A cooling trend in the Queens housing market continued in September with diminished inventory levels being the primary driving force behind the decline. Despite near rock-bottom mortgage rates and healthy job growth, Queens home sales eased after reaching record-setting levels in August. Affordability concerns have delayed some first-time buyers, which could contribute to pent-up demand in the future. All together, it looks like the tight inventory levels continues to put upward pressure on home prices, which is affecting affordability for home buyers, even with the low rates. Recently we read an article by Lawrence Yun, Chief economist with the National Association of Realtors who stated that while our last housing crisis was a result of too little demand, the next housing crisis will be a result of too little supply.
Absorption Rate: 691 sales/per mo.
Current Available Inventory: 3,670 (Last month: 3,814)
Month’s Supply: 5.3 Months
Last Month: 5.7 Months
Last year: 6.5 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.