This Month in Forest Hills Real Estate: March 2013

February 2013 Forest Hills Market Update

The Forest Hills housing market is showing some improvement. The main trend to call attention to is the tightening inventory. Home prices are still below year-ago levels, but housing demand has picked up, resulting in low levels of inventory in many areas of Forest Hills.

Tight inventory is a major factor in the market. Buyer traffic is continuing to pick up, while seller traffic is holding steady. Inventory is low for a number of reasons: Housing demand has picked up, banks have slowed the pace of foreclosures, and many homeowners who wish to sell their homes simply cannot because they do not have enough equity to make a down payment on their next home. However, as home prices continue to rise and more people can afford to sell their homes, inventory levels will increase.

The typical Forest Hills home is taking 3 days longer to sell, than it did a year ago. Now marks one of the most favorable times to buy or sell a home in Forest Hills. There is an urgency to buy now while mortgage rates are at record lows and before home prices increase more significantly.

Absorption Rate/Month’s Supply Time it would take to sell the current inventory at the current rate of sales:

• This Month - 10.2 months
• Last Month - 7.2 months
• Last Year – 9.9 months

Absorption Rate/Month’s Supply for Forest Hills Coops: 9 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 are still low, but have risen slightly this month to around 3.56%. Last month, NAR President Gary Thomas stated that even though interest rates should gradually rise as the year progresses, they are still expected to stay below 4% during the first half of the year.

Forest Hills NY Home Sales

Home sales this month decreased by 30.2% from last month to a current seasonally adjusted rate of 37 units, down 24.5% from year-ago levels. Residential 1, 2, and 3 family home sales decreased from 7 home sales in 2012 to 5 home sales in February 2013. Condo sales dropped from 5 condo sales in February 2012 to 2 sales in February 2013. Coop home sales also decreased from 37 units sold in February 2012, to 30 units in February 2013.

Total Number of Homes Sold: 37

• Residential Homes Sold: 5
• Condo Homes Sold: 2
• Co-Op Homes Sold: 30

Forest Hills NY Home Prices

 The current median home price rose this month to $300,000, and it is 4.5% below year-ago prices, marking February as the first month of year-over-year price decreases, which last occurred in August of last year (2012). This decrease in median home price can be directly attributed to the decrease in home sales. However, if home sales pick up, and with the low inventory levels that we’re experiencing, home prices can surely be expected to rise.Median Home Sale Price: $300,000

• Residential Median Sale Price: $637,000
• Condo Median Sale Price: $275,000
• Co-Op Median Sale Price: $237,500

Forest Hills NY Listing Inventory Current active listings on the market: 367

• 79 New Co-Ops hit the Market
• 2 New Condos hit the Market
• 11 New Residential Homes hit the Market

For more information about what’s going on in your neighborhood, contact George or Abigail Herrera of Keller Williams Realty Landmark.