April 29, 2022

3 Reasons to Sell Your Long Island Home in the Next 6 Months

With summer right around the corner and another school year drawing to a close, you might be thinking about putting your Long Island home up for sale. However, after years of increasing home prices, how do you know if now is the right time to sell? Should you wait another year and then move? While there’s no perfect time to sell, we are seeing a few different things in the Long Island real estate market that will work in your favor should you decide to list this year.

 

The Great Return to Work is Upending Lives

 

We knew it was coming. After so many companies switched their employees over to remote work in the spring of 2020, businesses are now requiring their workers to show up to the office again. While some people are still working from home indefinitely, others are discovering that they like their remote lifestyle and don’t want to go back to the office. This sentiment is one of many that’s driving the Great Resignation – the name for the phenomenon of workers quitting their jobs in droves.

 

What does this have to do with selling your home? When people change jobs or careers, they often reassess their housing needs. The fact that so many people are contemplating a shift all at once only strengthens the already strong pool of prospective buyers. More demand for Long Island homes and low inventory means higher sales prices.

 

 

Interest Rates Are Rising Fast

 

If you’re on our email list, we laid out a few predictions for the Long Island housing market as soon as it was announced last month that the Federal Reserve planned to increase its benchmark rate a quarter of a point. While that might not have seemed like much at the time, we’re already seeing its effects on the Long Island market.

 

According to Bankrate, the average 30-year fixed-mortgage rate is 5.29%, up twenty-two basis points over the last seven days. Compare that to where rates were in January of this year – hovering around 3.19%! Rising interest rates directly impact how much home a prospective buyer can afford to purchase. For some buyers, it means adjusting their budget and search criteria. For others, it might mean taking a break from their house hunt entirely.

 

Trying to curb rising inflation in every sector, the Feds aren’t planning to reverse positions anytime soon. That means more buyers might find themselves priced out of the Long Island neighborhood where they really want to buy.

 

As a seller, listing your home sooner rather than later means placing your property in front of the widest pool of potential buyers. Buyer demand is still incredibly strong in the Long Island market. Just don’t want too long for conditions to change.

 

Low Inventory Keeps Home Prices High

 

Across the country, the available inventory of homes for sale hasn’t kept up with demand from eager buyers hoping to make homeownership a reality while interest rates are still low. Long Island is no different. In fact, we’ve experienced some months of record-low inventory over the last few years. Between March of this year and March of 2021, the number of Long Island homes sold dropped 18%!

 

That’s great news if you’re a seller. With little competition from other properties, you’ll likely receive a great offer for your Long Island home. Many of our clients have sold their homes for record prices over the last year. If you’re worried about not having anywhere to go after you sell, we have strategies to get your purchase offer accepted. We also know how to negotiate on your behalf to ensure you sell on your terms.

 

 

Still on the fence about selling? Give us a call for your free consultation. We’ll be happy to address your concerns and share our solutions-based approach to selling real estate.  

Feb. 10, 2022

Why Spring 2022 Will Be a Great Time to Sell Your Long Island Home

After another record-breaking year in Long Island real estate, both prospective home buyers and sellers are preparing for a hot spring market. While spring is traditionally considered one of the best times to make a move, there are a few factors that will propel the 2022 market to new heights. If you’ve been on the fence about listing your property and moving up, moving down, or relocating out of the area, read on for some of our top reasons to list your home this spring.

 

 

Inventory is Still Very Low

 

It’s no secret that the Long Island housing market has struggled to keep up with buyer demand for the last several years and 2022 is shaping up to be no different. Both the time of year and the threat of the Omicron variant have kept many sellers from listing. As a result, we’ve seen a lot less homes coming on the market than we usually do in January and February. That means if you’re ready to take the next step, it could pay off to list your home sooner rather than later. We expect inventory to pick up as we move through spring and into summer, though it’s unlikely to keep up with ongoing buyer demand.

 

 

Interest Rates Are Starting to Creep Higher

 

As if buyers needed any more motivation to get out into the marketplace and start their home search, interest rates are rising and expected to end up around 4% by year’s end. Even a small change in interest rates can negatively impact a buyer’s purchasing power. In a market like Long Island, where home prices are up significantly from 2020, and most homes are selling for over asking price, every dollar counts. The clock is ticking, and buyers are more motivated than ever to secure a home on Long Island.

