January 2013 Forest Hills Market Update
The Forest Hills housing market continues to recover as a result of existing-home sales improving with low inventory supply pushing home prices upward. Momentum continues to build in the housing market from growing jobs and a bursting out of household formation. With lower rental vacancy rates and rising rents, combined with historically favorable affordability conditions, more people are buying homes in Forest Hills.
There are good signs that 2013 will be a year of recovery for the Forest Hills housing market. 2012 was a good year that ended in a positive territory, and if 2013 is anything like 2012, it could mean we are headed for a strong rebound. There is an urgency to buy now as home prices continue to increase and mortgage rates are at historic lows.
While home sales are increasing, median home sale prices have remained relatively stable. However, with the decrease in inventory/month’s supply, and the increase in home sales, a modest increase in home prices could be coming soon. The decrease in inventory is a good sign for home sellers because there is less competition on the market.
Absorbtion Rate/Month’s Supply
Time it would take to sell the current inventory at the current rate of sales:
- This Month – 8.3 months
- Last Month – 14.6 months
- Last Year – 12.3 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
This month mortgage rates are at or around 3.37%, still hovering near record lows. In terms of the monthly payment on a 30-year fixed rate mortgage, a 1% increase in interest rate is the equivalent to a 10% increase in price. Low rates and a rebounding market have put buyers in a sweet spot, fueling urgency to buy now.
Forest Hills NY Home Sales
Home sales this month increased 22.5% from last year and 44.1% from last month to a seasonally adjusted rate of 49 units, the highest level since October of 2012. The Home Sale trajectory of 2012 saw a low point of 29 units in April 2012 and peaked at 52 units in July & October 2012. All in all, there were 6 months of year-over-year increases in 2012 with 5 of them coming in the second half of the year, a sign of the market stability that was apparent in 2012.
Total Number of Homes Sold: 49
- Residential Homes Sold: 7
- Condo Homes Sold: 2
- Co-Op Homes Sold: 40
Forest Hills NY Home PricesThe current median home price fell to $220,000, a decrease of 22.4% from the previous month and 20.7% from last year. December marked the sixth month of year-over-year price decreases, while the other six months saw year-over-year price gains, another sign of the market stability in 2012. The increase in number of home sales in tandem with the shrinking inventory should give us positive momentum in the first quarter of 2013.
Median Sale Price: $220,000
- Residential Median Sale Price: $718,888
- Condo Median Sale Price: $379,000
- Co-Op Median Sale Price: $215,000
Forest Hills NY Pending Home Sales
Pending Home sales in December increased 70.6% from last year and 87.1% from last month to a rate of 58 units. This large increase in year-over-year pending home sales is just another sign that Forest Hills home sales are in fact increasing and should continue to do so into the first quarter of 2013. All in all, in 2012 there were 8 months of year-over-year pending home sale increases, a strong sign of the buyer confidence experienced in 2012, a trend that should continue in 2013.
Total Number of Pending Home Sales: 58
- Residential Pending Sales: 8
- Condo Pending Sales: 4
- Co-Op Pending Sales: 50
Forest Hills NY Listing Inventory
Current active listings on the market: 351
- 60 New Co-Ops hit the market
- 2 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