Dec. 14, 2022

Do Holiday Decorations Yield Higher Home Sale Prices?

 

The holidays are here! That means it’s time to unroll the tangle of twinkle lights in the garage, set up the tree or menorah, and give your home a dose of holiday cheer. However, if your home is currently on the market or you’re planning to list in the next couple weeks, you might be hesitating. Do holiday decorations yield higher home sale prices? Or would you be better off skipping the festivities this year and sticking to clean, fuss-free staging?

 

We’ve sold millions of dollars in Long Island real estate over the years, including many properties during the holidays. If you’re thinking about listing your home, don’t worry about missing out on the fun and joy of the season. When done right, holiday decorations can actually help your home sale! Most buyers who are shopping during this time of year expect to see decorated homes. Though it’s important to use these tips to strike the right balance so your home appears warm and inviting rather than cluttered and chaotic.

 

Less is More

 

Think simple when it comes to holiday decorations. Tasteful strands of white outdoor lights around the eaves and trim of your home. A classic wreath on the door. A tree done with monochromatic ornaments. A single menorah near the window. Focus on giving your home little touches of holiday cheer and keep most of your decorations packed away for next year.

 

Use Décor to Showcase Your Home’s Standout Features

 

If you have a beautiful staircase, a simple garland along the bannister can help draw attention to it. Have a generous living room or great room with high ceilings? Keep your tree proportional to the space to show off the height in the room! If your home is older and has a classic mantle, a row of matching stockings or some holly can help evoke a sense of nostalgia and allow the buyer to imagine celebrate the holidays here with their own family.

 

Avoid Stifling Your Home With Decorations

 

Above all, you want to make sure your décor is accentuating, rather than blocking your home’s key features. A tree near the window can block the light, making your home appear darker than it is. Too many decorations can be just as distracting as decorations that blink, light up, move, or make sounds. Holiday cards and personal family ornaments can make it hard for buyers to see past them to the gorgeous home underneath.

 

 

Staging a home is proven to yield a high ROI at resale. It helps buyers connect emotionally with a home and imagine themselves living there. With the right approach, your holiday décor can provide that extra special touch to make a buyer fall in love and write an offer.

 

Want to sell your Long Island home? Work with an expert team who knows how to get a home sold quickly and at a great price, no matter the time of year. Give us a call to work with the Pesce-Lanzillotta Team and see how our experience will benefit you!

 

Happy Holidays!

Nov. 17, 2022

Mortgage Interest Rates Corrected After the Midterm Elections – What’s Next for the Long Island Housing Market?

 

Midterm elections often mean hotly contested races for seats in the House and Senate and polarizing issues that sweep the country. Though this year’s midterm elections were no exception to the norm, they did offer one unusual result – mortgage interest rates have corrected a bit since November 8th, 2022. After topping 7% in recent weeks, rates for a 30-year-fixed-rate mortgage dropped to 6.9%. That’s a decline of 39 basis points, a significant change from the previous week!  

 

While interest rates are creeping up again as of writing, it’s important to understand that interest rates respond to a variety of economic factors. The Federal Reserve is responsible for setting the standard interest rate, which they’ve been steadily increasing over the course of the year to try to curb rampant inflation in the US economy. The Fed raised the standard interest rate again on November 2nd to a “target range of 3.75%-4%, the highest level since January 2008.” With the latest economic data available in the October inflation report, we could see the Fed raise interest rates one more time before the year is through! Although there isn’t a direct correlation between the standard interest rate and mortgage interest rates, when the Fed raises rates, mortgage rates tend to rise as well.

 

What does all this mean for the Long Island housing market? Some buyers are seeking to use the recent drop in interest rates to their advantage and scrambling to lock in a great rate now. That means buyers who may have been sitting on the sidelines the last few months are back out and touring homes on Long Island.

