We have officially begun the second half of the year and the story has remained the same for most of 2018. In July, home sales remained pretty flat compared to June sales. Residential home sales and condo sales were both up, while coop sales took a dip in July. Overall, sales were up slightly year over year, but for most of 2018 we’ve seen a slight decrease in year over year sales. While we usually attribute this to low inventory, this year we believe that it is due more in large part to the higher interest rates which may have taken some buyers out of the market. Still, sales are pretty similar to the sales figures we saw in 2017, and even when they are lower, they are just slightly lower.
As for Home prices, July saw another increase in month over month prices, and year over year prices were up once again as well. Although sales have dipped and rates have risen, prices seem to be holding a steady upward trend. The difference we’re seeing this year is that the price increases aren’t as dramatic as the prior 2-3 years. This year it feels like we’re seeing a more “natural” and healthy appreciation for homes. This is good in our opinion, and as long as rates increase in a modest and steady way, then it should not have any drastic impact on our local market.
Regarding available inventory on the market in Queens, July saw another increase in # of homes for sale. This marks the 6th consecutive month of inventory increases. To put that into perspective, in January 2018 we had 3,404 homes for sale in Queens, and right now we have a total of 4,331 homes for sale, that’s almost 1,000 more properties for sale.
As for Month’s Supply (the indicator of whether a market is favoring buyers or sellers), currently we have a 6.5 month supply of homes in Queens. Month’s supply below 6 months is said to favor sellers, while month’s supply over 6 months is said to favor buyers. Month’s supply of 6-7 months is said to be a “balanced market”. So, at this time the Queens real estate market would be classified as a balanced market.
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
What is Absorption Rate? Absorption rate is the rate at which homes sell in a given area during a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. For example, if there are 100 homes listed for sale in a certain area, and 10 homes sold over the last month,
then the absorption rate is 10/100 = 10%. Being that closed sales are a lagging indicator, we calculate Absorption Rates using pending sales from the previous month and this gives us better insight as to where the market is right now.
An absorption rate of 20% or higher means that homes are selling quickly and the market favors sellers. Lower absorption rates mean that homes are not selling quickly and supply is much greater than demand, favoring buyers.
Absorption Rate in Queens NY
New 1 Family Homes for Sale in Queens
New 2 Family Homes for Sale in Queens
The Long Island Board of Realtors reported Queens home sales at a rate of approximately 744 homes during the month of July. This was an increase of .001 percent from June and an increase of 2.3 percent from July of last year.
Specifically, our Queens real estate market report August 2018 shows that Residential home sales were UP 4.3%, Queens Condo sales were UP 8%, and Queens Coop sales were DOWN 3.2% compared to July of last year. Over the last 12 months, Queens home sales are DOWN 1.1%.
New 3 Family Homes for Sale in Queens
The median home price in Queens rose to $587,194 in July, this is an increase of 3.5 percent from June, and an increase of 10.8 percent compared to July of last year. The median home price has increased by approximately $57,000 since last year.
Specifically, our Queens real estate market report August 2018 shows that Queens residential home prices are UP 6.9%, Queens Condo prices are UP 4.3%, and Queens Coop prices are UP 6.1% compared to July of last year. Over the last 6 months, the median home price in Queens is up 12.1%.
Average Home Prices
In March, the average home price for Queens real estate were as follows:
Average sale price for a residential home in Queens was: $823,534
Average sale price for a condo in Queens was: $569,522
Average sale price for a coop in Queens was: $306,219
New Condos for Sale in Queens
There is currently a 6.5-month supply of housing inventory in Queens, this is up from the 6.4-month supply we had in June, and up from the 5.9 month supply we had in August of last year. This year we have actually seen Month’s Supply rise every month since January. To put that into perspective, in January of this year, we had 4.5 months supply of inventory and right now we have 6.5. There are currently 4,331 homes for sale in Queens. This is an increase of 2.8 percent compared to last month, and an increase of 9.9% compared to August of last year when there were 3,941 homes for sale in Queens.
New Coops for Sale in Queens
Queens real estate market report provided by 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 🙂