June 2015 Queens Real Estate Market Update
The pace of home sales rose in June, but were still below the pace of sales last June. The combination of buyers looking to take advantage of low interest rates before they increase further coupled with less homes being on the market than the same time last year has led to a sluggish pace in home sales. Even with more houses coming on to the market, demand has continued to outpace supply on a local level this year, and home prices have continued to rise as a result. As a result, this summer is likely to be the strongest market for existing homes since the recovery began.
Month’s Supply: 7 Months
Last Month: 6.9 Months
Last year: 8.75 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.
30-year interest rates reached 4% in June for the first time since last September. Currently, Freddie Mac reports the following figures: 30-year fixed rate, 4.00%; 15-year fixed rate, 3.23%; 5/1-year adjustable rate, 3.00%.
To put things in perspective (National avg for 30 year fixed rate mortgage, Last 4 years):
Queens Home Sales
Homes sold at a seasonally adjusted annual rate of 664 homes in June based on the report released by the Long Island Board of Realtors. This was up 7.4% from May’s figures but down 8.4% from the same month of the previous year. June was a very strong month for existing home sales and recent reports on pending contracts indicate that July will likely be a strong month for sales as well. Specifically, Residential home sales are down 6.2%, Condo sales are down 6.5%, and Coop sales are down 11.9% compared to June of last year.
Queens Home Prices
The pace of growth for home prices slowed slightly from May to June; however, inventory remains at such a level as to allow for price growth above the 4%–6% range typically considered healthy. In June, the median home price dropped to $391,250 according to LIBOR. This was an decrease of 3.8% from May but was up 7.2% from June 2014. Specifically, Residential home prices are up 6.5%, Condo prices are up 3.2%, and Coop prices are up 13.1%.
To put things in perspective (Median Home Price, Last 4 Years):
July 2015: $391K
July 2014: $373K
July 2013: $380K
July 2012: $345K
Queens Housing Inventory
There were 1.2% less homes for sale in June than there were in May, and inventory across the county is still significantly below those of last year levels. At the moment we have 4,333 homes available for sale, that is 24.8% below the same month of the previous year. Demand continues to grow at a much faster rate than supply, this has led to the months of supply of inventory, which measures the relationship between supply and demand, to about 7 months in June. This number remains tight as low interest rates spur more buyers to enter the market and new home construction has not yet reached a pace which would provide significant relief to many of the county’s hotter markets.
To put things in perspective (Active Homes for sale, last 4 years):
July 2015: 4,333 homes for sale
July 2014: 5,760 homes for sale
July 2013: 6,123 homes for sale
July 2012: 8,429 homes for sale
Courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.
BUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com