market and reports of more following, the chance to cash in on this historic time may be narrowing.
2……..Having the Freedom to Move. First time homebuyers often wait for their lease to expire, not realizing that buying sooner is an option. Repeat buyers wait to sell their house when leasing may be an option, giving them freedom to move up sooner.
3……..A Major Life Event. Often a major milestone or development spurs on the need to purchase at a specific time. Getting married and having children are two of the top events creating the need to buy now.