This Month in Forest Hills Real Estate: August 2012

Forest Hills NY Real Estate Market Update

August 2012 Forest Hills NY Real Estate Market Update 

Forest Hills NY Market Update

The Forest Hills housing market continues to recover, indicated by a balanced supply of inventory and decreasing Month’s supply. Abigail Herrera states, “The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened, however, in Forest Hills there is more than enough inventory, giving the potential buyers leverage at the negotiating table.”

Rising demand has led to tight supplies of affordable homes for first-time home buyers, who now only represent 32% of purchasers in Queens. Abigail claims “a healthy market share of first-time buyers would be about 40%, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry-level activity.” Due to the fairly large amount of inventory in lower price ranges in Forest Hills, it is more likely that the unnecessarily tight credit standards is what is holding back entry-level activity.

Regardless, with the Forest Hills market heating up and mortgage rates continuing to hit record-lows, now is one of the most favorable times in history to buy a home in Forest Hills, Queens.

Forest Hills NY Interest Rates

Mortgage rates at or around 3.53% continue to drop and boost home affordability. These are some of the lowest rates on record since 1971, increasing the urgency to buy now.

Forest Hills NY Home Sales

Home sales decreased 2.1% from last month to 46 units, while year-over-year sales increased 9.5%. This is one of only two months that have seen year-over-year increases this year, which is a sign that although home sales in 2012 have not measured up to 2011, they are gaining momentum that will hopefully carry on in to 2012.

Total Number of Homes Sold: 46 – Down 2.1% from last month & Up 9.5% from last year.

  • Residential Homes Sold: 8
  • Condo Homes Sold: 3
  • Co-Op Homes Sold: 35
Forest Hills NY Home Prices

Large inventory levels and a decline in home sales could be the reason that Forest Hills home prices have not steadily risen. The median home price rose 6% from last month, but decreased 1.5% compared to a year earlier to $265,000. This is the third month in 2012 that the Forest Hills housing market has seen year-over-year price gains, a sign that the recovery is still a slow process in Forest Hills.

Median Sale Price: $265,000 – Up 6% from last month; Down 1.5% from last year. 

  • Residential Median Sale Price: $635,000
  • Condo Median Sale Price: $460,000
  • Co-Op Median Sale Price: $240,000

Forest Hills NY Pending Home Sales

Forest Hills’ pending home sales increased 27% from last month and 90.6% year-over-year to 61. This is the third consecutive month of year-over-year increases in Pending Home Sales, a good sign that Home sales should pick up in the 3rd and 4th quarter of 2012.

Total Number of Pending Home Sales: 61 – Up 27% from last month; Up 90% from last year. 

  • Residential Pending Sales: 12
  • Condo Pending Sales: 4
  • Co-Op Pending Sales: 45

Forest Hills NY Listing Inventory 

Current active listings on the market: 505

  • 98 New Co-Ops hit the market
  • 4 New Condos
  • 16 New Residential Homes

Absorbtion Rate/Month’s Supply

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

  • This Month – 11.7 months
  • Last Month – 11.3 months
  • Last Year – 13.5 months

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

This Month’s Video

To watch this month’s video, youtube.com/abigailsells

Tips for Forest Hills NY Home Sellers

With many Queens markets heating up, home prices are rising and inventory is shrinking. However, the opposite is true in Forest Hills because home prices are fairly stable and inventory is actual expanding. This market activity puts Forest Hills Home sellers at an unfortunate disadvantage, but, to ensure that your property sells quickly and for the highest price, here are some tips to turn that “For Sale” sign into a “Sold” sign:

  1. List at market price. Even though the market is in your favor as a seller, incorrectly priced homes will not attract buyers. If you list your home at market price, your home will be on the market for fewer days, you are twice as likely to have multiple offers, and your chances of fewer price reductions and your sales price being close to your list price are much greater.
  2. Condition is key. Keeping your home in excellent condition includes enhancing your curb appeal by landscaping your front yard, as well as making necessary updates such as painting and roof repair. 93% of homes that were in better condition received offers close to their list price.
  3. Stage your home. Many buyers prefer to see a depersonalized home, devoid of the seller’s personal items, so that they can picture themselves in it. Staging can be as simple as rearranging furniture or uncluttering a room. The cost of it can be minimal compared to the benefits of more showings and, ultimately, a higher asking price.
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