The luxury market is defined as the top 10% in sales prices of single family homes in a market area or city. In Queens County, NY, that price range is currently $900,000 and up. As of December 2016, Queens residential closed sales showed a median price pf $464,500, which is 4.6% increase over last year.
There continues to be a two-tiered market in Queens, as in many real estate markets in the United States. There is a shortage of properties for sale under $1,000,000, meaning a sellers’ market with less than 6 months of homes for sale in that price range. Over $1,000,000 there are more properties for sale – more than six months of inventory calculated by the rate of sale-then demand
QUEENS LUXURY HOMES – SOLD PRICES 1/1/2016 – 12/31/2016
Price Range Number Sold
$900,000 – $999,000 199
$1,000,000 – $1,199,000 80
$1,200,000 – $1,499,000 77
$1,500,000 – $1,999,000 31
$2,000,000 – $2,499,000 9
$2,500,000 – $2,999,000 5
$3,000,000 – $3,999,000 1
$4,000,000 – $6,000,000 0
LUXURY HOMES – INVENTORY OF HOMES CURRENTLY FOR SALE IN MONTHS
(The number of months for sale, or supply, in a price range equals the number for sale divided by the average number of contracts per month in that range. Six months, equals a balanced market with equal number of buyers and sellers. Below six months indicates a sellers’ market and above six months a buyers’ market.)
Price Range
$900,000 – $999,000
$1,000,000 – $1,199,000
$1,200,000 – $1,499,000
$1,500,000 – $1,999,000
$2,000,000 – $2,499,000
$2,500,000 – $2,999,000
$3,000,000 – $3,999,000
Number For Sale
$900,000 – $999,000 – 78
$1,000,000 – $1,199,000 – 67
$1,200,000 – $1,499,000 – 69
$1,500,000 – $1,999,000 – 58
$2,000,000 – $2,499,000 – 21
$2,500,000 – $2,999,000 – 11
$3,000,000 – $3,999,000 – 10
Rate of Sale/Contracts Per Month
$900,000 – $999,000 – 15.7
$1,000,000 – $1,199,000 – 9.0
$1,200,000 – $1,499,000 – 7.0
$1,500,000 – $1,999,000 – 4.5
$2,000,000 – $2,499,000 – 1.0
$2,500,000 – $2,999,000 – 1.0
$3,000,000 – $3,999,000 – 1.0
Months of Inventory For Sale
$900,000 – $999,000 – 4.9
$1,000,000 – $1,199,000 – 7.4
$1,200,000 – $1,499,000 – 9.8
$1,500,000 – $1,999,000 – 12.9
$2,000,000 – $2,499,000 – Years
$2,500,000 – $2,999,000 – Years
$3,000,000 – $3,999,000 – Years
For 2016 the highest price home sold in Queens was in Forest Hills with a closing price of $3,350,000. In the past several years one or two sold for $5,000,000. Buyers are looking for the “best of the best” in these high-end homes and will pay top dollar for that. Luxury properties must have unique amenities, quality features and finishes, and cater to buyers who desire a particular lifestyle.
Inman News included in one of their reports recently that the luxury market is expected to be active with a strong dollar still attracting foreign investment. An ever-increasing number of U.S. and foreign investors are recognizing the long-term opportunities of owning luxury property.
Industry experts also feel that the high-end market may benefit from a stock market which has reached record highs. Buying luxury property may be the “right move” at this time to provide balance and an inflation hedge for investors’ portfolios.
Statistics: Long Island Board of Realtors, Multiple Listing Service
Helen Keit, Licensed Real Estate Broker, Certified Luxury Homes Marketing Specialist (CLHMS)
Call 800-742-0126 or email Helen.Keit@KW.com for our customized “Three Tiered Luxury Marketing Program