August 2016 Market Update
Home sales in July dropped again for the fifth consecutive month. Despite the drop in transactions, home price increases have 2016 on track to be the best year for home prices since the recession. Near rock-bottom mortgage rates continue to lure more and more buyers into the market despite steadily rising prices and low inventory levels, however, the consistent decrease in year over year sales could be a sign. We may be seeing more people escape Queens as a result of the high prices, or we may be seeing a sign of consumer uncertainty as a result of the political elections. Either way, it will be interesting to see what happens through the third and fourth quarters of this year.
Absorption Rate: 647 sales/per mo.
Current Available Inventory: 3,763 (Last month: 3,812)
Month’s Supply: 5.8 Months
Last Month: 5.7 Months
Last year: 6.9 Months
*Month’s supply over 6 months is said to favor buyers, month’s supply below 6 months is said to favor sellers, and month’s supply of 5-6 months is said to be a balanced market. Keep in mind that month’s supply can vary by neighborhood and property type.
Interest rates decreased slightly from the month prior and remain near all-time lows. Mortgage rates have declined recently due to the drop in U.S. Treasury rates created by the uncertainty surrounding the U.K.’s vote to leave the European Union.
Queens Home Sales
The Long island Board of REALTORS® reported Queens home sales at a seasonally adjusted annual rate of 607 homes during the month of July. This was a decrease of 12.8 percent from June, and a decrease of 18.3 percent from July of last year.
Specifically, Residential 1-3 family Queens home sales were down 16.8%, Queens Condo sales were down 15%, and Queens Coop sales were down 19.2% compared to this time last year. Over the last 12 months, Queens home sales are down .2%.
Queens Home Prices
The median home price reached a record $478,000 in July, which was up 2.7 percent from June and up 13.3 percent from July of last year.
Specifically, Residential 1-3 family Queens home prices were up 11.9%, Queens Condo prices were up 4.3%, and Queens Coop prices were up 16.7% compared to this time last year. Over the last 12 months, Queens home prices are up 7.3%.
Queens Housing Inventory
There was a 5.8-month supply of housing inventory in July, which increased slightly from June. The total number of homes for sale decreased by 16 percent compared to August of last year. Strong demand spurred by dropping interest rates will likely keep inventory levels suppressed, particularly in the Queens starter home market.
Specifically, there are currently 2,395 residential 1-3 family homes for sale, 385 Condos for sale, and 982 Coops for sale in Queens county.
Blog Courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.