A lack of housing supply in Queens is driving prices upward while pushing inventory down, a trend that is likely to continue, according to the latest report from Douglas Elliman Real Estate.
The average price of all homes sold in Queens in the second quarter of 2013 was $441,417, 10.6 percent higher than it was in the second quarter of 2012, according to the report, which is prepared by the Miller Samuel appraisal firm and is considered an accurate barometer of the real estate market. The median sales price rose 9.9 percent to $390,000 over the same period.
Meanwhile the number of sales also increased, rising 8.1 percent to 2,493, while the number of homes up for sale dropped 28.9 percent to 6,496.
“The combination of falling supply and rising demand resulted in a six-year record low absorption rate or market pace of 7.5 months,” the report said, “measured by the number of months it took to sell all inventory at the current rate of sales. The lack of supply is beginning to reveal upward price pressure in the market.”
How much sales and prices rose varied greatly among different parts of the borough and different types of homes. The median sales price of one- to three-family homes rose 16.3 percent to $500,000, for example, while the median cost of co-ops rose only 4.3 percent to $195,000.
The one area that was a major exception to the overall trend was Rockaway, due to the impact of last fall’s Hurricane Sandy. The number of home sales on the peninsula plummeted 63.2 percent to 32, with the median price declining 3.9 percent to $372,000.
South Queens, which also suffered from the storm, saw sales fall 8 percent to 538, but the median sales price still rose 3 percent to $340,000.
The full report is available through the “market reports” link at elliman.com.