This Month in Forest Hills Real Estate: June 2012

June 2012 Forest Hills Real Estate Market Update

 

Home Sales…

Total Number of Homes Sold: 48 – Up from 44 home sales in May 2011. 

  • Residential Homes Sold: 11
  • Condo Homes Sold: 3
  • Co-Op Homes Sold: 34 

Home Prices… 

Median Sale Price: $307,000 – Down 5.8% from $326,000 in May 2011

  • Residential Median Sale Price: $638,888
  • Condo Median Sale Price: $448,000
  • Co-Op Median Sale Price: $248,500

Pending Sales or Under Contracts… 

Total Number of Pending Home Sales: 9 – Down 79.5% from 44 home sales in May 2011.

Median Sale Price: $400,000 – Up 46.8% from $272,500 in May 2011.

  • Residential Pending Sales: 4 (Median Sale Price: $666,500)
  • Condo Pending Sales: -0- (Median Sale Price: $0)
  • Co-Op Pending Sales: 5 (Median Sale Price: $215,000)

Inventory… 

Current active listings on the market: 506

  • 98 New Co-Ops hit the market
  • 5 New Condos
  • 18 New Residential Homes

Rate of Sales…

Average number of monthly home sales in the last 6 months:

231 total home sales in the last 6 months Divided by 6 months = 38.5 average home sales/per month

Absorption Rate…

Time it would take to sell the current inventory at the current rate of sales:

506/38.5 = 13.14 months

*6-7 Months is a sign of a stable real estate market. Anything under 6 months is considered a “Seller’s Market”, and anything over 7 months is considered a “Buyer’s Market”. 

What does this tell us? That the Forest Hills Real Estate Market is still an Extreme Buyer’s Market. This gives Buyer’s more leverage at the negotiating table and results in most transactions being sold for less than asking price.  

Market Update

Signs of recovery continue in the Forest Hills NY housing market, demonstrated by improvements in the number of homes sold and local home prices. For the first time in over 12 months, the median home price has exceeded $300,000. Continued strength in economic indicators, employment, and consumer confidence could help to bring full recovery to the Forest Hills 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 Forest Hills, 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.

Interest Rates

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.

Home Sales

Home sales in June were about the same as a year ago at 48 units, which is up 57% from the previous month. A strengthening Forest Hills economy is improving consumer confidence and drawing an increasing number of people into the market. Some local Queens’ markets are experiencing a shift back into a seller’s market, leading to a shortage of homes available for sale, multiple offers, and higher prices. This is not the case for Forest Hills, but as more markets follow suit, Forest Hills home sales could continue to increase.
Home Price

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 56% month-over-month, but fell year-over-year to $306,000. This is the first time since May 2011 that median home prices reached the $300,000 mark. For the year, we’re looking at a modest overall price gain of 1%-2%, with stronger improvements in 2013.”

Inventory

Housing inventory decreased to 13.14 months supply, which is 15% above year-ago levels and 25% below last month’s levels. This is still well over a  six-month supply, which is the threshold of a balanced market. As a result, the Forest Hills market is still in an extreme “Buyer’s Market” which means that buyer’s have more leverage at the negotiating table. Good news is that the decrease in Month’s Supply indicates movement out of this deeply entrenched buyer’s market and is an important step toward a full-scale Forest Hills housing market recovery.

The Market Price is Right

Thinking about buying a home in Forest Hills 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.
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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.

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