Sales of existing Forest Hills homes have continued to improve in 2012. August represented the first time this year that we have seen back to back months of year-over-year increases.
I believe that affordability conditions are very good for the Forest Hills housing market. Mortgage interest rates have been at record lows this year, while rents have been rising at faster rates. Combined, these factors are helping to unleash a pent-up demand. However, the market is constrained by unnecessarily tight lending standards and shrinking inventory supplies in some neighborhoods of Queens, so housing could easily be much stronger without these abnormal frictions. In Forest Hills, there is still a large amount of Co-Op inventory, while Condo and Residential inventory is experiencing some inventory shortages.
With mortgage rates beginning to rise, coupled with strong affordability, now is still one of the best times in history to buy a Home in Forest Hills, Queens.
Forest Hills NY Interest Rates
Mortgage rates at or around 3.66% are up slightly from 3.53%, possibly indicating rates have finally hit bottom. These are some of the lowest rates on record since 1971, increasing the urgency to buy now.
Forest Hills NY Home Sales
While home sales dropped 6% from last month to 46 units, year-over-year sales increased 15%. According to the National Association of Realtors, existing home sales rose in July with the national median sales price reaching five consecutive months of year-over-year growth. In Forest Hills, we have seen year-over-year growth in 4 of the last eight months, a sign that prices are not growing at the rate of the country, but we are not far behind. Residential home sales in Forest Hills rose 80% year-over-year to 9 units. Condo home sales, on the other hand, fell 33% to 1 unit. Finally, Co-Op home sales increased 3% to 36 units, the 3rd consecutive year of year-over-year increases.
Total Number of Homes Sold: 46 – Down 6% from last month; Up 15% from last year.
- Residential Homes Sold: 9
- Condo Homes Sold: 1
- Co-Op Homes Sold: 36
Rising inventory supply has placed downward pressure on Forest Hills NY home prices. The median home price fell .6% from last month, but increased 19.8% compared to a year earlier to $257,500. This marks the fourth month of year-over-year price increases in 2012, with the other four months showing price drops.
Median Sale Price: $257,500 – Down .6% from last month; Up 19.8% from last year.
- Residential Median Sale Price: $640,000
- Condo Median Sale Price: $340,000
- Co-Op Median Sale Price: $233,000
Forest Hills NY Pending Home Sales
Pending home sales rose 20% from last month to 71 units, year-over-year pending sales increased 29.1%. Residential pending sales in Forest Hills increased 14.3% year-over-year to 8 units. Condo pending sales increased over 100% from last year, to 5 units. And Co-Op pending sales increased 23.4% to 58 units. August marks the fourth consecutive month of year-over-year increases in pending home sales, a sign that Buyers are out there and they are buying homes.
Total Number of Pending Home Sales: 71 – Up 20% from last month; Up 29.1% from last year.
- Residential Pending Sales: 8
- Condo Pending Sales: 5
- Co-Op Pending Sales: 58
Forest Hills NY Listing Inventory
Current active listings on the market in Forest Hills NY: 469
- 71 New Co-Ops hit the market
- 5 New Condos
- 10 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 – 10.9 months
- Last Month – 11.7 months
- Last Year – 13.9 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”.*
Tips for Forest Hills NY Home Sellers
When looking to sell, your home’s appearance can be the difference between it sitting on the market or selling quickly. Updating your property can be one of the easiest and most cost-effective ways of adding value to your Forest Hills’ home. Here are some tips to get your house looking great:
1. Perform the most common updates. On average, someone who intends to sell their home spends about one-third of what they would spend during their entire time in that home. The most common updates are painting, flooring, and lighting–all of which have cost-effective options.
2. Make improvements. Improving your property can be critical to selling a home in Forest Hills NY. According to market research, only 23% of the market sold were homes considered to be outdated while 76% were fairly to very updated. Making improvements is one of the more beneficial things a seller can do to help increase the appeal of their home.
3. Focus on the little things. Updating your house for sale doesn’t have to mean remodeling the whole place. Focusing on individual items that really need updating will make a big impact. Putting a fresh coat of paint or replacing old hardware on your cabinets could be the thing that helps get your house sold.