Queens Real Estate Market Report 2020, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Have a question? Contact Us anytime.
Download full report at: https://www.queenshometeam.com/wp-content/uploads/2020/07/Q2_2020.pdf
Q2 has officially ended and although the numbers are startling, they were also expected considering the stay at home orders and overall impact of COVID-19. As we look at the sales data from the second quarter of 2020, it is obvious that home sales plunged in April, May, and June. Sales dropped by about 51% from Q1 and as you can imagine, we have not experienced something that drastic in quite some time. As for home prices however, they dropped slightly from Q1 but remained up over Q2 in 2019. Home prices have still been positive even with all things considered and that is a sign of the resiliency of our market. Inventory is also up this quarter, and that is more a result of properties that didn’t sell as opposed to more homes hitting the market. Still, inventory is up about 24% compared to Q1 of 2020.
Now, to put all this into perspective, we look at Month’s Supply which is the figure that lets us know if a particular market is favoring buyers or sellers. Month’s supply below 6 months is said to favor sellers (i.e. Seller’s Market), month’s supply between 6-7 months is said to be a balanced market, and month’s supply over 7-8 months is said to favor buyers (i.e. Buyer’s Market). At the end of March (Q1) we had month’s supply of 7 months and the market did indeed feel very “balanced” around that time (pre-covid). Now that the pandemic has had it’s initial impact on our local market, we are looking at month’s supply of 11.9 months at the end of Q2. This means that we went from a balanced market to a pronounced buyer’s market in just one quarter. This is a dramatic shift, the likes of which we have never seen.
The good news is that the best case projection for the market coming out of quarantine appears to have been realized. In other words, some people were projecting a steep decline that we would not recover from this year, and some were projecting a delayed spring market. Based on what we’ve been experiencing since May, the latter seems to be what came to fruition. Our business came to a stand still in March and April, but as soon as May came around we started getting a lot of calls and inquiries from buyers and sellers looking to make a move this year. Since May, activity has remained high on both sides. Interest rates have hit historic lows and that has driven demand for any buyers who are still in the position to buy. For people who have been thinking of selling, this pandemic seems to have been the nudge they needed in order to get the process started.
All in all, the market is very active right now and it does indeed feel like the spring market that we would have had if COVID never happened. Being that interest rates are extremely low, and given that the numbers have come down dramatically in NYC, we are anticipating that the market will remain strong for the remainder of the year. In our opinion, the only thing that change this projection is a second wave and/or shutdown, or large scale job losses in NYC. There is still a lot of uncertainty in the country so we will have to wait and see how Q3 and Q4 turnout, but for now, the market appears to be active and healthy.
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: 5,523
- Homes selling each month: 464
- Month’s Supply: 11.9
Queens Home Sales
The Long Island Board of Realtors reported a total of 940 home sales during the second quarter of 2020. This was DOWN 50.8% from the previous quarter and DOWN 54.9% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 54.8%, sales for Condos were DOWN 53.4%, and sales for Coops were DOWN 55.5% compared to the same quarter last year.
Thinking of Selling ? Contact us for a Free Listing Consultation.
Queens Home Prices
As of June 30, 2020, the median home price in Queens was $590,000, this is DOWN 1.7% from the previous quarter, and UP 2.6% compared to the same quarter last year. Specifically, the median home price for Residential homes was unchanged, median home price for condos was UP 2.9%, and the median price for coops was UP 4.5% compared to the same quarter last year.
Thinking of Buying a Home in Queens? Contact us for a Free Home Buyer Consultation.
On Friday, July 24, 2020, according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.130% with an APR of 3.410%. The average 15-year fixed mortgage rate is 2.720% with an APR of 3.030%. The 5/1 adjustable-rate mortgage (ARM) rate is 3.190% with an APR of 3.880%.
There is currently 11.9 month’s of inventory in Queens, this is UP from the 7 month’s supply we had last quarter. As for active listings, currently there are a total of 5,523 homes for sale in Queens. That’s UP from the 4,444 homes we had on the market last quarter and UP from the 5,156 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 June 30, 2020, there is a 11.9 month supply of homes for sale in Queens.
As of June 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 the 3rd quarter of the year is expected to be very high.
As soon as the Governor lifted the stay at home order, we realized that there was a pent up demand. If you are in a position to buy, then now is definitely a good time to buy because interest rates continue to hit all time lows.
As of June 30, 2020, the median price for a residential home in Queens NY is $750K. Median price for a condo in Queens is $545K. And the median price for a coop in Queens is $305K.
As of June 30, 2020, average days on market in Queens was 93 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.