Here is a look back at what is happening in the Forest Hills real estate market. Forest Hills has always been a fairly distinct micro-market closely hugging public transportation alternatives. Even within Forest Hills, there is the house market (detached and attached, single family and muli-family) as well as Coops and Condos. The bulk of sales are in Coops and Condos as there are far more Coops than Condos or even houses. There is always 150 or more 1 bedroom or studio Coop apartments for sale at any point in time.
I will take a look at the house market first. Over the last 6 months, an average of about 12 houses have sold per month and the Days on Market has been relatively short, 79 total days. Prices, not shown on the chart below, are up actually up a bit while the number of sales are actually significantly down. There is an undersupply of houses in the area; which has led to faster sales and price increases despite the downturn in transactions. Should there be a dramatic change in interest rates or in the supply, the market could change quickly. There are many potential sellers who have mortgage rates below 4% for whom selling doesn’t really make financial sense.
The chart below shows some of the actual statistics.
The Coop and Condo market is much different. I have them lumped together as there aren’t enough condo sales alone to have a statistically significant sample; but the Condo market is actually different than the Coop market. Similar size Condos sell for roughly 30% more than Coops but are also newer and have more amenities and many have parking garages.
While prices overall have held steady, that is propped up by a small number of luxury condos selling for $2 and $3 million+. The days on market is rather long at 222 days and an average of 76 units sell each month. This overall market is in an Undersupply situation as well. The Austin Condominium has dramatically increased the top end of the Condo market and Coops in Forest Hills Gardens continue to hold and increase in value despite their general lack of amenities, other than location and greeenspace.
Based on this, I would expect prices to continue increasing somewhat and undersupply to continue. A large interest rate change could change that. If you do see a house you like, particularly if it is renovated, you will need to move quickly and be aggressive on your bidding price.
If you are looking for a Coop, there is more of a selection and you don’t need to be as aggressive but must keep in mind that all Coop sales must be approved by the Coop Board and they do not like approving low prices. Condos, especially new ones, do tend to sell quickly and appreciate in value.
If you have any questions, please call directly.
Data source: Corcoran Quick Stats
