Queens Real Estate Market Report: Q2 2023

Queens Real Estate Market Report: Q2 2023, courtesy of the Queens Home Team at Keller Williams Realty Landmark II. Need Help? Contact Us

Data Source: https://www.queenshometeam.com/wp-content/uploads/2023/07/Queens-Real-Estate-Market-Report_Q2_2023.pdf

Market Snapshot

Welcome to the third quarter of the year. Now that Q2 is in the books, we are reflecting back to see what the current market trends are, and what we are likely to see moving forward.

All in all, the market has remained pretty resilient in 2023, although we have seen prices come down in certain neighborhoods, and for specific property types, the declines have been quite mild. If you’ve been watching the news, then you already know that inventory is tight all across America. This has led to home prices either still rising, or just falling slightly. Queens is no exception with inventory around the same level that it was before the pandemic. Considering that home sales are down significantly this year and inventory is still low, it is clear that we aren’t getting a lot of new inventory coming on the market.

This has been good for home sellers because lower inventory levels typically preserve home values, while higher inventory levels typically lead to a decline in home values or very modest price appreciation. One thing is clear, we are in a low demand environment. Mortgage rates are at 7%, affordability remains constrained, prices are still elevated, and consumer sentiment is still mixed.

The good news is that inflation seems to have peaked and appears to be heading in the right direction. In addition, the employment rate is still extremely low so from an economy standpoint, things look pretty good. From a housing market perspective, inventory is low and we don’t know what will be the catalyst that will lead to more inventory coming online. On the demand side, buyer demand has been comparatively low all year, and if rates remain above 7%, we anticipate that it may decline even further in Q3 and Q4.

One thing that we have noticed this year is that most home buyers are not looking to do big renovations. So homes and apartments that are move-in ready have continued to do well, while homes that need work have taken longer and/or been more challenging to get sold. If you’re a homeowner that is thinking of selling this year, our advice is to do your best to make the house as move-in ready as possible, otherwise you will just need to price more aggressively in order to offer more value for the price. If you’re a home buyer, then our advice is to not be afraid to buy a home that needs some work. These are the properties that present the biggest opportunities in our opinion.

One important question that you can ask when you see a fixer upper is, “How much will this house be worth once renovated?” and you can even ask to see comps for proof. If the spread between purchase price and ARV (After Repair Value) is large enough, then you could be looking at a great opportunity to build your wealth and make money going in. This is how real estate investors do it by the way 🙂 Keep in mind that there are renovation loans and rehab programs you can take advantage of which can help you finance repairs, renovations, violation removals, etc. And the good news is that you can use them no matter how small or large the project is. We’re passed the peak home buying season for the year so let’s see how the next two quarters play out.

We’ll continue to watch the market and keep you posted on our insights.

Our Listings

Month’s Supply

What is Month’s Supply? Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. For example, if there are 50 homes on the market and 10 homes selling each month, there is a 5 month supply of homes for sale.

Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.

Month’s Supply in Queens NY

………. # Homes currently Available for Sale: 4,899 (was 4,815 last quarter)

………. Average # of Homes selling each month: 645 (was 677 last quarter)

………. Month’s Supply: 7.1 (was 5.6 last quarter)

Closed Home Sales

The One Key MLS reported a total of 1,990 closed home sales during the 2nd quarter of 2023. This was UP 5.9% from the previous quarter and DOWN 31.6% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 30%, Condo sales were DOWN 49.2%, and Coop sales were DOWN 27% compared to the same quarter last year.

Over the last 12 months, home sales are DOWN 24.4%.

Pending Home Sales

As for pending home sales, the One Key MLS reported a total of 2,612 pending homes sales during the 2nd quarter of 2023. This was UP 18.4% from the previous quarter and DOWN 8.2% compared to the same quarter of last year. Specifically, residential pending sales were DOWN 29.2%, condo pending sales were DOWN 14%, and coop pending sales were DOWN 4.5%.

Median Home Price

As for Home Prices, the One Key MLS reported a median home price in Queens of $649,750, that’s UP 1.8% from the previous quarter and DOWN 2.0% compared to the same quarter of last year. Specifically, the median home price for residential homes was DOWN 4.4%, median home price for condos was DOWN 6.8%, and the median price for coops was flat compared to the same quarter last year.

Over the last 12 months, the median home price in Queens is DOWN 2.0%.

Mortgage Rates

Mortgage Industry Insights

Source: mortgagenewsdaily.com

“The Fed hiked its policy rate yesterday and now today, mortgage rates jumped quite a bit higher.  While there are already headlines drawing a connection between these two events, they are actually unrelated.  As we discussed yesterday, the Fed’s rate hike was already baked into yesterday’s rate l… (continue reading)

Learn More from Mortgage News Daily

Housing Inventory

There is currently 7.6 month’s of inventory in Queens, this is UP from the 7.1 month’s supply we had last quarter, and UP from the 5.8 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 4,899 homes for sale in Queens. That’s UP from the 4,815 homes we had on the market in the previous quarter and DOWN from the 5,411 homes we had on the market at this time last year.

Queens Real Estate Market Report: Q2 2023, provided by the Queens Home Team at Keller Williams Realty Landmark II. Have a Question? Contact Us anytime.

>> Click Here to See all Queens Housing Market Reports dating back to 2012.

Good Reads & Listens

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NYC Rent Guidelines Board approves 3% rent increase

What’s a Bridge Loan?

Home buying could get even Harder this Year

Is Housing Booming or going through a Bust?

About Us

The Queens Home Team is a group of friendly, service driven real estate agents in Queens NY. Our team members are not only experts at what they do, but more importantly, they are driven by their desire to help people. The team approach is what truly separates us from the average Queens broker, because while most agents are one person doing several things, we have several agents doing one thing, and being great at it! This ensures expertise throughout all stages of the transaction and allows us to provide the superior level of service our clients deserve. We understand that real estate is a service industry, therefore we treat it as such. Rest assured that when you work with the Queens Home Team, you’ll be in good hands, with people who care 🙂

*The opinions expressed in This Queens Real Estate Market Report are intended to supplement opinions on real estate expressed by local and national media, local Queens real estate agents and other expert sources. You should not treat any opinion expressed on this report as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. The Queens Home Team at Keller Williams Realty Landmark II does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. The Queens Home Team will not be liable for any loss or damage caused by your reliance on information contained in this report.