Last Updated on October 27, 2022
Queens Real Estate Market Report 2022, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Have a question? Contact Us
Data Source: https://www.queenshometeam.com/wp-content/uploads/2022/10/Queens-Real-Estate-Market-Report_Q3_2022.pdf
Market Snapshot
Happy Fall y’all! Hope you’re enjoying the weather and breaking out those flannels 🙂 Here at QHT headquarters we’ve been trying to stay warm in this cooling real estate environment. As you probably know, mortgage rates broke 7% recently and this time they are pretty sticky. As of right now, mortgage rates are in the high 6’s – low 7’s, that’s a far cry from the 3.5% mortgage rates we had in October of 2021. Essentially, we are in an environment where rates are double what they were a year ago and that has obviously had an impact on the local market.
The good news is that the rising rates have not totally upended the market in Queens. This could be due to two things, 1) The fact that our market did not overshoot to the upside during the pandemic (i.e. remember flight to the suburbs) and 2) The fact that we still have fairly low inventory in Queens. This quarter (Q4) will tell us a lot about what we can expect in 2023 because we are slowly nearing the end of the rate hiking cycle. If we can remain steady during this last quarter of the year, that will be a sign of the resilience of the Queens real estate market.
As for what we’re seeing personally, thankfully our listings have still been moving, just a little slower than we’re used to. In terms of our buyer clients, some have remained in the market while others have decided to back out of the market altogether. Fortunately we’ve still been getting good activity on our listings, and although offers aren’t as easy to come by, we’ve been able to negotiate win win agreements and move most of our clients into contract. This could be a result of proper pricing, and/or it can also be a sign that the buyers who are still in the market, are very motivated to buy.
One of the most interesting things we’ve been seeing this year is highly motivated sellers. For example, within the last 5-10 years if an offer were to come in $100K below asking price on a house, we wouldn’t even entertain it, but in this market, motivated sellers are actually entertaining these offers and as long as buyers are willing to play ball, motivated sellers are willing to find a win win. This is something new for us, but it is indicative of the “market of the moment” where sellers who want to sell will do what it takes to get it done, and buyers who want to buy may be able to find a good opportunity.
We’ve also been seeing buyers use strategies like ARM loans and 3-2-1 buy downs in order to lock in lower mortgage rates. Both of these can be good strategies if you’re in the market to buy. The 3-2-1 buy down in particular can be pretty attractive because it gives you a lower rate for 3 years and then if rates fall between now and the fourth year, you can refinance to a long term fixed rate.
Regarding home sales, they have been gradually declining all year, likely due to the rising rates which have had a negative impact on demand. However, home prices have not gone negative and that is probably because inventory and month’s supply has remained low. What we are noticing on the seller side is that properties that need work are taking longer to sell, while properties that are in good – excellent condition have been selling, and sometimes pretty quickly. All in all, the Queens’ market has remained steady, contrary to what you may be hearing on national media channels. In our opinion, all of those areas around the country that overshot to the upside will likely be in for a bumpy ride on the downside. Here in Queens, if inventory remains tight, it may just end up being what keeps the market stable.
We’ll see how it all plays out and keep you posted.
QHT Listings for Sale
Month’s Supply
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: 5,551 (was 5,411 last quarter)
………. Average # of Homes selling each month: 945 (was 938 last quarter)
………. Month’s Supply: 5.9 (was 5.8 last quarter)
Queens Closed Home Sales
The One Key MLS reported a total of 2,767 closed home sales during the 3rd quarter of 2022. This was DOWN 4.7% from the previous quarter and DOWN 9.1% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 12.9%, Condo sales were DOWN 11.8%, and Coop sales were DOWN 1.1% compared to the same quarter last year.
Over the last 12 months, closed home sales are UP 11%.
Queens Pending Home Sales
As for pending home sales, the One Key MLS reported a total of 2,520 pending homes sales during the 3rd quarter of 2022. This was DOWN 14% from the previous quarter and DOWN 16.1% compared to the same quarter of last year. Residential pending sales were DOWN 19.2%, condo pending sales were DOWN 22.9%, and coop pending sales were DOWN 7%.
Queens Home Prices
At the end of Q3 2022, the median home price in Queens was $680,000, that’s UP 2.3% from the previous quarter, and UP 2.5% compared to the same quarter of last year. Specifically, the median home price for residential homes was UP 5.7%, median home price for condos was DOWN 1.6%, and the median price for coops was UP .6% compared to the same quarter last year.
Over the last 12 months, median home price in Queens is up 4.6%.
Mortgage Rates in NYC
Mortgage Industry Insights
Source: Bankrate.com
“The benchmark fixed rate on 30-year mortgages is closing in on 7 percent, its highest level since 2007, according to Bankrate’s national survey of large lenders.
“Interest rates are going up at a faster pace than most of us have ever seen in our adult lives, and with the amount of global debt out there, this makes for a troublesome combination,” says Greg McBride, chief financial analyst for Bankrate. “Volatility and uncertainty are to be expected, but we’re getting to the point where it pays to expect the unexpected. This is a unique time.”
After rapidly rising in the early months of 2022, the 30-year fixed mortgage rate started to waver in June, approaching 6 percent, then settling into the 5s. That breather was short-lived, as rates resumed rising and topped 6 percent in September. This month, some offers have already broken through the 7 percent threshold.”
Inventory
There is currently 5.9 month’s of inventory in Queens, this is UP from the 5.8 month’s supply we had last quarter, and DOWN from the 6.3 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 5,551 homes for sale in Queens. That’s UP from the 5,411 homes we had on the market in the previous quarter and DOWN from the 5,771 homes we had on the market in the same quarter of the previous year.
Queens Real Estate Market Report 2022, 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
NYC Real Estate Market Begins to Cool, But Rents Remain High
The Light: Demand Shifting from Owning to Renting
Housing Markets in Deep Recession
Housing market predictions for 2023
About Us
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.
There is currently 5.9 months of supply in Queens NY.
Based on the current month’s supply of housing inventory, the Queens real estate market would currently be considered a “Balanced Market”.
Mortgage rates are up so demand is waning, however, inventory remains low so from a supply demand standpoint, the market is pretty balanced. As a result, if your life situation calls for it, selling can definitely be an option.
Buying is all about your situation and when you are prepared to buy. If you plan to own your property for 10+ years, then it is always a good time to buy. However, if you are looking to buy and re-sell within the next 3-5 years, it is harder to say. Mortgage rates are double what they were last year and that has had an impact on demand, however, it has also created opportunities for active buyers because there is much less competition for homes.
The median price for a residential 1-3 family home in Queens NY is currently $905K. Median price for a condo in Queens is currently $578K. And the median price for a coop in Queens is currently $320K.
Average days on market for Queens NY is currently 83 days.
In general, if a property is priced right, a seller should be able to find a buyer within 30 – 60 days. As for contract-to-close, from the date of contract signing, it typically 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.
Comprehensive Valuation
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.