 

 

Long Island Home Prices Keep Breaking Records

 

Last year, home prices in Nassau County rose 9% while Suffolk County home sellers saw gains of more than 10%. Incredibly, home prices are still rising, fueled by low inventory and high buyer demand. How high will Long Island home prices go? Experts across the country expect we’ll see values grow another 5.7% nationwide by year’s end.

 

 

What the Spring Market Holds for You

 

Here’s the bottom line: if this is the year that it makes sense for you to sell, plan to list your home in March, April, May, or June. While we can’t predict the future, we can be reasonably sure that the next few months will offer exceptional opportunity for home sellers. With cutting-edge marketing and expert positioning, we can help you get the most money possible for your property. Last year, many of our clients broke records in their neighborhoods and communities. We’d love for you to be our next success story.

 

If you’re curious about what the Pesce & Lanzillotta Team can do for you, give us a call or click here to learn more about our seller services.

 

 

Dec. 8, 2021

Pros and Cons of Selling Your Home During the Holidays

While you may be thinking of listing your home after the first of the year or even in the spring, the holiday season can also be a great time to sell. After a year like 2021, many Long Island home sellers are taking advantage of unprecedented buyer demand to secure a great offer for their home now.

 

However, selling your home over the holidays may or may not be the right move for you. To help you decide, read on to see some of the pros and cons of listing your Long Island home during the final weeks of the year.

 

PRO: BUYERS ARE HIGHLY MOTIVATED

 

Most buyers who are still out looking at homes on Long Island during the holidays are serious about finding and securing a home. Whether it’s because they’ve recently relocated for a job or they’re tired of losing out in multiple offer situations, holiday season buyers are ready to get into escrow and close as soon as possible.

 

PRO: LOWER INVENTORY ALLOWS YOUR HOME TO SHINE

 

Many Long Island home sellers pull their homes off the market over the holidays or wait until the New Year to list. That means your home will have less competition from other similar properties on the market. Listing now may provide an opportunity for a more unique home to shine.

 

PRO: A FAST CLOSE MAY BE POSSIBLE

 

People tend to have more flexibility in their schedules during this time of year, making it easier for buyers to schedule a showing or attend an inspection. Similarly, vendors may have more room in their schedules to take on another client. It’s entirely possible to close quickly during the holiday season!

 

PRO: HOME PRICES ARE STILL UP

 

Finally, home prices are still up across Long Island. Nationwide, home prices rose about 18% over the last year. In certain pockets of Long Island, we’re actually seeing home prices up about [X] from last year at this time – outpacing the national average! Sell your home now, and you could get a great offer for your property. Perhaps for more than you thought possible!

 

Curious about your current home value? Request your free estimate from us here or contact usfor a customized valuation.

 

CON: LESS BUYERS LOOKING MAY MEAN LESS OFFERS

 

Now that we’ve looked at the pros of listing your home during the holidays, it’s time to discuss the negatives.

 

At the top of the list is the fact that while holiday home buyers are super motivated, there’s a lot less of them overall. While you may receive a great offer for your Long Island property, you may not be caught in the multiple offer situation many sellers have navigated over the past few years. That may not be a huge deal to you, but if it is, you may want to wait to list until more buyers head out shopping again.

 

CON: THE HOLIDAYS CAN BE BUSY

 

No matter who you are, the holiday season is often busier than other times of the year. Between work parties, kid events, and family celebrations, it’s easy to feel overscheduled and stressed. Putting your Long Island home on the market right now may feel like too much. Even with an experienced team to guide you, you’ll still need to make your home available for showings and inspections. Not to mention making time to consider offers, requests from the buyers, and packing to move!

 

CON: YOU’LL LIKELY NEED TO SCALE BACK YOUR HOLIDAY CELEBRATIONS – INCLUDING DECOR

 

As we mentioned above, the holiday season often brings a flurry of seasonal events and parties. Yet if you have your home on the market, you’ll likely have to scale back your celebrations to make your home both available and show-ready. You’ll also need to keep the holiday decor to a minimum to help buyers see what your home has to offer and picture themselves living there. Foregoing the usual holiday festivities and twinkle lights may be a dealbreaker to some.

