Last Updated on January 26, 2024
Queens Real Estate Market 2023, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Need Help? Contact Us
That’s a wrap for 2023. As we write this market update, we’re already in the new year (2024) and already off to the races. In reviewing the numbers for Q4 as well as the entire year of 2023, it is very interesting to see where the market ended up, but really it’s not all that surprising.
In Q4, we experienced the peak in mortgage rates for the year hitting the jaw dropping 8% mark. That was in October, and as you can imagine, we felt an immediate impact in buyer demand at that time. However, since then mortgage rates backed off a full percentage point and as we write this, the average rate for a 30 year fixed rate mortgage is 6.90%. This drop in rates spurred new buyer activity towards the end of the year and that led to an increase in pending sales as we closed out 2023.
In terms of inventory, it remained low for all of 2023 and as we write this, available inventory across Queens is down 7.8% year over year. This lack of inventory is what has kept home prices from falling drastically in our opinion. Although as a whole prices were down for the year, the decrease was pretty modest, and there are actually areas across Queens where prices are still up.
As we head into 2024, local market conditions remain the same: Higher mortgage rates coupled with low inventory levels. Based on what we’re seeing so far in December and January, it appears that the market is still moving. For example, almost all of the properties we’ve listed in the last two months have sold and they were a mix of housing types, 1 family, 2 family, coops and condos. In addition to that, all of our listings have been getting a good amount of calls, inquiries, and showing requests. This signifies to us that buyers are still out there.
General consensus is that mortgage rates will remain in the 6’s for the majority of the year. If that’s the case, then we anticipate a similar year to 2023, but probably with more transactions as mortgage rates are lower and consumer sentiment appears to be more positive than last year.
We’ll continue to watch the market and keep you posted on any new 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: 4,267 (was 4,842 last quarter)
………. Average # of Homes selling each month: 730 (was 702 last quarter)
………. Month’s Supply: 5.8 (was 6.9 last quarter)
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Closed Home Sales
The One Key MLS reported a total of 2,144 closed home sales during the 4th quarter of 2023. This was DOWN 4% from the previous quarter and DOWN 3.2% compared to the same quarter last year. Specifically, Residential home sales were DOWN 7.9%, Condo home sales were UP 12.6%, and Coop sales were flat compared to the same quarter last year.
Over the last 12 months (i.e. Jan – Dec 2023), closed home sales were DOWN 23.1%.
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Pending Home Sales
As for pending home sales, the One Key MLS reported a total of 2,066 pending homes sales during the 4th quarter of 2023. This was DOWN 10% from the previous quarter and UP 11.9% compared to the same quarter of last year. Specifically, residential pending sales were UP 9.5%, condo pending sales were UP 35.1%, and coop pending sales were UP 19.7%.
Median Home Price
As for Home Prices, the One Key MLS reported a median home price in Queens of $650,000, that’s DOWN 3.7% from the previous quarter and DOWN 4.4% compared to the same quarter of last year. Specifically, the median price for residential homes was DOWN 1.4%, median price for condos was UP 5.5%, and the median price for coops was UP 1% compared to the same quarter last year.
Over the last 12 months (i.e. Jan – Dec 2023), the median home price in Queens is DOWN 4.4%.
The average rate on 30-year fixed mortgages rose to 6.93 percent this week, up from 6.88 percent last week, according to Bankrate’s weekly national survey of large lenders.
Mortgage rates fell sharply in mid-December as the Federal Reserve wrapped up its final meeting of 2023 with no rate hike. At the time, the Fed signaled several rate cuts in 2024. Mortgage rates responded by free-falling from 7.21 percent to 6.88 percent in a single week.
However, any more steep declines in mortgage rates seem unlikely for now, in large part because the Fed is again talking about keeping rates higher for longer. Two recent data points have slowed the momentum: higher-than-expected jobs numbers and an uptick in inflation. Those readings are cooling expectations for a rate cut at the Fed’s next meeting.
Learn more: Weekly mortgage rate trend analysis
There is currently 5.8 month’s of inventory in Queens, this is DOWN from the 6.9 month’s supply we had last quarter, and UP from the 5.6 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 4,297 homes for sale in Queens. That’s DOWN from the 4,842 homes we had on the market in the previous quarter and DOWN from the 4,660 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.