Forest Hills NY Market Update
While the Forest Hills housing market is improving, but there are still signs that indicate we are not yet experiencing a full-force recovery. Credit standards are still tight. There are homeowners in some stage of foreclosure or default, while others still owe more than their homes are worth. As long as the economy continues to strengthen, the Forest Hills housing market will move toward the recovery we have been waiting for. However until the recovery is fully realized, we must remain aware that if the economy weakens again, the Forest Hills housing market could relapse.
The Federal Housing Administration announced that as a result of so many mortgage delinquencies, it might have to exhaust its reserves, which could result in the FHA needing to rely on taxpayer funds for the first time in its 78-year history. A government bailout of this magnitude could possibly weaken the economy, which could have an effect on the Forest Hills Market, but the U.S. Treasury will not make a decision until next February.
Considering the current, stringent mortgage underwriting standards, it’s important to know how credit scores work; improving your credit score will increase your likelihood of obtaining financing. Record-low mortgage interest rates shouldn’t be taken for granted. Buying a home in Forest Hills is extremely favorable for those that want to take advantage of interest rates while they are at historic lows.
Absorbtion Rate/Month’s Supply
Time it would take to sell the current inventory at the current rate of sales:
- This Month – 14.6 months
- Last Month – 8.9 months
- Last Year - 13.7 months
*6-7 Months is a sign of a stable real estate market. Under 6 months is considered a “Seller’s Market”, over 7 months is considered a “Buyer’s Market”.*
Forest Hills NY Interest Rates
Interest rates this month continue to decline at or around 3.34%, reaching record lows. NAR President Gary Thomas states, “Even with rising home prices, we’ll continue to see favorable housing affordability conditions over the coming year, but they won’t last forever. Inflationary pressures are expected to build during the next two years. As a result, mortgage interest rates will also rise with inflation. Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores, so they’ll be able to qualify for a mortgage while conditions are still favorable.”
Forest Hills NY Home Sales
Home sales were down 40.4% this month to a seasonally adjusted rate of 31 units, a 13.9% decrease from last year. Hurricane Sandy had some impact on sales figures this month. Home sales were trending up from July – October and most November transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in Forest Hills. We expect an impact on Queens’ home sales in the coming months from a pause and delay in storm-impacted regions which may affect Forest Hills home sales as well.
Total Number of Homes Sold: 31 - Down 40.4% from last month & Down 13.9% from last year.
- Residential Homes Sold: 5
- Condo Homes Sold: 1
- Co-Op Homes Sold: 25
The median home price rose in November to $287,000, compared to the previous month’s median price of $257,500. Home prices are up 31.7% from a year ago, which marks the second consecutive month and sixth month this year of year-over-year price gains, .Median Sale Price: $287,000 - Up 11.5% from last month & 31.7% from last year.
- Residential Median Sale Price: $675,000
- Condo Median Sale Price: $470,000
- Co-Op Median Sale Price: $267,000
Forest Hills NY Pending Home Sales
In November, pending home sales fell 45.3% from November’s 53 contracts written, due in large part to Hurricane Sandy. This is the first drop in year-over-year pending home sales since April of this year. We also expect an impact on Forest Hills pending home sales in the coming months from a pause and delay in storm-impacted regions.
Total Number of Pending Home Sales: 29 - Down 45.3% from last month & Down 29.3% from last year.
- Residential Pending Sales: 3
- Condo Pending Sales: 3
- Co-Op Pending Sales: 23
Forest Hills NY Listing Inventory
Current active listings on the market: 413
- 47 New Co-Ops hit the market
- 5 New Condos
- 7 New Residential Homes
For more information about what’s going on in your neighborhood, contact Abigail Herrera of Keller Williams Realty Landmark.
718-968-5538 | abigailSELLS@kw.com