Last Updated on January 24, 2023
Queens Real Estate Market Report: Q4 2022, 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/2023/01/Queens-Real-Estate-Market-Report_Q4-2022.pdf
Market Snapshot
Happy New Year from QHT! Hope you’ve been enjoying your start to the year. Fortunately here in NYC the weather hasn’t been too bad. A few bitter cold spells but nothing we can’t handle 🙂 As we started the year we were doing a lot of business planning and preparation for the coming 2023 housing market. There is a lot of concern and caution out there so now more than ever, its important for us to keep our fingers on the pulse of the market in order to guide our clients and readers properly.
In keeping with tradition, below is a market report for the last quarter of 2022 as well as some insights on what we are seeing as we kick off 2023. As you can imagine, heading into 2023 the market was pretty slow in terms of sales activity. Last year was driven by rapidly rising mortgage rates, recession fears, a plummeting stock market, high inflation, a hawkish Fed and several other factors. We typically see a slowdown during the holidays anyway, but all of these economic factors made the slowdown even more pronounced. The good news is that mortgage rates appear to have peaked in late October and since then, they have come down significantly.
The last quarter of the year was slow in terms of activity and demand, but it was also slow in terms of new listings hitting the market. Surprisingly, things were still moving in Q4, and that is likely due to the fact that inventory remained low all year. Mortgage rates were rising all year, at a pace we’ve never seen, and as they rose demand was definitely declining in real time. The interesting thing however, was that every time rates would drop, we would see a slight uptick in activity, signifying to us that demand is out there, but the buyers were waiting for prices and/or mortgage rates to drop. Looking back at the entire year, we see that the median home price in Queens still saw an increase in 2022, albeit a modest one of 3%.
As we head into 2023, the market is feeling stronger, mainly because for the last 8 weeks of 2022, mortgage rates were trending downward going from around 7.5% to around 6.5%, and the trend has continued into January. As you can imagine, that has led to an uptick in buyer activity. According to a report from CNBC, mortgage applications actually shot up 28% in the first week of January, a sign that there is pent up demand out there and buyers may just be waiting for a reason to jump back in. Couple this with continuously low inventory levels and you get a market that in terms of sentiment feels like a buyer’s market, but in actuality is still pretty balanced. This is proven to be the case given the 5.6 month’s supply that we had to close out the year.
All in all, the Queens real estate market is in for another year of uncertainty. A lot of speculation and predictions out there, and we aren’t confident enough to make one of our own. One thing we do know is that unless inventory grows significantly, it’s hard to imagine a scenario where prices come down dramatically, if at all. Something else to keep in mind is that the real estate market cycles from buyer’s market > seller’s market > back to buyer’s market, etc. and we’ve been in a seller’s market since 2012. Based on historical patterns, we are long overdue for a market shift, the question is what will cause the next shift? How our economy performs over the next quarter or two will tell us a lot and that will hopefully give us more clarity as to what kind of market we can expect moving forward.
We’ll see how it all plays out and keep you posted.
QHT Listings for Sale
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: 4,660 (was 5,551 last quarter)
………. Average # of Homes selling each month: 828 (was 945 last quarter)
………. Month’s Supply: 5.6 (was 5.9 last quarter)
Queens Closed Home Sales
The One Key MLS reported a total of 2,171 closed home sales during the 4th quarter of 2022. This was DOWN 22.4% from the previous quarter and 27.3% compared to the same quarter last year. Specifically, sales for Residential homes were DOWN 31.1%, Condo sales were DOWN 35.9%, and Coop sales were DOWN 16.7% compared to the same quarter last year.
Over the last 12 months, closed home sales are UP 3.1%.
Queens Pending Home Sales
As for pending home sales, the One Key MLS reported a total of 1,978 pending homes sales during the 4th quarter of 2022. This was DOWN 16.1% from the previous quarter and DOWN 30.5% compared to the same quarter of last year. Residential pending sales were DOWN 34.5%, condo pending sales were DOWN 51%, and coop pending sales were DOWN 13.5%.
