What to Expect for the 2020 Real Estate Market, & Queens Real Estate Update for December 2019!

NAR (National Association of Realtors®) had a first-ever housing forecast summit this past December. The economists attending said they expect the economy to continue to expand, real estate prices will continue to rise and the see only a small chance for recession in 2020. Lawrence Yun, Chief economist for NAR, feels we will see an increase in inventory levels but not an oversupply nationally, so home prices should continue to move higher but not at the pace of the past years’ increases. Interest Rates for a 30 year fixed-rate mortgage are expected to remain at 3.7% through midsummer and may rise to 3.8% toward the end of the year.

Queens Sold Property Counts for December 2019 were down -2.5% from December 2018 with 632 properties sold compared to 648 in December 2018. Total close sales for 2019 were down less than half of a percent from 2018 sales – 8,178 for this year compared to 8225 units closed last year.

Single and multifamily sales were stronger than condo sales in Queens which were impacted by an oversupply of newly built condos. Co-op sales were also down with an oversupply in particular of one-bedroom apartments. This could be a result of attractive interest rates causing many to trade up to larger homes or apartments.

Closed Median Home Prices were up just slightly over last year in Queens – $615,000 for this December compared to a median price of $610,000 for December 2018. This was a less than 1% increase and shows prices stabilizing after years of continuous price increases.

Inventory levels are up 4% at years’ end over end of 2018 levels – 4,754 properties for sale currently in Queens compared to 4575 for sale last year at this time. Market factors are favoring buyers in most sectors of Queens with six months or more of homes for sale.  Less than six months of inventory represents a seller’s market and where we have been for several years. The average monthly inventory for sale in Queens as of December 2019 was 7 months – favoring buyers.

With interest rates remaining at all-time lows and more homes to choose from, buyers who are feeling more confident about their incomes and employment will begin to enter the housing market. Reports state approximately 8,000,00 1st-time homebuyers nationally will enter the market from 2020 – 2022.

Home values are affected by a variety of factors so reach us at 800-742-0126 or helen.keit@kw.com for an accurate update for your home’s value in this changing market.

 

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Statistics provided by Long Island Board of Realtors Multiple Listing Service.

Also RIS Media and NAR articles from December 2019.

By Helen Keit Licensed Real Estate Broker

Keller Williams Realty Landmark

32-55 Francis Lewis Blvd Bayside, NY 11358

718-475-2878