Queens has become a destination of choice over the past several years as Brooklyn and Manhattan prices have continued to rise. However many Queens buyers have been frustrated over the past year or two. Those looking to buy their first home have encountered multiple bidding scenarios and lost out on homes they had wanted. Many looking to trade up to a larger home have chosen to sell and rent until they found what they were looking for. Similarly those with larger homes looking to downsize, yet stay in their same neighborhoods they enjoy, have found it tough to accomplish this lifestyle change.
The numbers tell the story. For September 2017 per Long Island Board of Realtors Multiple Listing Service closed sales units were down 23.9 % from last year at this time. The median sales price has increased 12.6% over last year with the median increasing from $475,000 in 2016 to $535,000 for September 2017. The median price for single family/multifamily homes is $726,000; $519,000 for condos and $260,000 for co-ops.
The tight inventory has been a main cause of the price rise with buyers bidding higher to “win” a home against competing offers. This contributed to fewer homes selling as buyers, unable to find a home that suited them, have decided to hold off on their purchase.
There may be a shift beginning, which industry experts are predicting. Affordability continues to be a problem impacting demand and the housing cycle has been on the upswing for over 8 years and nearing the top before an adjustment (housing cycles in the past have been approximately 10 years).
In a recent national survey of homeowners a higher percentage than usual felt that now was a good time to sell – 36% of those surveyed. A lower number of buyers felt it was a good time to buy – 18%. Recent multiple listing stats reflect this in that there has been a 49% increase in listings over last year.
Along with this the current months of inventory for sale in Queens, based on number of homes for sale divided by monthly contracts, has increased from an average of 4.5 months of inventory this August to 5.5 months for sale in September. Six months of inventory for sale represents a balanced market with equal number of buyers and sellers. More than six months indicates a buyers market and less than six months is indicative of a sellers’ market – what we have been experiencing with multiple bidding and rising prices. So buyers will start to see more homes to choose from.
The Queens luxury market encompasses homes selling in the top 10%. Breaking it down into three price segments we see a shortage of homes for sale versus demand in the $1,100,000 – $1,500,000 range, and an oversupply in the $1,600,000 to $2,000,000 and the over $2,000,000 price categories.
Queens is definitely in demand, and as opposed to years past, we have people looking to move here rather than move away. It is good to discuss your options with an experienced agent as you make plans for a lifestyle change. Knowing your choices can help for better decision making and smarter moves!
Call for a free equity check for your home’s current value – 800-742-0126
Call or email for details on our 50+ Lifestyle Moves Program – Helen.Keit@KW.com
Helen Keit – Licensed Real Estate Broker – Keller Williams Realty Landmark
The Keit Team at Keller Williams Realty Landmark – “Moving Across Town, Across The Country Or Around The World – We Make Moving Easy!”
*All statistics from Long Island Board of Realtors MLSLI*