February 2013 Forest Hills Market Update
The conclusion of 2012 paints a promising picture for 2013 and the Forest Hills housing market. Falling inventory levels coupled with record-low mortgage rates, which drive high levels of demand, continue to drive home prices upward. This pent-up demand is sustaining the market and record-low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales.
Anticipated job creation and household formation will continue to fuel confidence growth in the Forest Hills housing market. We expect both sales and prices to once again be higher in 2013. The biggest impact of tight inventory is upward pressure on home prices, but prices are still affordable in most of the neighborhood. While mortgage rates are expected to stay low for the first half of the year, and home prices still remain affordable for most, there is an urgency to buy now, before home prices increase more significantly.
Absorbtion Rate/Month’s Supply
Time it would take to sell the current inventory at the current rate of sales:
- This Month - 7.2 months
- Last Month - 8.3 months
- Last Year – 14.7 months
*When inventory supply is above 6 months the market is said to favor buyers, and when inventory supply is below 6 months the market is said to favor sellers.
Forest Hills NY Interest Rates
Mortgage rates hit a record low of 3.35% in January, and are currently at or around 3.38%. NAR President Gary Thomas states that affordability conditions will remain fairly stable, “Although mortgage interest rates should gradually rise as the year progresses, they’re expected to stay below 4% during the first half of the year.” With the uncertainty of when interest rates might rise, there is a sense of urgency to buy now.
Forest Hills NY Home Sales
Home sales this month were up 6% from last month and 65.6% from year-ago levels to a seasonally adjusted rate of 53 units. There were 4 Residential One-to-Three Family Home sales, 3 Condo Home sales, and 46 Coop Home sales in January. The most significant increase in home sales were in the Coop segment, where there were only 24 Coops sold last year, compared to the 46 Coops sold this January. This increase in Home Sales, coupled with the shrinking inventory, is balancing our market. At this rate, we may see a favorable sellers market in the coming months.
Total Number of Homes Sold: 53
- Residential Homes Sold: 4
- Condo Homes Sold: 3
- Co-Op Homes Sold: 46
Forest Hills NY Home Prices
The current median home price rose slightly in January to $257,500, which is 4.1% above this time last year. This is a good sign to start the new year, and with increased home sales and decreased inventory, year-over-year price gains may become a trend in the months to come. Residential 1-3 Family Home prices were down 10.6% from year-ago levels to $696,000; Condo Home prices were up 14.6% from year-ago levels to $440,000; And Coop Home prices were up 9.6% from year-ago levels to $211,000.
Median Home Sale Price: $227,500
- Residential Median Sale Price: $696,000
- Condo Median Sale Price: $440,000
- Co-Op Median Sale Price: $227,500
Forest Hills NY Pending Home Sales
Pending Home sales this month were down 14.3% from last month and up 58.8% from year-ago levels to a rate of 54 units. Residential Pending Home sales were down 20% from year-ago levels to a rate of 4 units; Condo Pending Home sales were down 75% from year-ago levels to a rate of 1 unit; And Coop Pending Home Sales were up 92% from year-ago levels to a rate of 48 units.
Total Number of Pending Home Sales: 54
- Residential Pending Sales: 5
- Condo Pending Sales: 1
- Co-Op Pending Sales: 48
Forest Hills NY Listing Inventory
Current active listings on the market: 354
- 77 New Co-Ops hit the market
- 4 New Condos
- 8 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
BUY: www.ExclusiveQueensHomes.com | SELL: www.QueensHomeSelling.com