Home prices hit a new high in Suffolk County and hit an earlier record in Nassau County last month, a new report shows.
The average home price jumped to $ 535,000 last month in Suffolk, up 17.6% year over year, OneKey MLS, the listing service that owns Long Island, said in a report released Monday. Nassau property prices rose nearly 13% annually to $ 670,000, the service reported.
Soaring prices suggest that sellers still have the upper hand in the Long Island property market. With the supply of listings down 26% from August 2020, it would take two months to sell all homes listed in Suffolk and 2.5 months in Nassau, at the pace of last month’s pending sales like that Show quotation service numbers. A balanced market has an offer of five to eight months, say brokers.
However, buyers could soon recover from soaring prices. For homes signed last month, the median price in Suffolk was $ 520,000 in August, down 3.5% from the previous month. Homes in Nassau were signed for an average of $ 650,000 last month, down 0.76% from July, OneKey figures show.
“It looks like the market is cooling off,” said Jim Speer, CEO of OneKey MLS. “They are reaching the limit of what people are willing to pay, and we may or have reached that limit.”
Some sellers are still posting multiple offers, Speer said, but “They don’t hear about the five, 10, 20 offers for houses.”
Real estate agents confirmed this point of view. The real estate market on Long Island is “no longer what it was before,” said real estate agent Jeewan Persaud. “You used to have [lines] it was so competitive with these open houses. You had people going crazy. “
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Now there are fewer buyers, “and they are very, very picky”.
Not all sellers understood the new market conditions, he said. Some hopeful salespeople, he said, “just throw out a price without much comparative analysis, and some get the price and some don’t.”
Despite changing market conditions, buyers stayed active, signing deals to purchase 1,801 homes in Suffolk last month, up 3.6% from July, OneKey reported. In Nassau, 1,438 apartments were signed last month, up 1.6% from July, according to the service figures.
Persaud predicted that prices could fall over the next year or so, especially if lenders foreclosure large numbers of homes once the moratorium on foreclosure ends in New York. The ban on evictions and foreclosures was extended several times in the course of the pandemic, most recently until January 15. Then he said, “I think that will push prices down.”
Speer disagreed, saying he expected a relatively small number of homes to get into foreclosures. Rising property values have given homeowners more equity that protects them from foreclosures, he predicted. “I think it will have very little impact on the market,” he said.
Also, low interest rates and a shortage of properties for sale would likely keep prices stable. The average mortgage rate was 2.88% last week, reported mortgage giant Freddie Mac.
With home prices appearing to have stabilized, Speer said, “It just looks like we’re likely to just stay stable.”
Maura McDermott covers housing and other business news on Long Island.