Queens Home Prices
At the end of Q4 2022, the median home price in Queens was $682,500, that’s UP 0.3% from the previous quarter, and DOWN 0.7% compared to the same quarter of last year. Specifically, the median home price for residential homes was UP 6.4%, median home price for condos was DOWN 5.4%, and the median price for coops was DOWN 2.9% compared to the same quarter last year.
Over the last 12 months, median home price in Queens is up 3%.
Need Help? Contact Us.
Mortgage Rates in NYC
Mortgage Industry Insights
Source: Bankrate.com
“The benchmark fixed rate on 30-year mortgages now sits at 6.43 percent, down from last month’s levels, according to Bankrate’s national survey of large lenders. The Federal Reserve raised rates at its December meeting, the seventh straight increase in 2022 — although this time by just half a point.
However, inflation finally is slowing, and mortgage rates could continue to come down. “I think we could be surprised at how much mortgage rates pull back this year,” says Greg McBride, CFA, Bankrate’s chief financial analyst.
Federal policy doesn’t directly impact rates on fixed-mortgages, but the central bank has some sway with 10-year Treasury yields, which do drive fixed mortgage movement. The Fed’s actions affect adjustable-rate mortgages (ARMs) and home equity products, however. Each time the central bank raises its key rate, variable home loan rates move in tandem.
Some analysts believe fixed mortgage rates might dip back into the 5 percent range in 2023. Learn what the experts predict in Bankrate’s forecast.
Inventory
There is currently 5.6 month’s of inventory in Queens, this is DOWN from the 5.9 month’s supply we had last quarter, and UP from the 4.5 month’s supply we had in the same quarter of last year. As for active listings, currently there are a total of 4,660 homes for sale in Queens. That’s DOWN from the 5,551 homes we had on the market in the previous quarter and UP from the 4,427 homes we had on the market at this time last year.
Queens Real Estate Market Report: Q4 2022, 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
Hochul’s Housing Plan Draws Praise, Skepticism
2023 State of the State Address Summary
NYC’s plan to convert office space into housing could create 20,000 homes
2023 NYC real estate forecast: Buyers make a move, sellers return, renters get some breathing room
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.
There is currently 5.6 months of supply in Queens NY.
Based on the current month’s supply of housing inventory, the Queens real estate market would currently be considered a “Balanced Market”.
The most ideal time to sell a home is when the market is either balanced, or favoring sellers (i.e. Sellers Market). Given the current months supply of 5.6 months, our market would be considered a Balanced Market. Therefore, we would say that conditions are favorable for selling. With that said, timing the market is nearly impossible so the best approach is to sell when the time is right for you. People buy and sell in every market so more important than anything is selling when the time is right for you and your family.
The most ideal time to buy a home is when the market is either balanced, or favoring buyers (i.e. Buyers Market). Given the current months supply of 5.6 months, our market would be considered a Balanced Market. Therefore, we would say that conditions are favorable for buying. With that said, when it comes to buying real estate its important to remember the old adage, The best time to buy real estate is 20 years ago, the next best time is now. People buy and sell in every market, and over the long term (10, 20, 30 years), home values generally appreciate. Therefore, if you are in a position to buy and have saved up for your down payment, our suggestion is always to get out there and see if you can find a good house that fits your needs.
The median price for a residential 1-3 family home in Queens NY is currently $920K. Median price for a condo in Queens is currently $550K. And the median price for a coop in Queens is currently $310K.
Average days on market for Queens NY is currently 113 days.
In general, if a property is priced right, a seller should be able to find a buyer within 30 – 60 days. As for contract-to-close, from the date of contract signing, it typically takes about 60-90 days to close on a residential home or condo in which the buyer is obtaining a mortgage. If it is a cash deal, then the typical timeline would be one month less (i.e. 30-60 days). It is very rare for homes and condos to close in less than 30 days unless you are selling to an investor, and when that is the case, you are usually selling for WAY below market value. As for coops, the typical timeline to close, from contract signing, is 90-120 days. If it is a cash deal, then the timeline would be one month less (i.e. 60-90 days).
Your overall selling timeline will depend on the agent you choose and how quickly they can get you an acceptable offer. Keep in mind that there are several issues that can cause delays to your transaction so it’s important that you hire an agent who has sold a lot of properties and knows how to anticipate and resolve issues quickly.
