Queens New York Home Prices Slip as Sales Surged in Q2

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According to a new report released this week by Prudential Douglas Elliman, Queens' residential listing inventory slipped as number of sales rose sharply.

There were 13,254 listings in Queens at the end of the second quarter, down 4.9% from 13,938 listings during the same period last year, but up 8.9% from 12,170 listings in the prior quarter. Listing inventory totals were consistent with the 5-year quarterly average of 12,931. Consistent with the decline in listing inventory was the sharp increase in the number of sales. There were 3,972 sales in the second quarter, 86.6% more than the 2,129 sales in the prior year quarter and 27.6% more than the 3,113 sales in the prior quarter. The surge in activity was expected as consumers took advantage of the federal tax credit for first-time buyers and existing homeowners, as well as improved affordability from lower prices and record-low mortgage rates. As a result of the decline in listing inventory and the increase in the number of sales, the monthly absorption rate--the number of months to sell existing listing inventory at the current pace of sales--fell by nearly half to 10 months, from 19.6 months in the second quarter of 2009. This is consistent with the 10.2 month average of the past five years.

Additionally, price indicators slip due to a skew caused by a surge in condo sales. The median sales price of a Queens property was $335,000 down 7.5% from $362,000 in the prior year quarter and down 2.9% from $345,000 in the prior quarter. Average sales price followed the same pattern falling 3.6% to $382,518 from $396,756 in the prior year quarter and down 2.3% from $391,444 in the prior quarter. The decline in price indicators was attributable to a shift in mix this quarter. Condo sales accounted for 23.2% of all borough sales, nearly double their 12.7% average market share of the past three years. The lower price levels and larger market share of the condo market skewed the overall price indicators downward. The change in median sales price for the top four quintiles posted single digit year-over-year declines. The median sales price for the bottom quintile, or bottom 20% of the market, was $160,000, 1.3% higher than the $157,914 median sales price of the same period last year.

The listing discount--the percentage difference between the listing price at the time of contract and the contract price--slipped to 6.4% from 7.7% in the prior year quarter and up nominally from 6.2% in the prior quarter. It took 10 days less the sell a property in the second quarter compared to the same period a year ago. Days on market were 97 days, down from 107 days in the prior year quarter and down from 100 days in the prior quarter.

Key Prudential Douglas Elliman report highlights include:

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Condo Market - Surge in number of sales as prices continued to fall

Price indicators declined as sales surged

The number of sales jumped to 920 units, more than four times the number sold in the same period a year ago and nearly double the 490 units sold in the prior quarter. The three price indicators dropped sharply over the same period. The median sales price was $278,000 in the second quarter, down 28.1% from $386,437 in the prior year quarter and down 8.7% from $304,627 in the prior quarter. The pronounced decline was attributable to the new development market share shift to 22.6% of sales from 49.3% of all condo sales in the prior year quarter. This shift was compounded by the two-to-one differential in price indicators for each market segment. The new development and re-sale median sales prices for the second quarter were $415,740 and $245,000 respectively.

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Co-Op Market - Number of sales jumped

Price indicators continued to slip

The median sales price of a Queens co-op was $193,000, down 5.3% from $203,809 in the same period last year and down 1% from $195,000 in the prior quarter. Average sales price followed the same pattern, falling 5% to $208,319 from $219,332 in the prior year quarter and 1% below $210,341 in the prior quarter. Market share of co-op sales compared to all sales slipped to 20.3% from 28.9% in the prior year quarter. However sales rose 31.1% to 806 apartments from 615 sales in the same period last year and increased 8.9% from 740 sales in the prior quarter.

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1-3 Family Market - Number of sales surged

Price indicators showed signs of stabilization

The median sales price was $438,617 in the second quarter, down 1.4% from $445,000 in the same period last year and down nominally from $440,000 in the prior quarter. Average sales price showed a similar pattern. The number of sales has continued to trend higher over the past year. There were 2,246 sales in the second quarter, 71.1% more than 1,313 in the same period last year and 19.3% more than the prior quarter. The 1-3 family market remains the largest segment at 56.5% of all borough sales, but lost market share from the 61.7% last year during the same period.

