Queens Real Estate Market Report: Q1 2023, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Need Help? Contact Us
Data Source: https://www.queenshometeam.com/wp-content/uploads/2023/05/Queens-Real-Estate-Market-Report_Q1-2023.pdf
Happy Spring from QHT! The first quarter of the year is in the books and we have some interesting data to dive into.
If you live in the US and have access to a phone or TV, then you already know where the country stands and economically. In short, for the last 12+ months we’ve been in a fed rate hiking cycle due to the rising inflation that we experienced during the pandemic. This has resulted in higher lending rates, higher mortgage rates, lower home affordability, a few bank collapses, a volatile stock market, etc. In addition to this, the labor market remains tight, employment rate remains at record lows, and broad consensus is that a recession is needed in order to cool down inflation.
We say all this to recap what’s been happening over the last year or so. If you’ve been reading our past market reports then you know that even with all of this volatility, the Queens real estate market has remained fairly stable. However, this quarter may be the one that reflects the last year of economic policy and turbulence.
For example, this quarter is the first one in over 10 years where we are seeing a negative number in the year over year median home price. The last time we saw a drop in home prices here in Queens was back in 2012. Coincidentally, that is also the year that the most recent seller’s market began. The year over year drop in median price for Queens was -7.2% so not a small drop. This is a significant change so we will have to monitor the next 2-3 quarters to see if it is a one time deal or if this is the beginning of a trend.
As for home sales, they dropped 34.3% when compared to Q1 of 2022. Pending sales also experienced a decline falling 18.6% from Q1 of 2022. This should not be surprising given the high home prices, high mortgage rates, consumer sentiment, and market volatility that we’ve been experiencing. Based on what we’ve been seeing in the field, buyers seem to be very cautious and many of them understand that if they are in the market to buy, they have more leverage than they have in years past.
For home buyers, this should be welcome news as it means that good opportunities and deals will likely become more common. We’ve actually started seeing this first hand so we can assure you that there are good deals that are starting to appear in the market. We actually started a “Real Estate Deals of the Week” email just so that we can stay on top of attractively priced properties. For potential home sellers, this may not be the best news, but the good news is that you have a decade of home price appreciation which should ensure that you equity remains in a good position. If the market continues to shift towards a buyer’s market, then the name of the game will be pricing and strategizing.
In a buyer’s market there is less demand for homes which usually leads to supply growth given that less homes are absorbed by the market. In this type of market, the properties that do sell are usually the ones that offer the most value for the price. Put differently, in a seller’s market buyers don’t have many options so they have to settle for whatever is available, and most of the time they have to pay a premium because there is stiff competition. On the other hand, in a buyer’s market there are more options available and less competition so that gives home buyers leverage when submitting and negotiating offers. If you’re thinking of selling within the next year, striking that balance of price and value will be what ultimately determines if you actually sell or not.
Lastly, in terms of inventory, it is still fairly low right now. We have about 4,800 homes for sale in Queens and that should keep prices from falling drastically. If inventory were to grow significantly over the next year or two, that would put downward pressure on home prices and drive us further into a buyer’s market. However, as of right now we do not see a potential catalyst that would spur a big spike in inventory on the market, especially since many homeowners have equity and ultra low mortgage rates (i.e. The Lock in Effect). For perspective, when we first started creating this report in 2012, there were approximately 8,577 homes for sale.
We’ll continue to watch the market and keep you posted on our insights.
Free List of Comps
A free list of closed sales, near your property, and sold within the last 6 months.
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 currently Available for Sale: 4,815 (was 4,660 last quarter)
………. Average # of Homes selling each month: 677 (was 828 last quarter)
………. Month’s Supply: 7.1 (was 5.6 last quarter)
Free Home Valuation
A complimentary home value range from local Queens real estate experts.
Queens Closed Home Sales
The One Key MLS reported a total of 1,859 closed home sales during the 1st quarter of 2023. This was DOWN 15.7% from the previous quarter and DOWN 34.3% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 37.1%, Condo sales were DOWN 48.3%, and Coop sales were DOWN 23% compared to the same quarter last year.
Over the last 12 months, home sales are DOWN 14.6%.
Queens Pending Home Sales
As for pending home sales, the One Key MLS reported a total of 2,286 pending homes sales during the 1st quarter of 2023. This was UP 21.3% from the previous quarter and DOWN 18.6% compared to the same quarter of last year. Specifically, residential pending sales were DOWN 20.6%, condo pending sales were DOWN 33.1%, and coop pending sales were DOWN 9.6%.
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Queens Home Prices
As for Home Prices, the One Key MLS reported a median home price in Queens of $640,000, that’s DOWN 5.9% from the previous quarter and DOWN 7.2% compared to the same quarter of last year. Specifically, the median home price for residential homes was DOWN 2.6%, median home price for condos was DOWN 5%, and the median price for coops was DOWN 1.6% compared to the same quarter last year.
Over the last 12 months, the median home price in Queens is DOWN 0.8%.
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A monthly roundup of articles, resources, and information related specifically to NYC homebuyers.
Mortgage Rates in NYC
Mortgage Industry Insights
Fed lifts rates again, but the tightening cycle might be over
The Federal Reserve hiked interest rates in May, but also indicated a potential halt to further increases as inflation shows signs of stabilizing.
Ahead of the central bank’s announcement, the average 30-year fixed-rate mortgage cost 6.52 percent, according to Bankrate’s national survey of large lenders. The rates on fixed mortgages don’t parallel the Fed’s moves, but there is some link between what the Fed does, the broader economy and how the mortgage market responds.
“The highest borrowing rates in years will get a little bit higher for credit cards, home equity lines of credit, auto loans and personal loans,” says Greg McBride, chief financial analyst for Bankrate. “Mortgage rates don’t take direct cues from the Fed and will instead respond to the outlook for the economy and inflation. A slowing economy and an easing of inflation pressures are the prerequisites for lower mortgage rates.”
Find out what experts predict for mortgage rates in Bankrate’s forecast.
There is currently 7.1 month’s of inventory in Queens, this is UP from the 5.6 month’s supply we had last quarter, and UP from the 5.4 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 4,815 homes for sale in Queens. That’s UP from the 4,660 homes we had on the market in the previous quarter and DOWN from the 5,047 homes we had on the market at this time last year.
Queens Real Estate Market 2023, provided by the Queens Home Team at Keller Williams Realty Landmark II. Have a Question? Contact Us anytime.
>> Click Here to See all Queens Housing Market Reports dating back to 2012.
Good Reads & Listens
Queens home prices fell over the past year and are expected to continue drifting lower: report
What Should New York Homebuyers Expect in 2023?
NYC Real Estate Market Begins to Cool, But Rents Remain High
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*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.