Queens Real Estate Market Report: Q3 2023, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Need Help? Contact Us
The third quarter of 2023 brought both challenges and opportunities to the Queens real estate market. Pricing in Queens remained competitive during Q3, with a quarter over quarter increase of about 4% and a modest decline year over year of around 1%. Interestingly, Residential homes and condos both saw a year over year decline in their median sale price.
As for inventory, one of the challenges in Queens during the third quarter was the continuing low housing inventory. Limited supply created a balanced market overall. Although sales were down and mortgage rates are still high, the scarcity of housing options added pressure to home buyers, causing them to still compete for good properties. What we’re seeing is that the properties that need work are the ones that are taking longer to sell.
In terms of property types, both one and two family homes in good – excellent condition experienced solid demand. Condos and coops in good condition have also seen steady demand as some buyers who were looking for a house have now switched their search to apartments due to rising mortgage rates.
As we look ahead to the final quarter of 2023, several trends seem to be in play. Pending sales have been down all year but spiked in Q3, closed sales are down, inventory remains low, and home prices have been slowly trending downward for most of the year.
The issue of limited housing inventory may persist, especially due to the lock in effect and that makes it challenging for potential buyers to find their ideal homes. Emerging neighborhoods in Queens may continue to develop and gain popularity as more and more buyers chase home affordability.
The overall health of the national and local economy will play a significant role in the real estate market’s future trajectory.
We’ll continue to watch the market and keep you posted on nee developments 🙂
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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: 4,842 (was 4,899 last quarter)
………. Average # of Homes selling each month: 702 (was 645 last quarter)
………. Month’s Supply: 6.9 (was 7.1 last quarter)
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Closed Home Sales
The One Key MLS reported a total of 2,196 closed home sales during the 3rd quarter of 2023. This was UP 9% from the previous quarter and DOWN 22% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 19.1%, Condo sales were DOWN 26.2%, and Coop sales were DOWN 25.4% compared to the same quarter last year.
Over the last 12 months, closed home sales are DOWN 28%.
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Pending Home Sales
As for pending home sales, the One Key MLS reported a total of 2,412 pending homes sales during the 3rd quarter of 2023. This was DOWN 3.6% from the previous quarter and UP 4.2% compared to the same quarter of last year. Specifically, residential pending sales were DOWN 4.7%, condo pending sales were UP 10.5%, and coop pending sales were UP 18.9%.
Median Home Price
As for Home Prices, the One Key MLS reported a median home price in Queens of $674,000, that’s UP 3.7% from the previous quarter and DOWN 0.9% compared to the same quarter of last year. Specifically, the median price for residential homes was DOWN 2.2%, median price for condos was DOWN 3.4%, 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 3.1%.
Mortgage rates closing in on 8%
The average rate on 30-year mortgages jumped to 7.99 percent this week, up from 7.75 percent last week, according to Bankrate’s weekly national survey of large lenders. That’s the highest level since August 2000, according to Bankrate data.
The increase reflects a variety of factors, including the Federal Reserve’s continuing fight against inflation, rising Treasury yields and the fading prospects of a recession. The central bank decided against another rate hike at its Sept. 20 meeting, but it left open the chance of another hike before the end of the year.
While the Fed doesn’t directly set fixed mortgage rates, it does establish the overall tone. “Higher for longer” is the new mantra not just for the central bank, but also for mortgage rates.
The most relevant benchmark for 30-year mortgage rates is the 10-year Treasury yield, which briefly dipped amid the recent conflict in the Middle East. However, 10-year Treasury yields are rising again — they were near 5 percent as of Oct. 19.
Many borrowers have been sidelined by the recent rise in rates. Inflation, the economy and Fed policy will remain the main factors driving mortgage rates in the coming months.
Learn more: Weekly rate trend analysis
There is currently 6.9 month’s of inventory in Queens, this is DOWN from the 7.6 month’s supply we had last quarter, and UP from the 5.9 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 4,842 homes for sale in Queens. That’s DOWN from the 4,899 homes we had on the market in the previous quarter and DOWN from the 5,551 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.
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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.