Staten Island's Housing Market grows at a robust pace, only bested by tax credit month of June 2010. However, with higher mortgage interest rates, the housing market is likely to cool off a bit in the following months.
In the past few months, we saw some pretty incredible numbers in the housing market—and this past month was no different. With the numbers from this past June, we can definitely see an improvement in the market.
First, let’s take a look at the monthly sales. Two hundred and ninety-five homes were sold this past June. This is astonishing, since it’s an increase of almost fourteen percent from May to June, and an increase of about nineteen percent from the prior year. It seems like we’re quoting ourselves month after month, but really, this past June represents the best sales month we have seen since the tax credit of June 2010.
With about 200 sales being the norm, we are definitely above par this month.
The number of homes sold in June certainly helped to bring the total annual sales up, which came in with 2,804 homes being sold in the past twelve months. From the July 2011 to June 2012 span, this is an increase of over fifteen percent, with 382 more homes being sold in these past twelve months than the prior twelve months. That’s like two normal months’ worth of home sales.
The average listing and selling prices both decreased from the prior month, with the listing price decreasing more than three percent to $449,279, and the average selling price decreasing just a little over three percent to $426,604. Be that as it may, the average listing price increased over four percent from the prior year, while the average selling price increased over five percent.
Even with the decrease in the average selling price, the monthly volume came in much higher than last month. This month, the volume was totaled at $125,848,450, which is ten percent higher than last month and twenty-five percent higher than June of last year! This is another number we haven’t seen since the tax credit in June of 2010.
Furthermore, homebuyers have been receiving less of a discount for the homes they are buying. This June, the percentage of a home’s listing price that homebuyers paid for was at 94.95%. That’s almost ninety-five percent! Aside from November of 2012, when the percentage was at 95.24%, we haven’t seen a number even remotely close to 95% since 2007!
The median sale price is also doing well, just like last month. Though it may have decreased about one percentage point from May—to $409,000—it’s about seven percent higher than June of last year. This is the second month in a row that the median sale price has been higher than $400,000. We haven’t seen something like this since 2010!
There were 2,400 homes on the market in the month of June, which is a little bit of an increase from the prior month, by about one percent. This is almost twenty-two percent lower than we saw in June of 2012, but low housing inventory is a problem we have been facing in Hurricane Sandy’s aftermath. If you look at the numbers from 2013 alone, we can see that the housing market has been making headway in this category, as only 2,292 homes were on the market this past January. Moreover, the New York City Department of Buildings has been reporting many acceptances for residential building permits, so we will likely be seeing many homes of new construction on the market soon.
One leading indicator has finally come full circle, as a homes average days on the market falls dramatically.
The average cumulative days on the market took a fourteen percent nosedive down from both the prior month and the prior year—in a good way. This past month, the number showed that homes spent an average of 156 days on the market. We haven’t seen a number this low in almost a year.
The number of months it would take to sell all of the homes on the market is perhaps the most shocking. With such a little decrease from April to May, you wouldn’t think that the number of months could get much lower. However, using the 2,400 homes on the market in June, the number of months it would take to sell all of these homes was estimated at 8.13! This is amazing, considering the high number of homes on the market. That tax credit really helped the housing market in June of 2010, because we haven’t seen such a low number since that time, when it was at 6.96.
So what’s helping the housing market today? Could it be that it’s just getting healthier, or will next month show that interest rates cooled things down a bit.
For the latest on Staten Island real estate, check back here once a month to see the pace of the housing market.