As 2024 is about to come to a close, so many people are wondering what does 2025 hold for real estate in this area?
First, let’s take a look back at 2024. No surprise, it was not a great year in Forest Hills. Total sales were down 66% over the prior year while the average selling price was $1,319,695, +12%, and the median price (half sold for more, half sold for less) was $1,200,000, +7% over the prior year.
There are currently only 47 houses listed (this excludes Coops and Condos), or 4.4 months of supply, leaving us in an “Undersupply” situation.
So why would there be an “undersupply” situation when prices are up 12%? The short answer is that the vast majority of current mortgage holders have a rate of less than 4% so they are staying in their homes as they would have to pay around 7% for a new mortgage if they were to move. So they are delaying the natural cycle of resale and staying put. Most of the listings that are on the market are due to downsizing, retirement, moving out of state or job change; very little movement withing the Forest Hills area that traditionally has driven the market. Here is a chart that shows some of the key statistics for the last 12 months, houses only, excludes Coops and Condos. Source: QuickStats by Corcoran.
It is expected, but by no means assured, that interest rates will fall in 2025. How far? Impossible to know. Should interest rates get down near to historical norms (mid 5%’s), I would expect more listings to pop up and more buyers get back into the market. Many buyers stopped looking due to higher rates in the last 2 years but still want a new home.
If you are thinking about selling, you can be assured that there are still buyers in the market that will ensure your selling price will be attractive. The average home sale in Forest Hills has increased over 80% since 2010 as a side note, but are quite elevated for central Queens.
Call me if you would like to discuss.
