Last Updated on October 15, 2020
Queens Real Estate Market Report 2020, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Have a question? Contact Us anytime.
Here we are, just wrapped up the third quarter of the year and we are heading into a very uncertain fourth quarter. Now that we are 6 months into the global pandemic, we are starting to get a good feel for the short term impacts COVID-19 is having on our local real estate market. The good news is that the market is still moving, interest rates are still low, and there is still demand for homes. The not so good news, is the fact that we are currently experiencing a “flight to the suburbs”, and as a result, some of our demand is exiting to areas like New Jersey, Long Island, Westchester county, and Connecticut. In addition to this, inventory is currently at a 7 year high. This combination of growing supply along with exiting demand may very lead to a sustained buyer’s market unless we see demand come back strong.
As we head into the fourth quarter we find ourselves with month’s supply of 14.2 months. This is a staggering number that we have not seen since the global financial crisis. What that means is that we are currently in a pronounced buyer’s market. However, this is is not completely reflective of the current market because the second quarter of the year was brought to a complete halt by the shutdown. When that happened there was talk of a surge in sales following the reopen due to pent up demand from home buyers and that would likely spill over into the third quarter of the year. Based on the recent pending sales in July, August, and September, that is exactly what we are seeing. For example, pending sales for the third quarter were up 292% from the second quarter of the year, and up 27% compared to the third quarter of last year. This is a good sign that demand is coming back, however, demand for certain property types seems to have suffered and may not be coming back any time soon.
Based on what we’ve been seeing with our own listings, it appears that demand for multi family homes is still very high (as long as it’s priced right), demand for single family homes is slightly down but they are still selling, and demand for coops & condos is seems to be down the most. Fortunately we have been able to sell most of our listings, but the most challenging sales we’ve had since March have definitely been our coop and condo listings. In our opinion, this is because the desire to live in a building is not very popular right now, and because a lot of those would-be coop/condo buyers are probably the people who are now looking outside of NYC since many employers are adopting the new work from home economy.
The fourth quarter will be very telling for us and it will be a good indicator as to what we can expect to see in 2021. There are several factors that we have yet to see play out fully (i.e. Commercial market impact, rental market impact, shutdowns, presidential election, flight to the suburbs, etc) so we will monitor the market and keep you posted.
If you have any questions or need some real estate advice, feel free to Contact Us anytime.
QHT Listings for Sale
What is Month’s Supply? Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. For example, if there are 50 homes on the market and 10 homes selling each month, there is a 5 month supply of homes for sale.
Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.
Month’s Supply in Queens NY
- Homes on the Market: 6,321
- Homes selling each month: 445
- Month’s Supply: 14.2
Queens Home Sales
The Long Island Board of Realtors reported a total of 1,361 closed home sales during the third quarter of 2020. This was DOWN 4% from the previous quarter and DOWN 39.6% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 39.4%, sales for Condos were DOWN 49.8%, and sales for Coops were DOWN 37% compared to the same quarter last year.
As for pending home sales, the Long Island Board of Realtors reported a total of 3,025 pending sales during the third quarter of 2020. This is UP 292% from the previous quarter and UP 27% compared to the same quarter of last year.
Queens Home Prices
As of September 30, 2020, the median home price in Queens was $590,000, this is UP 5.4% % from the previous quarter, and UP .1% compared to the same quarter of last year. Specifically, the median home price for Residential homes was UP .7%, median home price for condos was DOWN 6.4%, and the median price for coops was DOWN 2.4% compared to the same quarter last year.
On Thursday, October 15, 2020, according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.020% with an APR of 3.330%. The average 15-year fixed mortgage rate is 2.550% with an APR of 2.840%. The 5/1 adjustable-rate mortgage (ARM) rate is 3.100% with an APR of 4.070%.
There is currently 14.2 month’s of inventory in Queens, this is UP from the 11.9 month’s supply we had last quarter. As for active listings, currently there are a total of 6,321 homes for sale in Queens. That’s UP from the 5,523 homes we had on the market last quarter and UP from the 5,134 homes we had on the market in the same quarter of last year.
Queens real estate market report 2020, provided by the Queens Home Team at Keller Williams Realty Landmark II. Have a Question? Contact Us anytime.
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 🙂
*The opinions expressed in This Queens Real Estate Market Report are intended to supplement opinions on real estate expressed by local and national media, local Queens real estate agents and other expert sources. You should not treat any opinion expressed on this report as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. The Queens Home Team at Keller Williams Realty Landmark II does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. The Queens Home Team will not be liable for any loss or damage caused by your reliance on information contained in this report.
As of September 30, 2020, there is a 14.2 month supply of homes for sale in Queens.
As of September 30, 2020, the Queens real estate market would be considered a “Buyer’s Market”.
The answer to this question depends on your personal situation. It really comes down to your objective, your priorities, your personal circumstance, and your goals after the sale. What we can tell you is that demand for homes in Queens has gone down since the global pandemic hit. We will have to wait and see when demand comes back. The good news is that interest rates are still extremely low and that has helped to maintain a healthy real estate market in Queens. Most of our listings are still selling, albeit not as quickly as they did last year.
