We hear or read the nationwide news on the housing market but those are very general reports. In order to get a better idea of what is going on in a local real estate market or neighborhood it is important to look at several key factors and compare them over time. This helps one better understand the market dynamics, local market health and trends.
For an analysis of the Queens (NYC) housing market, these statistics (reported by Long Island Board of Realtors Multiple Listing Service) are important: Closed median sale price, pending (in contract) median sale price, number of closed monthly sales, number of pending (in contract) monthly sales, number of properties for sale and months of inventory for sale.
The Closed Median Sale Price for September was $562,000, a 6.1% increase over the median price of $530,000 for last year at this time. Queens has seen property increases much higher than the increases for Nassau and Suffolk Counties on Long Island.
The Pending Median Sale Price for September was $553,000, a -1.7% decrease from last year at this time. Since pending sales are more current than closed sales – which went to contract 2-3 months earlier) this shows a slowdown in price appreciation which could be expected as the 9%+ price appreciation throughout the past year is not sustainable. Also the effect of the increasing interest rates is definitely beginning to press down on prices.
The Number of Closed Monthly Sales for September was 630 homes and apartments versus 715 properties sold last year at this time – a decrease of -11.9%. Buyers have been feeling the affordability squeeze between constantly rising prices and now increasing interest rates. In addition buyers have faced a limited supply of homes for sale in the price range they can afford.
Pending Sales Count for August is -10.8%, down similar to closed sales.
The Number of Properties Currently for Sale in Queens is 4,989, up from 4,252 homes for sale last year at this time – an increase in supply of 17%. More homeowners are deciding to sell feeling conditions are good, and this sentiment will eventually change what has been a several year shortage of homes for sale.
Current Months of Inventory for Sale is 7.4 months versus 5.5 months available for sale last year at this time. Six months of inventory represents a balanced market with equal number of buyers and sellers. Under six months indicates a sellers market, which we have been experiencing. Over six months starts trending to a buyers’ market with more homes for sale than buyers. (Months of inventory for sale is based on number of properties for sale divided by the number of contracts for the month or rate of sale.)
This is a general overview of Queens and we are starting to see price appreciation slow. This would contribute to a healthier market as currently affordability is being impacted resulting in sales down 12%.
Queens is a large borough and each sector ie. northeast, southwest, central etc. can be similarly analyzed since the above variables and others affect sales in each neighborhood. In addition, there are differences in the luxury market for high-end homes as well as other factors that affect sales of co-ops and condos.
Call or email 800-742-0126 or Helen.Keit@KW.com for a free update on your home’s current value. Also ask about our full menu of relocation services, our 50+ Lifestyle Moves Program, or our Three-tiered Luxury Marketing Program.