 

As a seller or prospective seller, having your home on the market during the holidays this year may work to your advantage. Buyers who spend time looking at properties in between holiday parties and family dinner are generally very serious. If they find the right home, they’re usually ready to put in a solid offer and move forward in the purchase process. Sometimes these buyers have to move because of a job relocation or upcoming family changes, but others just want to take advantage of current market conditions.

 

If you had plans to make a move in 2023, you may want to consider moving up your home purchase or sale. While home prices have corrected somewhat over recent months, median home sale prices in most Long Island neighborhoods still sit at year-over-year highs! Listing your home now means you have the opportunity to get the most money possible for your home. Home values aren’t expected to appreciate significantly in 2023, so there may not be an advantage to waiting.

 

Similarly, if buying a Long Island home is on your mind, buying over the holidays can be a great choice. There’s less competition from other buyers and sellers are generally open to negotiating in order to go under contract and close before the end of the year. Some sellers are feeling the sting of being on the market longer than they planned, which can make them very amenable to working with a buyer who makes a strong, fair offer.

 

Buying or selling a home during the holidays can be a bit more challenging with all of the holiday business closures that can affect inspections, repairs, and closing timelines, but we have the proven experience, skills, and tenacity to see you through to the closing table. We’ve successfully put buyers and sellers under contract at all times of the year and our team is ready to work with you now! If you’ve had any thoughts of making a move in the next six months, reach out to us today to discuss your plans. We’ll help you decide if it makes sense to make a move now or wait until the New Year.

Oct. 18, 2022

Impact of Rising Interest Rates on the Long Island Housing Market

Every week it seems, there’s a headline about rising interest rates or new pressures on prospective home buyers. The housing market is changing, and not just on Long Island. Around the country, buyers are facing affordability challenges even as they hurry to lock in a loan before interest rates rise again.

 

The pandemic ushered in a booming housing market as people decided to make big life changes and take advantage of historically low rates. Overwhelming buyer demand pushed home prices to new heights, a trend that continued for more than two years. Now, the market is correcting and coming back down to Earth as the Fed continues to try to rein in inflation.  

 

Last year at this time, interest rates for a 30-year fixed rate loan were around 2.5-3%. As of writing, Bankrate reports the average interest rate for the same loan is just over 7%! That’s a big change in just twelve months and it’s having a real impact on our local market.

 

How Rising Interest Rates Impact Buyer Affordability

 

Interest rates have a direct impact on what prospective home buyers can afford to borrow. Simply put, the higher the interest rate, the higher the monthly payment a buyer must make on the same priced house.

 

Here’s a basic example* for a home with a purchase price of $700,000.

 

-Assuming you put down 20%, your loan amount would be roughly $560,000. With an interest rate of 3.5%, your monthly mortgage payment would be about $2,515, not including taxes and fees.

 

-However, if you put down 20% on that same house to purchase it at the same price of $700,000, but the interest rate on your loan is now 7%, your monthly mortgage payment would now be about $3,726 per month!

 

That means a buyer who could have afforded to buy a home at $700,000 a year ago is likely looking in a new, lower price range to ensure they can still comfortably make their mortgage payments each month.

 

*Numbers used are given as example only. For a true picture of what you can afford in today’s market, please reach out to us to get connected to one our preferred qualified lenders who can accurately help you assess your situation.

 

What’s Next for Long Island Home Buyers

 

If you’re looking to buy a home on Long Island in the next six months, does this mean you should hold off and wait for home prices and interest rates to come down?

 

Absolutely not.

 

If you are qualified and ready to purchase a home, now is the time to make your move. Despite pressure from interest rates, home prices are not expected to significantly decline in the next year. In fact, most experts are predicting that prices will appreciate at a rate of about 2.5%. This is a notably slower rate of growth than we’ve experienced over the last two years, but it is still growth.

 

Similarly, interest rates are not predicted to decline either. That means your best chance of securing a great rate for a home in today’s market is to buy now. If interest rates do decline in the future, you can always refinance at that time. 

