Queens residential sales market: Stable and back to "normal"

As one of the most unique boroughs in New York City, Queens reflects the widest range of cultures and a demographic that spans all income levels, but with a pronounced middle class majority. As far as residential real estate goes, there is a broad mix of single-family and multi-family housing, and is home to some of the earliest cooperative developments in the city, particularly in Jackson Heights. And while there have been a substantial number of luxury residential projects within the past few years, just look at the new, gleaming towers in Long Island City, the number of new developments and broken condos pales in comparison to some of the other boroughs. While the city has been seriously affected by the real estate downturn of the past two years, especially in Manhattan and Brooklyn, real estate values in Queens have remained relatively consistent. And if you are like me, a veteran of more than a few real estate cycles, you may recognize general feeling here: the market has gone "back to normal." Since most asking prices and/or buyers' taxable incomes in Queens often falls within certain thresholds, the borough has benefited tremendously over the past two years from the federal government's home buyers' tax credits. As a result, a number of buyers rushed into the market producing a spike in home sales here. And although the expiration of the credits on April 30th may have forced some of these buyers out of the market, the very desirable home prices in Queens has resulted in a stable demand for co-ops and condos. After more than thirty-five years as a broker at Argo Real Estate, I'm quite sanguine about the cyclical nature of real estate. But right now, even though we should be at the low point of a down cycle, factors such as low mortgage rates and the availability of FHA- and SUNYMA-approved funding for moderately priced homes, which are available throughout the borough, have helped bolster sales. As I write this article, mortgage rates have dipped below five percent for 15 and 30-year fixed home loans further stabilizing the market at its current level. Buyers with solid financials who are looking for a deal can find one in this market, especially if he or she is looking in Queens. For example, in the beautiful, convenient and very diverse Jackson Heights, a two-bedroom condominium apartment may be purchased for $300,000 or less. In Forest Hills, a three-bedroom condominium apartment in a doorman building is often in the $700,000 range. Nowhere in Manhattan or Brooklyn can that value be found, and I am increasingly seeing young professionals who are starting a new family or seniors looking to consolidate into a more comfortable environment entering the market in Queens. Additionally, unlike Brooklyn, many of the most desirable residential areas are near excellent public transportation and within minutes from midtown Manhattan. Another stabilizing force in this economic climate is that sellers are finding the quality of the buyers have improved from a few years ago. Those who may have run into trouble recently are unable to find financing today, leaving the market wide open for those with solid financials. And people who have been actively looking for a home in Queens have found their buying potential is much greater than previously anticipated. This may be the only borough that is seeing any real positive action, in fact. In sum, all-time low mortgage rates combined with a significant mix of moderately priced condos and co-ops, have helped the Queens market remain stable even after federal stimulus money is removed from the market. And for generations, this stability has made Queens the destination for the many middle and upper middle class New Yorkers who find adequate shelter from the sometimes turbulent economic cycles that occur naturally over time. *to comment on this story visit nyrej.com* Karen Berman is vice president of Argo Real Estate, New York, NY.