 

CON: HOLIDAY CLOSURES CAN CREATE SCHEDULING DIFFICULTIES

 

Finally, while flexible schedules can make a quick close possible, it can also be challenging to make it all come together. Many people travel or take extra time off over the holidays. It can sometimes be hard to find and schedule appointments that work for all parties involved while still meeting your contracted deadlines.

 

Now that you know some of the positives and the pitfalls of listing your Long Island home during the holidays, you may have made a decision about when you’d like to list. The next step is to hire an experienced Long Island real estate team to represent you.

 

We have the experience and the proven results to help you get your home sold now or next year! Give us a call today, and we’ll help you create a game plan to get your home sold on your timeline. We look forward to hearing from you. Happy holidays from all of us at the Pesce & Lanzillotta Team!

Nov. 3, 2021

What Higher Inflation Could Mean for the Long Island Housing Market

If you’ve been to the grocery store lately or tried to book a hotel, you’ve seen the effects of inflation in today’s economy. Supply chain issues and labor shortages in multiple industries have contributed to price growth almost across the board. In the last year, home prices in the US rose almost 20% and are expected to climb another 8% next year

 

With all this added expense on goods, services, and necessities, should you be worried about inflation? Perhaps more concerning, should you be worried about how inflation will affect the Long Island housing market in the coming years?

 

Put simply, while inflation can be a cause for concern about the overall health of the economy, real estate remains one of the most solid investments you can make in today’s market. Here’s why:

 

Housing is Unlike Other Products on the Market

 

Houses, like anything else, are ultimately a product. However, unlike other products which can become severely devalued, or even worthless depending on market fluctuations, housing will always retain some value. People need places to live, whether they’re buying or renting. That’s one of the reasons real estate is viewed as a solid investment, no matter what’s happening in the market. 

 

Even if talk about hyper-inflation concerns continue, it’s still a good idea to buy a home if it makes sense for your situation. Home prices on Long Island are up 12% from last year at this time, meaning you could sell your existing property for a great price. If you’re a buyer looking to own for the first time, buying a home on Long Island now means you can lock in a great interest rate. You’ll also benefit from having a little more spending power to get that property you really want. Whether selling or buying, we would love to work with you. Our team has helped tons of people on Long Island this year and we’re gearing up for a busy 2022. Let us help you make your next move!

 

Owning a Home Provides for Steady Housing Costs

 

One of the benefits of a fixed-rate mortgage is just that: a fixed interest rate. That means your monthly mortgage payments will stay the same over the lifetime of your loan, rather than fluctuating due to the market and consumer demand. While you still have property taxes and other expenses for your home that can change, the lion’s share of the cost of holding onto your largest asset will remain steady. 

 

If you haven’t yet taken the opportunity to refinance and secure a lower rate on your mortgage, now is truly the time. Interest rates are already rising and on track to continue their climb into 2022 - the Mortgage Bankers Association predicts rates will hit 4% by the end of next year! Inflationary conditions also influence interest rates, so again, lock in that low rate now. If you need a referral for a great local lender on Long Island, reach out to us – we have several trusted contacts we can refer you to. 

 

Look to Existing Homes, Not New Homes

 

Most everyone dreams of building their own home with custom features and amenities. However, due to the cost of lumber and other construction materials, the cost for new homes is up significantly and likely will remain high for some time. 

 

While the inventory of homes in the Long Island market is down, buying an existing home may end up being more affordable than building from the ground up. If you’re looking to buy on Long Island, click here to browse all available homes on the market and set up a free account to get alerts whenever a new property is listed.

 

Be Cautious, Not Afraid

 

In times of inflation, it’s important to be cautious and not overextend yourself. However, that doesn’t mean you have to be afraid and stay in a situation that doesn’t serve you. If your current home is not working for your needs, don’t be afraid to make a move. Meet with a lender to find out what you can afford to buy and then set a purchase budget that feels comfortable. Buying at the top end of your budget rarely makes sense in any market. 

 

If you currently own a home on Long Island, you likely have increased equity you can put toward your next home. Click here to get a quick, free estimate of its current value or reach out to us to receive a personalized valuation. You might be surprised at what you can get for your Long Island property in today’s market. 

