After nearly 10 months of a pandemic and a very competitive and combative election, where do we stand with real estate in Forest Hills?
The answer is better than expected. According to figures compiled by Zillow, the average price in Forest Hills (zip code 11375) is actually up 6.3% over the same period last year (October 2020 vs .October 2019). See summary below.
How is that possible with all of the Covid restrictions, pandemic fears and election uncertainty? For one thing, customers with very good credit can get mortgages for less than 3.0%; rates rarely seen. The Fed has also signaled that rates they offer will be kept low until 2023 to help stimulate recovery from the Covid crisis. What this means is that your mortgage payment amount will get you a significantly bigger loan now with the same monthly payment as it did for the same amount a few years ago. As long as you have stable employment, it is a very good time to buy a house.
That helps explain why the average sale price is up over 6%. You may have noticed that the average sale price in only $417,441; not nearly enough to buy a house and about what it takes in Forest Hills to buy a nice 1 bedroom Coop. It is likely that the percent of sales that is coming from homes is increasing, and at level or increasing prices, and the percent of sales coming from Coops and Condos is decreasing, at dropping price. The total mix is likely adding up to the 6.3% increase.
What we have also seen is that some homeowners who could have potentially listed already have not as they wait out the uncertainty we are currently in. Combine that with fairly brisk sales of houses (speaking of 1 and 2 family homes specifically) and you have a relatively low level of inventory available. That could change as since the election, we have seen stock prices hit new highs, which typically injects confidence into the market. Unless something happens, it is a pretty good time to list your house. With the interest rates as low as they are, potentially buyers can stretch their purchase price without paying more for their mortgage than they expected a short time ago.
If you want or need to buy a home, there is the opportunity to lock in the type of interest rates that at a historically advantageous rate. If you are looking for a Coop or Condo, prices have been inching down and there is some opportunity to get more than you would expected a short time ago.