Click Here to learn more about the timeline to sell in Queens.
One of the main reasons why we Queens homeowners contact us is to find out how much their property is worth. There are several reasons why a homeowner would want to know their home’s value but no matter the reason, we are happy to oblige.
Some of the most common reasons for needing a home valuation include things like future plans to sell, probate & administration proceedings, divorces, bankruptcies, and of course plain curiosity. Many times we speak with homeowners and they have no plans of selling their home, but they would like to get an idea of what the property is worth.
Now, the way we typically answer the question, “How much is my property worth?” is by offering a Free Home Valuation. What our team does is offer two types of home valuations, one is a price range valuation (if we cannot see the property in person), and the other one is a more specific home valuation which requires us to see the property in person to assess the size, layout, condition, etc.
Price Range Valuation
A price range valuation is just what it sounds like, a price range for the value of your home based on the recent comps as well as our experience in your neighborhood. Price range valuations are good for out-of-state owners, landlords who don’t want to disturb tenants, or someone who just wants to get an idea (i.e. ballpark figure) of what their house is worth at any given time.
Most agents will not offer a price range valuation because in our industry agents are trained to schedule an appointment before sharing any price or value information. On our team however, we believe in full transparency and quality information so that people can make good decisions. As a result, we have no problem offering free price range valuations and we actually send a lot of them to Queens homeowners.
Something important to note regarding price range valuations is that the range (or spread) will largely depend on the size and type of property you own. For example, the price range offered for a 1 bedroom coop may be $50K (+/-) while the price range for a 3 family may be $200K (+/-).
The only downside to a price range valuation is that you won’t have a very specific value, but if all you want is an idea of, then this can be helpful.
Comprehensive Valuation
Now, if you want to get a really good idea or more specific valuation for your property, then that would require a property tour. What we call this is a home valuation or broker price opinion. With this type of valuation, we would come in to see the property in person so that we can assess the size, layout, condition, internal obsolescence, external obsolescence, etc. The walk through usually takes 10-15 minutes, and after seeing it, we usually sit down with the homeowner to go over everything together. This allows us to not only provide the seller with the comps, but it also allows us to explain how we come to the valuation we are providing. If a homeowner cannot meet with is for some reason, then we will typically send the analysis and valuation by email.
Broker Price Opinion Vs Independent Appraisal
In our opinion, the best way to understand the value of your property is to sit down with a local agent who can go through the comps with you and explain how they draw their estimated valuation of your property. This is different from an appraisal because when you order an independent appraisal, the appraiser will come by to see your property, then they will create a written report for you and send it to you a few days later for review. Appraisers will typically include a handful of comps in the report, and they don’t typically sit with the homeowners to explain how they came up with the appraised price that they provided. It’s very common for homeowners to disagree with an appraisal because they don’t understand the methodology, or because the appraiser may not know the area well.
The way our team likes to provide home valuations is by looking at the property in person, then sitting down with the homeowner(s) to go through all of the data (closed, pending, available, month’s supply, etc) together and ultimately offer our professional opinion of the value. The value we give is never a specific number because true “market value” is what a buyer is willing to pay for it, and without being on the market, it is impossible for us to know that. Instead, what we provide is a realistic idea of where we believe offers would come in if we were to list the property at that time. We are able to do this based on our recent sales and experience selling properties in that area.
In our experience, experienced agent valuations tend to be more accurate than appraisals because in addition to the sales data which we both have access to, a local agent can also apply their recent sales experience, knowledge of the area, and local market trends to get a better idea of the property’s current value.
If you would like to get an even better idea of your property’s current value, have 3-4 agents give you their valuation. After hearing and seeing 3-4 valuations, the value should be pretty clear as long as you are realistic and not just looking to hear the highest price 🙂
So, to answer the age old question, “How much is my house worth?”, the answer is that it depends, but if you live in Queens we would be happy to offer you a free price range valuation or a free comprehensive home valuation.
If you have any questions regarding your home’s value, or if you would like to know how much your property is worth here in Queens NY, feel free to reach out anytime.