 

With the economy still finding its way back after the effects of the COVID-19 pandemic, no one is certain exactly how things will shake out. However, we can count on the Long Island housing market continuing to be a good investment opportunity. Whether selling or buying, there’s a lot of upside in today’s market. If a move this year or next makes sense, give us a call to take the next step! 

Sept. 27, 2021

How the Delta Variant Could Affect the Long Island Real Estate Market

With surging COVID-19 cases and the Delta variant increasingly in the news, there’s some concern in the Long Island community that we might return to the early days of the pandemic. Mask mandates, schools closing, and certain businesses deemed non-essential.

 

The real estate industry has proven its resilience in adapting to the novel coronavirus by implementing new health and safety procedures. However, if COVID cases continue to rise, what will that mean for the Long Island housing market?   

 

Determined Buyers and Sellers Will Likely Stick It Out

 

This time around, we know what we’re dealing with. Many people are vaccinated or have already had COVID. This means buyers and sellers who really need to move are unlikely to back off. Some sellers may pull their homes off the market, but many will likely stay the course knowing that there are still buyers out there ready and willing to jump through whatever hoops are necessary to get a home. We might see some change in available inventory and the number of closed sales, but it’s unlikely to be as dramatic as it was at the beginning of the pandemic. 

 

Virtual Tours and Showing May Make a Comeback

 

While a lot depends on how much the Delta variant causes the pandemic recovery to backslide, we might see more agents and sellers opting to use 3D and virtual tours as a pre-screening mechanism for prospective buyers. That way they limit the number of people entering a home to only the most serious of buyers. Virtual showings have tapered off somewhat as we’ve returned to normal on Long Island, but we could see a rebound in the months to come.

 

Interest Rates Will Stay Low

 

Despite the Fed’s declarations that interest rate increases are on the way, turbulent times tend to have an insulating effect on interest rates. Just don’t expect a dramatic decrease as rates are already near historic lows. Mortgage rates may dip a bit, but it’s more likely that the Fed will just reverse course and push back their planned rate increases until later in 2022 and 2023. Either way, prolonged low interest rates will continue to incentivize many buyers to not wait and buy now – Delta variant or not. On Long Island, where we’ve struggled with limited inventory and intense buyer competition over the last year, low interest rates will continue to propel multiple offer scenarios and bidding wars. 

 

Home Prices Will Continue to Rise

 

While the rate of home price growth has shown signs of slowing over the fall and winter, if buyer competition intensifies it will put more pressure on home prices as people fight to secure one of the few available homes. Many communities on Long Island have already seen record-high sales over the last twelve months. A new wave of intense buyer activity could push those prices higher still. For the latest in Long Island market data, click here

 

No matter what happens with the Delta variant, the bottom line is this: the Long Island housing market is likely to weather the changes just fine. We have more information about the virus and more tools in our arsenal to keep people safe. Determined agents and clients sustained the market in the early days of the pandemic and they will do so again. We’re also rounding the corner into the traditionally slower part of the year for home sales. Some drop-off is to be expected and, in the end, it may be hard to determine how much of that is due to rising COVID cases and how much is just normal seasonal adjustment. 

 

If you want to list your home this fall or start your search for your Long Island dream home, we’re here to help. With our innovative and tech-forward approach to real estate, we can help you adjust and stay the course no matter what obstacles the Delta variant presents. Reach out to us today to get started!




July 23, 2021

Housing Inventory is Increasing on Long Island: What’s Driving the Change

As Long Island prepares for the traditional second wave of real estate that happens in late summer and early fall, there’s good news for prospective home buyers this month: inventory is finally increasing.

 

What’s behind this change and, perhaps most importantly, will it last? Here’s what we think is driving the shift in Long Island real estate.

 

Sellers Have Been Tempted Off the Sidelines by High Prices

 

After months of rising home prices, including record-breaking sales all over Long Island, some sellers have been tempted to see what they can get for their own property. This temptation to list and cash out while the market is hot contributed to an 11% increase in the number of new homes that hit the US market in June. While inventory is still down more than 40% from a year ago, it’s encouraging to see a significant month-over-month increase. July market data is not finalized, but the number of new homes for sale on Long Island has definitely increased in recent weeks.