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Luxury Market - Price indicators slipped

Dollar volume remained at highest level in two years

The median sales price of a Queens luxury property--defined as the highest ten percent of all sales--slipped 2.8% to $778,000 from $800,000 in the prior year quarter and dropped 5.1% from $820,000 in the prior quarter. Average sales price remained essentially unchanged at $859,754 compared to the prior year quarter and slipped 2.4% from $881,280 in the prior quarter. The luxury market accounted for 22.5% of total dollar volume, up from 21.7% in the prior year quarter and unchanged from the prior quarter, the highest market share in more than two years.

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Central Market - Largest increase in number of sales

Largest decline in median sales price

Median sales price was $283,210 in the second quarter, down 14.2% from $329,950 in the same period last year, but up 1.1% from $280,000 in the prior quarter. Average sales price slipped 5% to $351,627 from $370,209 in the prior year quarter and essentially unchanged from the prior quarter. The number of sales more than doubled to 920 from 402 in the second quarter of 2009.

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South Market - Price indicators declined

Number of sales surged

There were 1,001 sales in the second quarter, up 80.7% from 554 sales in the same period last year and up 19.5% from 838 in the prior quarter. Median sales price was $325,000, down 9.7% from $360,000 in the same period last year and down 1.1% from $328,496. The south market accounted for 25.2% of sales down from 26% during the same period a year ago.

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West Market - Number of sales surged

Price indicators declined

Median sales price was $375,000 in the second quarter down 3.5% from the prior year quarter at $388,500 and down 8.5% from $410,000 in the prior quarter. Average sales price was down nominally to $391,498 from $393,200 during the same period last year and down 7.8% from $424,393 in the prior quarter. The number of sales jumped 76.2% to 599 from 340 in the prior year quarter. The market share for this region was 15.1%, down from 16% during the prior year quarter.

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Northeast Market - Number of sales up sharply

Only region to see increase in both price indicators

The median sales price was $368,534 in the second quarter, up 3% from $357,770, but 7.9% below $400,000 in the prior quarter. Average sales price followed the same pattern, rising 0.7% to $427,487 from $424,658, but fell 5.3% from $451,321 in the prior quarter. The number of sales surged 93.3% to 1,046 from 541 in the prior year quarter, accounting for 26.3% of all borough sales.

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Northwest Market - Number of sales rose sharply

Price indicators mixed

The median sales price was $455,692 in the second quarter down 5.3% from $481,325 in the prior year quarter, but up 6.4% from $428,162 in the prior quarter. Average sales price was $501,234, 4.5% higher than $479,541 in the prior year quarter and 6.2% above $471,908 in the prior quarter. The average sales price for condo new development sales increased 1.8% to $599,297 from the prior year quarter and condo re-sales increased 9.2% to $453,317 over the same period. Price per square foot for new development sales averaged $581 in the second quarter while re-sales averaged $246, but this includes 1-3 family houses and coop apartments.

Market share for re-sales rose as number of sales jumped

Re-sale market share expanded to 67.2% of all sales in the region, up from 63% in the prior year quarter while new development market share slipped to 32.8% from 37% over the same period. There were 262 total sales, 61.7% more than the 162 sales in the prior year quarter and up 31.7% from the 199 sales in the prior quarter. The northwest region accounted for 6.6% of all borough sales, less than the 7.6% of all sales in the same period last year.

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Rockaway Market - Number of sales rose

Price indicators dropped

There were 144 sales in the second quarter, 10.8% more than 130 in the prior year quarter and 35.8% more than 106 in the prior quarter. Sales volume in this region tends to be volatile and accounted for 3.6% of all borough sales. The median sales price fell 23.1% to $300,291 from $390,322 in the prior year quarter, the largest decline in all regions and fell 3.1% from $310,000 in the prior quarter.

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