Queens Real Estate Market 2018 Forecast, provided by the Queens Home Team at Keller Williams Realty Landmark II. Need help? Feel free to Contact Us anytime 🙂
Queens Real Estate Market Report, January 2018
Goodbye 2017, Hello 2018. Last year was another year of booming prices, low inventory, and rising popularity here in Queens. In 2017 we continued to see the spillover from Manhattan & Brooklyn as buyers continue to get priced out of those more expensive areas. This, coupled with the increased press coverage that the borough received in 2017 has led to a steady rise in home prices that have only grown over the last few years. Although we did see more price changes & slightly less offers than we did in 2016, we still ended the year in strong seller’s market. Between the last 12 months of Jan and Dec 2017, prices are up, sales are pretty even, inventory is down, and interest rates are still low. In terms of demand, there is still a high demand in the entry level home market, while demand in the higher end and luxury markets seem to have softened a bit. Still, lending standards have loosened up in the last year so this will likely spur more demand throughout the borough.
The entry level market in Queens includes coops, condos, and single family homes under $700K or so. Once you get into the market where buyers are paying $750K or higher for a single dwelling, the number of potential buyers decreases. Don’t get me wrong, those are buyers are still out there, especially in the more desirable areas of Queens, however, in 2017 we saw the most activity in those houses & apts that were in the more “affordable” price ranges (i.e. up to $500K). Multi family homes also continue to be in high demand, with two family homes leading the way as the most popular choice among home buyers and investors. Two family homes under $1M had the most activity last year, while two families priced over $1M saw slightly less activity and offers. Three family homes are still somewhat rare so demand is high for them as well, however, the price tag is much higher so the amount of buyers capable of purchasing them is smaller than that of two families. All in all, demand is still strong in the borough, and we have not had any trouble selling our listings yet. Based on everything we’ve seen, all of the articles we’ve read, and considering the recent talks we’ve had with local Queens real estate professionals, it seems that 2018 will be a similar year to that of 2016 and 2017. Many agents and lenders think that the market will shift at some point because they believe that these double digit price gains are not sustainable. While this may be true, the truth is that Queens is more popular than it ever has been. As a result, we predict that home prices will continue to increase in 2018, at a rate of 8-10%.
Barring any major economic changes, it looks like it will be another good year for homeowners and another tough year for homebuyers. Inventory is extremely low to start the year, and this continual trend of low inventory is what has led to consistent year over year price increases in the double digits. Low inventory will likely be the driving force of the Queens real estate market in 2018, just as it was in 2016 & 2017. It will be interesting to see if more inventory pours on to the market as a result of the new tax reform. We don’t anticipate that this will be the case, but you never know how tax reform changes can affect the perception of local homeowners. We’ll keep you posted throughout the year. In a Nutshell
- Available Homes for Sale: 3,404 (Last Month: 3,484)
- Rate of Sales (Avg sales per mo): 757 (Last Month: 754)
- Month’s Supply: 4.5 (Last Month: 4.6)
- Avg Days on Market (Residential): 79 (Last Month: 70)
- Avg Days on Market (Coop): 85 (Last Month: 69)
- Avg Days on Market (Condo): 93 (Last Month: 72)
- Contracts Written: 591 (Last Month: 785)
*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.
New 1 Family Homes for Sale in Queens
To see where rates are headed, check out the Rate Trend Index at http://www.bankrate.com/mortgages/rate-trends/. Check today’s rates at: https://goo.gl/UJYNkM
New 2 Family Homes for Sale in Queens
Queens Home Sales
The Long Island Board of Realtors reported Queens home sales at a rate of approximately 701 homes during the month of November. This was a decrease of 2.4 percent from November and a decrease of 9.8 percent from December of last year. When we look at the entire year of 2017, home sales were pretty much the same as recorded home sales in 2016. We ended the year with a very small increase of .4% over 2016 home sales. We can attest to this because 2017 overall was very similar to the market we experienced in 2016.
Specifically, our Queens real estate market report for the entire year of 2017 shows that Residential home sales were UP 2.4%, Queens Condo sales were UP 6.4%, and Queens Coop sales were DOWN 4.6% compared to 2016 sales.
New 3 Family Homes for Sale in Queens
Queens Home Prices
The median home price dropped to $550,000 in December, which is a decrease of 2.6 percent from November, and up 16.2 percent compared to December of last year. The median home price has increased by approximately $76,500 in the past year alone.
Specifically, our Queens real estate market report shows that Queens residential home prices are UP 15.7%, Queens Condo prices are DOWN .5%, and Queens Coop prices are UP 13.9% compared to December of last year. When we look at the entire year of 2017, our report shows that overall Home prices in Queens are UP 13% from 2016. The appreciation rate in Queens has continued to be significantly over the national average and above what most economists would consider healthy home price appreciation (4-5%). For the past few years we have been experiencing double digit home price appreciation and it does not seem to be letting up anytime soon.
Average Home Price in Queens NY
In December, the average home prices for Queens real Estate were as follows:
- Average sale price for a 1 family home in Queens was: $724K
- Average sale price for a 2 family home in Queens was: $865K
- Average sale price for a 3 family home in Queens was: $1.15M
- Average sale price for a 1 bedroom condo in Queens was: $458K
- Average sale price for a 2 bedroom condo in Queens was: $590K
- Average sale price for a 1 bedroom coop in Queens was: $254K
- Average sale price for a 2 bedroom coop in Queens was: $341
New Condos for Sale in Queens
Queens Housing Inventory
There is currently a 4.5-month supply of housing inventory in Queens, this is down from the 4.6-month supply we had last month, but up from the 4.3 month supply we had in January 2017. The total number of homes for sale in Queens (3,404) decreased by 2.3 percent compared to last month, however, inventory is up 7% over January of last year when there were 3,182 homes for sale in Queen
Specifically, our Queens real estate market report shows that there are 2,251 residential homes for sale, 362 Condos for sale, and 792 Coops for sale across Queens county. Total homes for sale = 3,404
New Coops for Sale in Queens
Queens real estate market December 2017, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. The Queens Home Team is a group of friendly, service driven real estate agents in Queens NY. Our team members are not only experts at what they do, but more importantly, they are driven by their desire to help people. The team approach is what truly separates us from the average Queens broker, because while most agents are one person doing several things, we have several agents doing one thing, and being great at it! This ensures expertise throughout all stages of the transaction and allows us to provide the superior level of service our clients deserve. We understand that real estate is a service industry, therefore we treat it as such. Rest assured that when you work with the Queens Home Team, you’ll be in good hands, with people who care 🙂