 

What’s Next for Long Island Home Sellers

 

Buyers are feeling the affordability squeeze, yet the Long Island market continues to hold steady. We’re not seeing the frenzy of the past few years, but buyers are still out looking and offering on homes.

 

Our biggest advice is to adjust your expectations. Multiple offers within hours and sky-high sales prices are likely over for now. With less competition from other buyers, people are taking their time and making offers they feel are reasonable given the affordability challenges. It’s a new market and that requires a new mindset. Be smart about who you work with to sell your home. Choose a team that has a proven record of success in any market. Pricing, marketing, and professionalism will be the key factors to a quick and smooth sale at a great price.

 

 

Whether you’re looking to buy, sell, or both, the Pesce & Lanzillotta Team is your resource for Long Island real estate. We have the skills and proven strategies to make your next move successful. Reach out to us today to take the next steps this fall.

Sept. 21, 2022

Putting Your Home on the Market Soon? 5 Ways to Make Buyers Fall in Love

Are you thinking of selling your Long Island home and worried you missed out on the summer market? Despite rising interest rates, we are still seeing a strong buyer presence on Long Island. Multiple offer scenarios may be less common, but buyers are seeing the opportunity of purchasing a home now and locking a comparatively low interest rate on their mortgage.

 

However, properties are staying on the market longer which means pre-listing preparation is more important than ever. It’s not enough to simply list your home for sale. You must take steps to ensure it’ll show in its best light. When you choose to sell with the Pesce & Lanzillotta Team, we’ll work with you to get your home ready for the market. We know what appeals to today’s home buyers – it’s one of the ways we ensure our clients sell their homes for the most money possible!

 

If you are looking to get ahead and start preparing your home to sell now, consider these five steps to make buyers fall in love.

 

Update Your Landscaping

 

Go beyond mowing the lawn and pulling weeds. If your landscape hasn’t been updated or refreshed in the last couple years, now is the time. It’s amazing what fresh bark, mulch, or gravel can do for a property. Trim trees and bushes so they look neat and well-manicured. Consider planting some seasonal flowers or bringing in a few potted plants to dress up your porch or entryway. Look for autumnal colors – reds, yellows, golds, and browns.

 

 

Take New Photos

 

If your home has been on the market before or you’ve previously had professional photos taken, it can be tempting to just use the imagery you already have. However, we work with excellent photographers and videographers who truly know how to showcase a home in the right light. We will determine what type(s) of media would be best for your home, from daytime, sunset, and night photography to aerials, drone video, and 3D tours.

 

 

Capture the Changing Seasons

 

While every home looks great in the late spring and summer when the grass is green and flowers are in bloom, don’t overlook the potential of autumn and winter. Seeing a home during the colder seasons can strike just the right notes of warmth, coziness, and comfort. No matter what the season, we work with our photographers and videographers to determine the right day to capture your property based on the weather. You don’t have to wait for spring to sell!

 

 

Stage Your Home to Sell

 

Although it can be challenging if you’re still living in your home, staging can go a long way toward helping buyers successfully imagine themselves living in your property. Our professional stagers use high-end furnishings and décor that is current and on-trend. Additionally, depersonalizing your home is a must. Temporarily remove family photos, toys, artwork, and crafts. The goal is for a buyer to feel as if they’ve stepped into a model home. Once you’re moved into your new property, you can unpack and proudly display these items again.

 

However, if physically staging or decluttering your home just isn’t a possibility, virtual staging services do exist! While it can’t duplicate the effects of seeing real furniture in a room, virtual staging is proven to help buyers reimagine a space as their own with new furniture and décor.

 

 

Consider Open Houses

 

Open houses aren’t a fit for every seller, but if you’re at all considering them, fall is a great time to do it! With so many holidays coming up, many people have extra time off of work to go look at properties. Additionally, themed open houses can be fun and get buyers excited about living in your home.