 

Want to see the latest market data for your community or zip code? Reach out to us!

 

The Market Has Started to Top Out and Come Back to Reality

 

There’s a ceiling to every market and we may have finally reached it on Long Island. Homes are only worth what a buyer is willing to pay for them. If prices rise too high and too fast, buyers won’t buy. It’s as simple as that. If buyers won’t buy, that means sellers will need to consider price reductions. Overall days on market will increase as result. 

 

Despite the change, sellers on Long Island are still getting great prices for their homes. Curious what yours is worth? Click here to request a free estimate.

 

The Recovering Economy Has Encouraged Some People to Move

 

The post-pandemic economic recovery has been stronger than expected. More than 850,000 jobs were added in the US in June. Unemployment rates fell to pre-pandemic levels. The Federal Reserve also announced they will raise interest rates twice in 2023, a move that reflects their confidence in the forward momentum of the economy.

 

One surprise for the job market in recent months has been the number of people who are quitting their jobs or changing careers. Nicknamed “The Great Resignation,” many people have decided to look for other opportunities that either allow them to telecommute or involve less of a drive to the office. Others, encouraged by the strength in the economy, are seeking higher pay and more career opportunities. With millions on the move, people are doing what they always do when they’re navigating a big life change: putting their homes up for sale. 

 

Bottomline: While There Are Still Plenty of Buyers Out Looking, It’s Not Such a Frenzy Anymore

 

During the first half of 2021, the Long Island housing market was a whirlwind of eager buyers and determined agents trying to get homes for their clients. Bidding wars were common, and buyers were willing to pay well over asking for the home of their dreams. Some people waived their inspection contingency and even paid the seller’s closing costs alongside their own. That type of market simply can’t last forever. Now, we’re seeing that shift. 

 

Whether people have grown weary of fighting to get a home or have put their plans on hold while they travel to see loved ones this summer, the market feels just a bit more relaxed. There are still way more interested buyers than there are homes for sale and while many properties do receive multiple offers over asking, buyers are acting a bit more rationally. They’re willing to walk away if the demands are too great or the price is too high, putting pressure on unrealistic sellers.

Where there’s change, there’s always opportunity. After months of such a strong seller’s market, there’s a bit of hope for prospective home buyers. If you’re been thinking of selling or need to sell because your home no longer fits your needs, it’s still a great time to list. Home prices are up across Long Island and with the right agents to market your home, you’re sure to get a great offer. Check out some of our recent featured sales hereand if you’re ready to make your move, give us a call today

June 23, 2021

Best Things About Living on Long Island

Working on Long Island and selling some of the area’s most beautiful homes has given us a deep appreciation for what makes this community truly special. With more than ninety distinct towns and villages, there’s so much to love about living here. 

 

Though if we had to choose, here are nine of the absolute best things about living on Long Island. 

 

Driving Distance to Plenty of Beautiful Beaches

 

Long Island is only about 23 miles wide at the widest point. That means you’re always within driving distance of the beach! Whether you’re more of a North Shore or a South Shore person, Long Island offers miles of coastline to explore. Find your new favorite beach this summer – find information about beaches on Long Island here.

 

Lots to See and Do for All Ages

 

While Long Island doesn’t have the nightlife of New York City, there’s still plenty of activities for people of all ages. Historic sites, museums, gardens, and the aquarium are all popular choices for residents and tourists alike. Some of our favorites include Old Westbury Gardensthe Planting Fields ArboretumLong Island Aquarium, and the Cradle of Aviation Museum. Petting zoos, farm tours, berry picking, and pumpkin patches provide outdoor fun for kids and adults. Neighborhoods parks host events all year long. If you’re more into theatre and the arts, Long Island has a number of different institutions that put on shows throughout the year – click here to see what’s coming up next.

 

Abundance of Water Sports and Activities

 

Owning to Long Island’s unique geography, with the open waters of the Atlantic Ocean on one side and the Long Island Sound on the other, there’s no shortage of water activities you can enjoy. From sailing to swimming, kayaking, fishing, and even surfing, if you love the ocean, you will love living on Long Island.

