October 2016 Queens Real Estate Market Update
A cooling trend in the Queens housing market continued in September with diminished inventory levels being the primary driving force behind the decline. Despite near rock-bottom mortgage rates and healthy job growth, Queens home sales eased after reaching record-setting levels in August. Affordability concerns have delayed some first-time buyers, which could contribute to pent-up demand in the future. All together, it looks like the tight inventory levels continues to put upward pressure on home prices, which is affecting affordability for home buyers, even with the low rates. Recently we read an article by Lawrence Yun, Chief economist with the National Association of Realtors who stated that while our last housing crisis was a result of too little demand, the next housing crisis will be a result of too little supply.
Absorption Rate: 691 sales/per mo.
Current Available Inventory: 3,670 (Last month: 3,814)
Month’s Supply: 5.3 Months
Last Month: 5.7 Months
Last year: 6.5 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. Keep in mind that month’s supply can vary by neighborhood and property type.
Interest rates remain near all-time lows. Mortgage rates have remained relatively flat; however, Fed Chair Janet Yellen has suggested that an increase in the interest rate may be coming this December.
Queens Home Sales
The Long Island Board of REALTORS® reported Queens home sales at a seasonally adjusted annual rate of 764 homes during the month of September. This was a decrease of 6.9 percent from August, and a decrease of 8.2 percent from September of last year.
Specifically, Residential 1-3 family Queens home sales were down 10.1%, Queens Condo sales were down 16.7%, and Queens Coop sales were down 1.9% compared to this time last year. Over the last 12 months, Queens home sales are down .1%.
Queens Home Prices
The median Queens home price increased to $472,193 in September, which was up 1.5 percent from August and up 9.8 percent from September of last year. The median Queens home price has increased by nearly $43,000 in the past year alone.
Specifically, Residential 1-3 family Queens home prices were up 12.6%, Queens Condo prices were up 12%, and Queens Coop prices were up 11.9% compared to this time last year. Over the last 12 months, Queens home prices are up 8.3%.
Queens Housing Inventory
There was a 5.3-month supply of Queens housing inventory in September, which was a 7 percent decrease from August. The total number of homes for sale decreased by 18.4 percent compared to September of last year.
Specifically, there are currently 2,347 residential 1-3 family homes for sale, 402 Condos for sale, and 918 Coops for sale in Queens county.
Blog Courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.