Queens homebuyers are likely to pay much more for new abodes as prices continue to rise.
The median price of a home in Queens is 9.3 percent higher this May when compared to May of 2014, according to a report by Keller Williams Realty Landmark II based on data from the Long Island Board of Realtors. The median sales price reached $404,375 in May, which is up 1.2 percent from April.
Condo prices in particular are moving at a scary pace, as they rose roughly 20 percent in a year, the data reveals. Median condo prices were at $408,000 last year in May, but have since risen to $490,000, according to the report.
The increase is prices is a continuing trend caused by the rise in demand for homes while supply of available homes remains relatively low.
The inventory of available homes in Queens is nearly 4,400, which is down 25 percent from the same time last year. At the same time homes are in high demand now because interest rates for mortgages continue to remain under 4 percent. Historically interest rates have been at an average of 8.9 percent.
In a sign of change the inventory level actually rose slightly in May when compared to April, but not enough to impact prices yet.
“As interest rates remain low, it’s likely that demand will remain strong as we move into the summer and peak season for the Queens real estate market,” the report said. “Overall, we’re still experiencing the tight inventory levels, but now that June has hit, we are finally seen more homes hit the market.”