Queens NY Real Estate Market: Update
The annual rate of home sales rose for the fifth month in a row in August, the jump likely boosted by formerly reluctant buyers being pushed off the sidelines by the anticipation of rising mortgage rates. As speculation continues on the date and extent of the Federal Reserve’s reduction in its purchases of unconventional assets, mortgage rates have already begun to rise and are unlikely to return to the historic lows witnessed early in the year. With rates on the move, prospective buyers would do well to take advantage of low rates while home affordability remains at historically high levels. Prices rose again in August, maintaining the high year-over-year growth rates of the last twelve months. Sellers are still well-positioned in the Queens’ real estate market with inventory still relatively tight in many neighborhoods.
Month’s Supply: 8.1 Months
*Month’s supply above 6 months is said to favor buyers, and month’s supply below 6 months is said to favor sellers.
Interest rates have moved up this month: 30-year fixed-rate mortgages are currently 4.58% with 15-year rates at 3.60% and 5-year adjustable rates at 3.21%. These are the highest rates we have seen in the last two years.
Queens NY Real Estate Market: Home Sales
Total existing home sales in August were down 2% from July to a seasonally adjusted annual rate of 820 homes. Year-over-year home sales were up 15% from the August 2012 rate of 713 homes. The Queens’ housing market recovery is still well under way with 5 consecutive months of year-over-year growth in home sales heading into this fall. The most significant rise in home sales is in the Condo market. Residential home sales and Coop sales were up moderately in comparison.
Queens NY Real Estate Market: Home Prices
The median existing home price in the Queens in August was $383,750, up slightly from the previous month but up 9.6% from the same month last year. Of the last twelve months, this is the tenth month of year-over-year price increases. The most significant rise in home prices is still for Residential 1-3 family homes and Condos. Coops have only experienced a slight rise in prices.
Queens NY Real Estate Market: Inventory
A slight decrease in inventory levels was offset by the increase in the pace of home sales, causing the months of supply for existing homes to drop down from 9.1 months in July, to 8.1 months in August. Total Queens housing inventory dropped by 2% in August from 6,144 homes for sale in July to a level of 6,026 homes for sale in August.
Courtesy of the Queens Home Team @ Keller Williams Realty Landmark II. NYS Licensed Real Estate Salespersons.