 

As we creep closer to the holidays, you may be tempted to keep your home off the market in order to decorate for the season, but tasteful, simple holiday decorations in listed homes can go a long way. Seeing a home with a table set for Thanksgiving, a Christmas wreath on the door, or a Hanukkah menorah on the mantle can help buyers imagine celebrating here with their own families next year. Just make sure your decorations aren’t overpowering your home’s special and unique features.

 

 

Do you have questions about the Long Island real estate market? Wondering if now is the right time for you to sell? Please give us a call or contact us anytime to discuss your next steps with the Pesce & Lanzillotta Team!

Aug. 17, 2022

How the Recent Fed Rate Hikes Could Impact the Long Island Housing Market

In recent weeks, the Federal Reserve raised the standard interest rate seventy-five basis points or 0.75%. Headline news in most economic and business journals, the immediate impact on the housing market was less notable. Though with the Fed projected to raise rates again in September, we are watching the trends closely to ensure we provide the best, most updated guidance for our clients.

First, it’s important to understand that the standard interest rate is not the same as a mortgage interest rate. Though the choices the Fed makes do impact interest rates, there is a lot more that goes into the rate you get for your loan than that. Typically, when the Fed raises interest rates, mortgage interest rates do increase. However, that isn’t always true and in recent weeks, we have seen mortgage rates decrease slightly. Good news for prospective home buyers! The lower your interest rate, the more buying power you have. Though with rampant growth in consumer prices affecting nearly every sector of life and home prices on Long Island sitting near record highs, dollars don’t stretch as far as they used to.

Concerns about escalating costs are the driving force behind the Fed’s recent decision to step in and raise rates to try to curb inflation. Economic indicators show that it does appear to be working – though perhaps not quickly enough. The August 5th report from the Labor Department showed that consumer prices only rose “8.5% in the 12 months through July, down from the 9.1% increase in the year to June that had marked the highest inflation rate since 1981.” That opens the door for another similar rate hike in September. According to a recent article from Reuters, “Chicago Fed President Charles Evans said he believes the Fed will likely need to lift its policy rate to 3.25%-3.5% this year and to 3.75%-4% by the end of next year, in line with what Fed Chair Jerome Powell signaled after the Fed's latest meeting in July.”

If you’re planning to buy a home on Long Island before the end of the year, or sell, it’s important you have all the facts to guide your decision-making. We likely will see a slight to moderate increase in interest rates off the back of all this movement from the Federal Reserve. However, with buyer demand still strong, it’s unlikely to deal a strong blow to the Long Island housing market.

What we’re likely to see is a doubling-down on the shifts we’re already noticing in the market: homes taking longer to sell, increased price reductions, and less of the frenzy that has been the reality here since mid-2020. Buyers will continue offering on homes and properties will still change hands. Just don’t expect record-setting prices for every home sale. We are traveling towards a more normal housing market, something we haven’t really seen here on Long Island since 2019.

There are steps you can take to set yourself up for success in the changing market. For buyers, partnering with an experienced real estate team that gets proven results will be key. You’ll also want to consult with a great lender who help you explore all your options, so you get the best possible rate for your loan. Finally, a little patience still goes a long way. In an adjusting market, some sellers may need time to come to terms with the new market value of their property. Persistence and expert negotiation will matter more than ever. You’ll also want to make a move sooner rather than later so you can lock in a great rate. Now is the time to get really clear on what you must have in your next home and what you’re willing to improve or modify after closing.

For sellers, pricing your home correctly from the start is critically important. Listing your home too high increases the chances your property may sit on the market. While we are heading toward the traditional “second wave of real estate” activity on Long Island, the fall market won’t last forever. Partner with a great agent, be realistic with your expectations, and be open to working with the other side to ensure you get a great price for your home. We bring years of experience and out-of-the-box marketing tactics to every home sale and many of our clients have sold for record-high prices in their neighborhoods, no matter what is going on with the economy.

Let us show you what we can do to make your Long Island purchase or home sale a success. Click here to get in touch with us or give us a call anytime to get connected with our award-winning team!

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!