Queens Housing Market Shifts In Wake Of Amazon HQ2 Announcement
New records achieved for median and average sale prices
QUEENS, N.Y., Jan. 10, 2019 /PRNewswire/ -- Stribling & Associates, a leading New York residential brokerage, today releases the fourth quarter Queens Market Report. The report is the only to cover inventory, reported contracts and sales across the entire borough. Like Manhattan and Brooklyn, Queens recorded a decline in the number of sales as the number of active listings increased. However, the borough managed to record both median and average price increases.
"Queens is one of the most diverse boroughs in the city, in terms of what drives prices," said Garrett Derderian, Director of Data & Reporting at Stribling. "Like Brooklyn, price increases for single and multi-family homes in the far-reaching markets drove overall price growth." Indeed, Southeastern Queens recorded a median price increase of 10%, and average increase of 11%. Southwestern Queens had equally impressive gains, with its median price up 9% and average up 12%."
"We continue to see a spillover effect from Brooklyn, as purchasers get priced out of that borough," Derderian stated. "We expect growth in those markets to continue at the steady pace it has been, notwithstanding some major shift in the market at-large."
Northwestern Queens, for example, saw an immediate shift with the recent announcement that tech giant Amazon selected the neighborhood for half of its HQ2. Prior to the announcement, there were concerns over whether demand would keep pace with the thousands of new units coming to market. However, once Amazon made the official announcement, those concerns faded quickly.
"Long Island City shifted from a buyer's market to a seller's market in the blink of an eye," said Patrick W. Smith, Stribling's Long Island City specialist. "The Amazon effect was immediate and has boosted interest in the area exponentially. Sellers no longer feel like they have to sell at a discount."
To be sure, Northwestern Queens saw the greatest contract price increases: The median jumped 14%, the average surged 12%, and the average price-per-foot was up 9%. Derderian added, "While we still have to wait to see what the final sales prices are, it is a promising sign for the area, especially as the rest of the city is in a 'reset mode' regarding pricing."
Properties in Queens spent an average of 118 days on the market in the fourth quarter, slightly higher than the 116 reported in Brooklyn. This was also the highest number of sales in a fourth quarter above $500K, and the highest percentage of sales above $1.5M.
"What we are seeing, especially in the Northwestern submarket, are some record or near-record setting transactions. This is a relatively new phenomenon for Queens but mirrors the heightened activity in the super-prime markets of Manhattan and Brooklyn, although at a lower price point," Derderian emphasized. Still, he advised these newly contracted sales are indeed a high price-point for Queens.
Looking ahead, Derderian offered the following: "We expect growth in all Queens submarkets to continue, although rising interest rates and affordability do present a challenge to that growth. Still, the borough offers many conveniences at a lower price point than Manhattan or Brooklyn, and along with the Amazon announcement, Queens is poised for a promising 2019."
Highlights from Stribling & Associates Q4 Queens Market Report:
- Median sales price was $598,781, up 4% year-over-year (record)
- Average sales price was $675,183, up 5% year-over-year (record)
- Average price per square foot was $573, down 9% year-over-year
- Average days on market was 118, up from 111 in Q3
- There are 7.0 months of supply, up from 6.9 one year ago
Recorded Sales:
- There were 2,801 recorded sales to date, 5% less than one year ago
- Condo units saw an average PPSF of $944
- Houses and townhouses made up 65% of closings
- Co-op units had a median price of $340,000
- Properties sold between $500K-750K made up 31% of all closings
- 16% of closings were under $350K
- Northwestern Queens was the most expensive market and had 7% of recorded sales
- Southeastern and Southwestern Queens saw the greatest overall price increases
Contracts Signed:
- There was a 3% decrease in the number of reported contracts
- Houses and townhouses totaled 39% of contracts
- Condos recorded the highest average PPSF at $1,056
- Houses and townhouses had the highest median price at $858,000
- 16% of contracts were priced below $350K
- 20% of contracts were priced above $1M
- Central Queens had the most contracts, with 41%
- Northwestern Queens recorded the strongest price increases across all measures
Inventory:
- There were 2,700 active units in the borough, a 4% increase year-over-year
- Condos made up 24% of inventory
- Condo units had the highest average PPSF at $963
- Co-op units were the most affordable, with an average PPSF of $475
- 29% of inventory was priced above $1M
- 10% of inventory was priced below $350K
- 46% of inventory was priced between $500K-1M
- Northwestern Queens was the only submarket with a median and average price topping $1M
- Northwestern Queens was the only submarket with an average price-per-foot above $1,000
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout five locations across Manhattan, Brooklyn, and Long Island City. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.
Press Contact:
Ashley Murphy, Director of Public Relations
[email protected]
646-675-5068
SOURCE Stribling & Associates
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