 

Gorgeous Landscape to Explore

 

One of the best things about living on Long Island is the gorgeous scenery that changes with the seasons. Unlike some parts of the country where you have to suffer through a few months of bad weather, all four seasons on Long Island have their unique charms. From snow-covered landscapes to flowers in spring to summer days on the beach and the turning of the trees in fall, miles of walking and bike trails allow residents to enjoy Long Island’s natural beauty throughout the year.

 

Emerging Wine and Craft Beer Scene

 

Over the last twenty years, a thriving craft beer scene has emerged on Long Island. With more than sixty craft breweries and tasting rooms, it’s easy to spend an afternoon enjoying a pint with friends or checking out a beer festival. 

 

Along with craft beer, you can find Long Island’s wine country situated in western Suffolk County. With vineyards and wineries dotting both the North and South Fork, locally grown and cultivated grapes lend themselves to unique wines. Wine festivals and vineyard tours are held throughout the year.

  

Close to Montauk, the Hamptons, and Fire Island

 

What if you could vacation close to home? On Long Island, it’s easy to get away for the weekend and visit some of the top tourist destinations in the country. The Hamptons have long been the summer vacation playground for the rich and famous – with good reason. The gorgeous beaches and picture-perfect beach towns make it a great choice for a summer escape.

 

If you’re looking for a different sort of adventure, Montauk is less crowded than the Hamptons while still offering the same idyllic coastal experience. Don’t miss the iconic Montauk Lighthouse, the oldest lighthouse in New York. Or head to Fire Island, which feels like a trip back in time. With little car access on the island, most people walk or bike to get where they’re going which lends itself to a slower pace of life. 

 

Rich with Historical Sites and Landmarks

 

The history of Long Island is as old as the United States itself. While the town of Southold holds the distinction of being the first English settlement in the area (dating back to 1640!), there are historic homes and sites all over Long Island from the seventeenth, eighteenth, and nineteenth centuries. From sprawling Gold Coast mansions to the birthplace of Walt Whitman, Long Island is an exciting place for history buffs.  

 

Great Local Restaurants and Cafes 

 

Long Island has a great restaurant scene with a wide variety of different dining concepts and cuisines to enjoy. Farms and orchards supply kitchens with the freshest local ingredients – fruits, vegetables, eggs, cheese, meat, chicken, and more can be sourced nearby. With easy access to the ocean, Long Island is also known for its fresh seafood which is some of the best in the country! 

  

Proximity to New York City

 

One of the things residents love about living on Long Island is the close proximity to New York City. Many people used to commute to the city before the COVID-19 pandemic and as offices transition back to in-person work, many people are starting to commute again. It’s also easy to drive to the city for the day and see a show, go to a museum, or visit Central Park. You can also get there by train – click here for more information about rail service on Long Island. 

 

Are you considering a move to Long Island? Get to know the area by learning about all the different communities here. Already own a home here and thinking about moving? We would love to work with you to sell your home for top dollar and find that next property. Get in touch to learn about our seller services.

May 14, 2021

National Eviction Moratorium Could Be Coming to an End

More than six months after the Centers for Disease Control and Prevention (CDC) enacted a moratorium on evictions nationwide that order could be coming to an end. Last week a federal judge in Washington D.C. ruled that the CDC’s order was illegal and must be terminated, though the ban will remain in effect until final ruling. While the CDC has appealed the decision, with vaccinations ramping up across the country and all states moving forward with their reopening plans, it’s likely that the decision will be upheld.

 

In New York, the state legislature signed an extension of the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, which placed a hold on evictions until the end of August. Even if the nationwide eviction moratorium is terminated, so long as the New York ban remains in effect, landlords and tenants will still need to abide by the state’s ban.

 

As we wait on a final decision about the national eviction moratorium, there’s one question on the minds of many Long Island real estate industry professionals: what comes next?

 

According to CNBC, 1 in 5 renters in America are “are struggling to keep up with their payments amid the coronavirus pandemic.” If the eviction moratorium comes to an end and a renter has fallen behind with their monthly payments, their landlord can move to evict them. This could potentially displace millions of people across the country.

