Queens Real Estate Market Report 2020, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Looking for a good Queens Realtor? Feel free to Contact Us anytime 🙂
First quarter is officially over, and we are now in the 2nd quarter of 2020. If you live on earth, then you already know what the talk of the town is, Coronavirus and COVID-19. Usually our quarterly market report would include a recap of the quarter as well as some projections of the upcoming quarter but given the current circumstances, that is not possible. Reason why is because at the time of writing this, most of America is not in business, unemployment is over 10%, and we are officially in a recession. The question is, how long will this recession last, and when will we get back to a pre COVID-19 economy? Unfortunately no commentator, economist, or news anchor can answer that for us, but what we know for sure is that we are entering a brand new real estate market as of right now. Any data we have on the market is pretty much irrelevant at this point because the economy just got turned upside down, so the short term and long term impacts on the market are yet to be seen. What we plan to do in this report is go over the previous quarter numbers so that you can have an idea of where we were, going into this pandemic, and then we’ll give you our opinion as to what we believe will be the near term impact on our local real estate market.
Home sales in Queens were down 9.3% from the previous quarter, and they were down 4.2% when compared to the same quarter of the previous year. All in all, home sales have been down, and given that interest rates last quarter were at all time lows, the result is likely a result of slightly lower demand in the borough. What we saw in the first quarter of 2020 is that many of the areas where homes are still “affordable” were still in high demand, however, some of the more expensive areas seem to be seeing a dip in demand. We have also noticed that a lot of buyers are starting to venture out of the borough in order to find more value. We’ve been hearing about a lot of people moving to Long island, New Jersey, and Upstate NY.
As for home prices, the first quarter of 2020 saw home prices remain the same, although they were up from the first quarter of 2019. All in all home prices have still been increasing, but at a slow pace. Given the current pandemic and economic conditions, we are expecting to see a decrease in demand which will likely impact home values in some areas of Queens.
When it comes to inventory, there are currently about 4,500 homes for sale in Queens. This is definitely considered “low inventory” for Queens and given where interest rates were pre COVID-19, this is what led us to believe that 2020 would be a solid year for the Queens real estate market. Now that millions of people are out of a job, we cannot make that prediction anymore.
And lastly, when we look at Month’s supply, at the end of Q1 it was siting at 7 months. This is up from the month’s supply we had in the previous quarter but still considered a “balanced market”. As you can see, prior to this pandemic reaching our shores, the market was in a very healthy place. Now, it is all unknown, but this quarter will give us a good indicator of what to expect in the future.
We’ll continue to watch the market and keep you posted 🙂
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: 4,444
- Homes selling each month: 633
- Month’s Supply: 7.0
Queens Home Sales
The Long Island Board of Realtors reported a total of 1806 home sales during the first quarter of 2020. This was DOWN 9.3% from the previous quarter and DOWN 4.2% compared to the first quarter of 2019. Specifically, sales for Residential homes were UP 6.5%, sales for Condos were DOWN 17.8%, and sales for Coops were DOWN 18.4% compared to the same month last year.
Thinking of Selling ? Contact us for a Free Listing Consultation.
Queens Home Prices
As of March 31, 2020, the median home price in Queens was $600,000, this is unchanged from the previous quarter, and UP 8.1% compared to the first quarter of 2019. Specifically, the median home price for Residential homes was unchanged, median home price for condos was DOWN 5.3%, and the median price for coops was UP 3.8% compared to the same quarter last year.
Thinking of Buying a Home in Queens? Contact us for a Free Home Buyer Consultation.
On April 13, 2020, according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.690 percent with an APR of 3.860 percent. The average 15-year fixed mortgage rate is 3.170 percent with an APR of 3.340 percent. The 5/1 adjustable-rate mortgage (ARM) rate is 3.470 percent with an APR of 3.930 percent.
There is currently a 7 month’s of inventory in Queens, this is down from the 6.1 month’s supply we had last month. As for active listings, currently there are a total of 4,444 homes for sale in Queens. That’s UP from the 4,364 homes we had on the market last month, and DOWN from the 4,741 homes we had on the market in April 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 March 31, 2020, there is a 7 month supply of homes for sale in Queens.
As of March 31, 2020, the Queens real estate market would be considered a “Balanced Market”, slightly in favor of buyers.
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 the 2nd quarter of the year is expected to take a hit.
Once the Governor lifts the stay at home order, if you are still in a position to buy a property, it will definitely be a good time to buy. Interest rates are still low, and demand is expected to take a hit so buyers should have a lot less competition in the 2nd quarter of 2020.
As of March 31, 2020, the average price for a residential home in Queens NY is $750K. Average price for a condo in Queens is $540K. And the average price for a coop in Queens is $300K.
As of March 31, 2020, average days on market in Queens was 87 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.