Now is definitely a good time to buy a home in Queens because interest rates are low, and some demand has left to the suburbs. What this means is less competition than you would have had last year or in previous years.
As of September 30, 2020, the median price for a residential home in Queens NY is $755K. Median price for a condo in Queens is $515K. And the median price for a coop in Queens is $299K.
As of September 30, 2020, average days on market for residential homes in Queens was 97 days. Average days on market for coops in Queens is 93 days. And average days on market for condos in Queens is 86 days.
In general, from the date of contract signing, it takes about 60-90 days to close on a residential home or condo in which the buyer is obtaining a mortgage. If it is a cash deal, then the typical timeline would be one month less (i.e. 30-60 days). It is very rare for homes and condos to close in less than 30 days unless you are selling to an investor, and when that is the case, you are usually selling for WAY below market value. As for coops, the typical timeline to close, from contract signing, is 90-120 days. If it is a cash deal, then the timeline would be one month less (i.e. 60-90 days).
Your overall selling timeline will depend on the agent you choose and how quickly they can get you an acceptable offer. Keep in mind that there are several issues that can cause delays to your transaction so it’s important that you hire an agent who has sold a lot of properties and knows how to anticipate and resolve issues quickly.
Click Here to learn more about the timeline to sell in Queens.
One of the main reasons why we Queens homeowners contact us is to find out how much their property is worth. There are several reasons why a homeowner would want to know their home’s value but no matter the reason, we are happy to oblige.
Some of the most common reasons for needing a home valuation include things like future plans to sell, probate & administration proceedings, divorces, bankruptcies, and of course plain curiosity. Many times we speak with homeowners and they have no plans of selling their home, but they would like to get an idea of what the property is worth.
Now, the way we typically answer the question, “How much is my property worth?” is by offering a Free Home Valuation. What our team does is offer two types of home valuations, one is a price range valuation (if we cannot see the property in person), and the other one is a more specific home valuation which requires us to see the property in person to assess the size, layout, condition, etc.
Price Range Valuation
A price range valuation is just what it sounds like, a price range for the value of your home based on the recent comps as well as our experience in your neighborhood. Price range valuations are good for out-of-state owners, landlords who don’t want to disturb tenants, or someone who just wants to get an idea (i.e. ballpark figure) of what their house is worth at any given time.
Most agents will not offer a price range valuation because in our industry agents are trained to schedule an appointment before sharing any price or value information. On our team however, we believe in full transparency and quality information so that people can make good decisions. As a result, we have no problem offering free price range valuations and we actually send a lot of them to Queens homeowners.
Something important to note regarding price range valuations is that the range (or spread) will largely depend on the size and type of property you own. For example, the price range offered for a 1 bedroom coop may be $50K (+/-) while the price range for a 3 family may be $200K (+/-).
The only downside to a price range valuation is that you won’t have a very specific value, but if all you want is an idea of, then this can be helpful.
Now, if you want to get a really good idea or more specific valuation for your property, then that would require a property tour. What we call this is a home valuation or broker price opinion. With this type of valuation, we would come in to see the property in person so that we can assess the size, layout, condition, internal obsolescence, external obsolescence, etc. The walk through usually takes 10-15 minutes, and after seeing it, we usually sit down with the homeowner to go over everything together. This allows us to not only provide the seller with the comps, but it also allows us to explain how we come to the valuation we are providing. If a homeowner cannot meet with is for some reason, then we will typically send the analysis and valuation by email.
Broker Price Opinion Vs Independent Appraisal
In our opinion, the best way to understand the value of your property is to sit down with a local agent who can go through the comps with you and explain how they draw their estimated valuation of your property. This is different from an appraisal because when you order an independent appraisal, the appraiser will come by to see your property, then they will create a written report for you and send it to you a few days later for review. Appraisers will typically include a handful of comps in the report, and they don’t typically sit with the homeowners to explain how they came up with the appraised price that they provided. It’s very common for homeowners to disagree with an appraisal because they don’t understand the methodology, or because the appraiser may not know the area well.
The way our team likes to provide home valuations is by looking at the property in person, then sitting down with the homeowner(s) to go through all of the data (closed, pending, available, month’s supply, etc) together and ultimately offer our professional opinion of the value. The value we give is never a specific number because true “market value” is what a buyer is willing to pay for it, and without being on the market, it is impossible for us to know that. Instead, what we provide is a realistic idea of where we believe offers would come in if we were to list the property at that time. We are able to do this based on our recent sales and experience selling properties in that area.
In our experience, experienced agent valuations tend to be more accurate than appraisals because in addition to the sales data which we both have access to, a local agent can also apply their recent sales experience, knowledge of the area, and local market trends to get a better idea of the property’s current value.
If you would like to get an even better idea of your property’s current value, have 3-4 agents give you their valuation. After hearing and seeing 3-4 valuations, the value should be pretty clear as long as you are realistic and not just looking to hear the highest price 🙂
So, to answer the age old question, “How much is my house worth?”, the answer is that it depends, but if you live in Queens we would be happy to offer you a free price range valuation or a free comprehensive home valuation.
If you have any questions regarding your home’s value, or if you would like to know how much your property is worth here in Queens NY, feel free to reach out anytime.