 

Best case scenario, as the economy continues to recover and many businesses hire back workers, the problem could take care of itself. With people going back to work, some renters might have the opportunity to either make up missed payments or work out a plan with their landlord to get back on track and avoid eviction.

 

Worst case scenario, there will be a lot of movement in the rental market and a possible increase in foreclosures across the country if some landlords are unable to keep up with their own mortgage payments. While foreclosure is never a good thing, in the long run it would actually add inventory to an incredibly tight sales market. Some landlords may also opt to put their rental properties up for sale to avoid a foreclosure.

 

Either way, when the eviction moratorium comes to an end, it doesn’t mean we’re heading toward a housing market crash. There is still a ton of demand from qualified buyers who are pre-approved and have the funds to buy, but haven’t yet secured a home. More inventory, even distressed, would be a welcome relief to prospective home buyers.

 

A market correction is much more likely than a crash. If more inventory enters the market, it will help offset some of the current demand for homes. This could slow upward price growth and reduce the number of offers received on an individual property. This is not to say the market would shift from a seller’s market to a buyer’s market on Long Island overnight. It would just mean that instead of receiving over ten offers on their home, a seller might receive two or three. More inventory would mean a more balanced market for everyone.

 

If you currently own a residential investment on Long Island that you’re thinking of listing, we would love to talk with you about how we can help you get that property sold quickly. Check out some of our recently sold properties to get an idea of how we market homes. We also have plenty of qualified buyers that are looking to buy a home on Long Island – we might be able to make a match for you from within our own client database. Reach out to us today and let’s set up a meeting to get your property on the market this year.

April 13, 2021

What a Low Inventory Market Means for the Next 6 Months of Home Sales on Long Island

With the first quarter of 2021 officially in the books, we can say we’re definitely in one of the tightest and most competitive real estate markets we’ve witnessed here on Long Island! Thanks in part to the exodus from New York City that started last spring and hasn’t let up since, prospective home buyers are still competing for homes across every price bracket. With many sellers still hesitant to list their properties, the few homes that are available usually sell in just days with multiple offers. 

 

CNBC recently posted a report about the state of the U.S. housing market that mirrors the pain we’re feeling here on Long Island. According to data from the National Association of Realtors (N.A.R.), the number of pending home sales fell more than 10% in February 2021 from the month before. N.A.R. also reported that there were “just 1.03 million homes for sale at the end of February, a 29.5% drop compared with February 2020. That is the largest annual decline ever and the lowest supply on record.”

 

Last month, we brought you our predictions for the Long Island spring real estate market. Since then, inventory has continued to decline on Long Island – we only have about two months of available inventory right now. In a normal, balanced market we would expect to see six months of inventory or more. 

 

As a homeowner, a prospective seller, or a potential buyer, it’s important to understand how these historically low inventory conditions will shape the next six months of real estate sales on Long Island. 

 

For sellers, you can expect your home to be met with a lot of interest from buyers. However, that doesn’t mean you should go it alone just to save the commission. It’s never been more critical to have an agent on your side. Working with an experienced real estate team will help you sell for the highest price possible while ensuring you go under contract with the strongest offer and buyer. Due to the extreme competition in the market, many agents are getting very creative with their offers. While cash is often king, there can be certain terms tucked away in another offer that actually makes it a better choice. Your agent will help you make sense of all the offers you have on the table so you can make the best decision for your situation.  

 

If you’re planning to buy this year, it’s important you know how competitive this market is. Even with the best agent fighting for you, you’re probably going to need to put in at least a few offers to get one accepted. Buyers don’t have a lot of negotiating power so be willing to listen to your agent’s counsel. This is not the time to lowball. Be prepared to put in your highest and best from the very beginning. Then, be patient. Homes are going under contract every day. If you choose the right agent to represent you and really listen to their advice, you can be one of those lucky buyers, too.

 

Finally, as a homeowner you’ll want to keep your finger on the pulse of this market. Every month, we pull reports for Nassau and Suffolk counties and post them on our website. What we’re seeing right now on Long Island is a huge increase in closed sales. The number of closed transactions for homes over $1 million is up 120% from last year at this time! For properties under $1 million, closed transactions rose 40% annually. Even if you have no plans to sell, this is important information to know. Increases in closed sales like this indicate a very strong seller’s market, which contributes to rising home prices. Your home may be worth quite a bit more and your equity might have also increased substantially since the last time you checked. Remember, you can request your free online valuation any time by clicking here or reach out to us to request a more personalized estimate. 

