Queens Real Estate Market Update: February 2016
Home sales dropped in January which is somewhat typical considering the fact that there’s usually a big rush to close by end of year. Sales in January were down from December, but very similar to those of last January. As for Prices, they continued to rise and will most likely continue increasing throughout 2016, however, at a much more modest pace than that of 2014 and 2015. Inventory at the moment is still low, but still at a fairly similar level to that of last February. It will be interesting to see what happens this Spring which is typically when we see more homes hit the market…
Absorption Rate: 747 sales/per mo.
Current Available Inventory: 3,521
Month’s Supply: 4.7 Months
Last Month: 4.7 Months
Last year: 5.6 Months
*Month’s supply over 6 months is said to favor buyers, month’s supply below 6 months is said to favor sellers, and month’s supply of 5-6 months is said to be a balanced market.
Curious how much your Home is worth? Find out now in 15 Seconds
Interest rates declined slightly in January as struggling equities markets created downward pressure on the safe haven assets that heavily influence mortgage rates. Currently, Freddie Mac reports the following figures: 30-year fixed rate, 3.81%; 15-year fixed rate, 3.10%; 5/1-year adjustable rate, 2.91%.
Queens Home Sales
The Long Island Board of Realtors reported home sales at a seasonally adjusted rate of 625 homes in January. This number was very similar to those of last January (2015) which reported sales of 626 homes. Sales in January were actually down 19.8% from the previous month but pretty much the same year over year. Over the last 12 months, sales are up 1.7%, that may seem like a minor figure, but considering that sales were down for most of 2015, this can be very significant if the trend continues. Specifically, Residential home sales are up 4.8%, Condo sales are up 2.4%, and Coop sales are down 3% over the last 12 months.
Queens Home Prices
The local median home price for Queens in January was reported to be $440,000. This was an increase of 4.8% from the previous year and .1% from December. As you can see, the increases are not as dramatic as they were in 2014 and for most of 2015. This is pretty consistent with what we’ve been seeing recently out in the field. There seems to be a steadiness in terms of prices, definitely nowhere near what we were seeing in 2014 when prices were practically skyrocketing. Over the last 12 months, home prices are up 7.7%. Specifically, Residential home prices are up 4.8%, Condo prices are up 11.1%, and Coop prices are up 5%.
The actual number of homes for sale in February fell to 3,521. That is down .5% from January and down 11.7% compared to the same month of the previous year. This combined with the decrease in home sales from December led to the months supply of inventory, which measures the relationship between supply and demand, to remain steady at 4.7 months. There are several variables, both local and domestic, which can affect the market here in Queens, however, It will be interesting to see how many new homes hit the market this Spring.
Blog Courtesy of George & Abigail Herrera, Realtors and Owners of one of the Highest Rated Real Estate Agent Teams in all of Queens County!
Original Article: http://blog.queenshomeselling.com