Long Island City Condos Boost Housing Prices in Queens

Sorry, outer-borough bargain-hunters; the median sales price in Queens actually increased slightly to $498,500 in the first quarter of 2008, compared to $492,900 in the same period last year, according to Prudential Douglas Elliman’s Q1 2008 Long Island/Queens Market Report.

Credit all the new high-end developments coming on-line, not increasing demand, for the price hike.

The average price of a luxury home in Queens passed the $1 million mark last quarter, rising 18.2 percent from $903,805 at this time last year to $1,068,474.

A spate of high-end residential projects closing in Long Island City also gave Queens a boost last quarter, pushing the median condo sales price up 13.5% to $272,500 compared to $240,000 in the first quarter of 2007.

“We’re seeing a lot of closings in LIC from projects developed over the last several years,” said Jonathan Miller of the Miller Samuel appraisal firm.

“That product (condos) is more closely aligned to Manhattan market.”

Despite the few bright spots, the market in Queens has been weakening over the past year, Mr. Miller said. The number of properties on the market jumped 20 percent last quarter from 9,270 units to 11,206.

He said the pace of rising inventory does appear to be easing, though.