The recovery of the Queens housing market now appears to be well under way. While demand is still high, even with credit conditions constraining buyers, the low level of inventory is having a significant effect in most neighborhoods. This is likely to persist through the year due to the rapid sales velocity and only modest additions to inventory levels. May & June saw a modest jump in sales velocity where existing home sales were at the highest point since August 2012. Prices continued to rise in June, marking the eighth consecutive month of price growth. Current absorption rate is 9.3 months, which is down from last month’s supply of 9.5 months. With affordability still at historically high levels and the market continuing to improve, it could be an opportune time for a well-informed buyer or seller to enter the market.
Queens NY Interest Rates
Long-term U.S. mortgage rates jumped half a point in May, reflecting consumer confidence in the economy and the very active housing market. The 30-year fixed rate mortgage averaged 3.81% in May, which was a high not seen in over a year. The 15-year fixed rate mortgage had an average rate of 2.98%, while the 1-year adjustable rate mortgage slipped to 2.54% in May. Rates have stayed fairly close to April levels for most of the month until the growing economy and increasing momentum caused the leap in interest rates at the end of May. It will be interesting to see if this gain carries over into the next month.
Queens NY Home Sales
Home sales decreased in June with total existing home sales dropping 3.3% from May, but still up 5.6% year-over-year. The positive housing numbers are indicative of the New York & U.S. economy strengthening. Existing home sales are at the highest level since August 2012. June marked the eighth month that sales have recorded year-over-year gains. The most significant jump in year-over-year home sales are in the Condo market. Residential & Coop sales are still fairly similar to the sales seen at this time last year.
Queens NY Home Prices
Median home prices continued to rise from a year earlier with an increase of 10.1% from last June. This marks eight straight months of increases, with the exception of February which was affected by Super Storm Sandy. The Queens median existing home price for all housing types was $380,000 in June, which is a 4.1% increase from the median home price in May ($365,000). The median price level has been gaining year-over-year for eight consecutive months as of June, a strong sign of the market recovery in Queens.
Queens NY Housing Inventory
Total housing inventory at the end of June dropped 1.3% to 6,123 existing homes, which represents a 9.3-month supply of homes. This is down from the 9.5-month supply in May. Inventory is down 28% below year-ago levels, but this is indicative of the current recovery. The housing numbers are overwhelmingly positive. However, the number of available homes is unlikely to grow, unless new home construction ramps up quickly by an additional 50%.
Courtesy of George & Abigail Herrera with the Queens Home Team @ Keller Williams Realty Landmark II.