 

No matter where you’re sitting, this market is one to watch. Even if we were to suddenly get a flood of new inventory, there’s so much pent up buyer demand that things won’t change overnight. While the next six months will probably hold some surprises, these low inventory conditions will likely be with us at least into Fall 2021.  

 

Questions on what the market looks like in your neighborhood? Not sure if it makes sense to cash out your equity and sell now? We can help. Contact us any time for free market information, sales reports by zip code, and more. 

March 12, 2021

Long Island Spring Real Estate Market Predictions

In February of last year, we laid out our predictions for the Long Island spring real estate market. While no one could have predicted what would happen just a month later with everyone going into lockdown and real estate sales effectively coming to a halt until June 2020, the housing market on Long Island quickly rebounded during the second half of the year.

 

This year, things are shaping up to be a bit more normal. We’ve already been busy helping sellers and buyers make early moves in 2021, ahead of the usual selling season. With spring just around the corner, here are our thoughts on what’s ahead for Long Island real estate.

 

Buyer Competition Will Remain Fierce

 

The early days of the pandemic saw many people leaving New York City for Long Island. A year later and buyer demand for homes remains as strong as ever. With the vaccine rolling out, kids returning to school, and workers going back to the office, people are hopeful. This optimism, along with continued low interest rates, have propelled many prospective buyers into the Long Island market. However, with inventory continuing to stay near record lows, buyers are finding the marketplace crowded and competition fierce.

 

If you’re planning to buy this year, be prepared to move fast. Homes often go into escrow just days after being listed. Working with the right agent that knows the market and has the negotiation skills to get offers accepted is critical. You’ll also need a certain amount of patience and resilience to buy in this market. Many buyers make several offers before finally going under contract.

 

 

Home Prices Will Likely Not Waiver Much

 

Across the country, home prices are expected to climb 5.7% this year.  Here on Long Island, thanks to all the buyer demand in the real estate market, low housing supply, and low mortgage rates, we anticipate home prices remain strong during the spring and summer. Multiple offer situations help drive up prices, with buyers doing everything they can to entice the seller.

 

If you’re planning to sell your Long Island home, this is good news for you. Yet even in a hot seller’s market, it’s important to work with a team who can help you get top dollar for your home. First impressions still matter and homes that are marketed properly will draw the attention of more prospective buyers. More attention means more offers for you. More offers usually mean more money in your pocket at the closing table.

 

 

Inventory May Increase

 

Though we’ve had months of persistent low inventory conditions on Long Island, with a rosy economic outlook, the optimism of a new stimulus plan, and widespread vaccine rollout ahead, more sellers may opt to list their homes in 2021. While it likely won’t be enough to offset the current demand, more inventory may make things a little easier for prospective buyers.

 

 

Interest Rates Will Likely Inch Up

 

While interest rates will remain low throughout 2021, rates have started to creep up in recent weeks. The 30-year fixed mortgage rate hit 3.26%, the highest it’s been since July 2020. Still, with rates under 4%, most buyers see the wisdom of buying a home now to lock in a great rate.

 

 

The Housing Market Won’t Crash

 

In recent weeks, the rumbles about a potential housing market crash have gotten louder. Many people point to sustained home price growth over the last few years as evidence that the market may be headed for a crash. After all, what goes up has to come down right?

 

Yet out here on Long Island, it’s easy to see that it’s just basic economics at work.  As we have mentioned many times, low supply and high demand, coupled with the historically low interest rates will continue to fuel this aggressive real estate market.

 

While only time will tell, it seems unlikely that the housing market will crash in 2021.

 

 

If you’re planning to sell or buy a home on Long Island this year, we would love to earn your business. Our innovative, targeted marketing strategy has helped many of our clients sell their homes for record prices. If you’re looking to get top dollar for your home, check out some of what we do to successfully market your home here. You can also request a free estimate of your home’s current value today. If you have questions about the market or would like to see an updated activity report for your neighborhood, reach out to us.