Have you been holding off on selling your Long Island home due to low inventory? Need to make a change, but not sure you can find a new home that suits your needs? Don’t let the fear of the current market keep you from doing what’s best for you and your family. There are some great benefits of selling your Long Island home when inventory is low!

Long Island Homes Are in High Demand

Despite rising interest rates, homes are still in high demand across the country and especially here on Long Island. While rates for a 30-year-fixed-rate loan have recently crept up to 8%, most buyers don’t seem to be daunted. In the latest report from ShowingTime, home showing traffic was up more than 19.7% from last year. Although the market experiences a natural slowdown this time of year, there are no signs that buyers are planning to give up their search either now or in the New Year. If we look at the number of offers a typical home that is priced well and adequately prepared for the market receives on Long Island, we see signs that there are still more active buyers than available homes to buy. If you need to sell, your home is likely to be met with a lot of interest this fall.

Many Home Sellers Are Closing At or Over Asking Price

Several notable real estate and economic experts recently revised their end-of-year home appreciation predictions. The expected home price softening simply didn’t happen. Now experts believe we’ll see annual price gains of up to 6% by the end of 2023.

Why the change? High buyer demand and low inventory have continued to push prices. We saw the return of multiple offers here on Long Island this summer, with some sellers closing over asking price and setting new records in their respective communities. These aren’t the sky-high home sales we saw during the COVID years but compared to the last years of the “normal market” which were 2017-2019, most sellers are earning a great ROI on the sale of their homes right now.

Most Long Island Properties Are Selling Quickly

Another benefit of selling your Long Island home when inventory is low is that many homes are selling quickly. According to new data from the National Association of Realtors (NAR), 69% of listed homes sold in less than a month with the average home receiving 2.6 offers. The bottom line is that a home that is priced and marketed well is likely to receive a great offer quickly. Selling at this time of year also has the added benefit that most people want to be closed and moved in by the holidays, incentivizing all parties to get through escrow quickly.

Who you work with is everything. If you’ve seen homes that are sitting in your neighborhood, the issue is likely with the agent’s pricing, preparation, or marketing. Our team continues to set records for our clients and get their homes sold quickly. Reach out to find out what we do differently at the Pesce & Lanzillotta Team!

Whether you’re still on the fence about selling or are ready to move forward, we’re happy to answer any questions you have. As top real estate agents on Long Island, we have the pulse of the local housing market along with the winning strategies and proven results to ensure you have a smooth and successful home sale. Contact us today!

At the beginning of 2023, many experts predicted that home prices would dip at the end of the year. After months and months of sustained home price growth, it seemed inevitable that this would be the year where we’d see a small change in home prices.

However, 2023 hasn’t gone as predicted. With the Fed electing to raise the Federal Funds Rate four times already in 2023, mortgage interest rates have risen from about 6.5% at the beginning of the year to 7.5% at the time of writing for a 30-year fixed-rate loan. As a result of rising interest rates, many homeowners have decided to stay put, driving down inventory across the country. In markets like Long Island where inventory has been ultra-low since the start of the pandemic, it’s adding an extra challenge for buyers who still want and need to buy a home. For the most desirable properties, we’ve seen multiple offers and bidding wars return, which is continuing to push prices up, not down as experts predicted earlier in the year.

This scenario isn’t unique to Long Island. Now, leading real estate and economic experts have revised their national home price forecast for Q4 of 2023. Despite some differences in opinion, all are predicting that home prices will either hold steady or continue to grow through the end of the year! This is the official stance of Goldman Sachs, Morgan Stanley, and more. Zillow and the American Enterprise Institute are predicting the biggest gains in home price appreciation, with 5.5% and 6% respectively.

Where the Long Island Housing Market May Go from Here

While it’s still too soon for an official 2024 housing market forecast, there are a few different scenarios that could unfold to affect the Long Island housing market in the months to come.

The Federal Reserve is expected to meet three more times before the end of the year, with another meeting set for later in September. At the September meeting, the Fed is expected to raise rates again. That likely will bump mortgage rates just a little bit higher, though even a quarter percentage point change can make a difference for buyer affordability. It certainly won’t incentivize many sellers to list when they have a low mortgage rate locked in right now.

Still, other experts predict that we are nearing the Fed’s inflation target which has been what’s propelled them to keep raising the standard interest rate. Once we meet the target, the landscape will change. We could see interest rates start to drop a bit in 2024, though when is still unknown.

If interest rates come down, that might spur some homeowners into finally putting their homes on the market. More inventory would be a great thing for Long Island real estate. If inventory grows significantly, we also might see home prices come down in the next few years. However, any change is likely to be mild rather than drastic.

What does that mean if you’re a prospective seller or buyer on Long Island? As always, the right time for you to move is the right time to move. Right now, home prices are up so if you’re thinking of selling, you’ll likely get a great price for your property. For buyers, interest rates may be high right now, but you can always refinance in the future. In addition, as we move toward winter, there will be less competition for available homes which could make it easier to buy despite the tight inventory.

Whether buying, selling, or investing, the Pesce & Lanzillotta Team has the experience, negotiating skills, and record of proven success to help you make the most of today’s market conditions. Give us a call or reach out here to take the next steps.

The weeks after Labor Day traditionally bring a “second wave” of real estate to the Long Island market. Though with high interest rates, sustained inflation, and low inventory, can we expect to see the same trend hold true this fall?

Our team had sold more than a billion dollars in real estate combined. We’ve seen hot markets and slow markets. We’ve helped our clients navigate the challenges of the pandemic years. Though no one can predict the future, we can use market trends and data to make educated predictions about what will happen with Long Island real estate this fall.

Interest Rates Will Continue to Present Challenges

News broke over the weekend that interest rates had officially reached a twenty-year high. According to Realtor.com, mortgage rates averaged “7.09% for a 30-year fixed-rate home loan as of Aug. 17.” Realtor.com also reported that home prices have risen slightly compared to this time last year.

Although interest rates are high, they are far from the highest they’ve ever been. Still, it creates affordability challenges for many home buyers. When interest rates are higher, your purchase dollars don’t stretch as far. That can be the difference between getting a home in your dream neighborhood and settling for something you can afford.

In addition, many homeowners have previously locked an interest rate that is lower than today’s rate. Unless they have a good reason to sell, many prospective sellers will elect to stay where they are and maintain their current mortgage interest rate. This is a big factor in what’s keeping inventory low.

Though Home Buyers May See Some Relief This Fall

No matter what’s happening with the economy or interest rates, many people try to time their move to occur during the spring and summer months. Even people without children tend to move during the warmer months when the weather is favorable.

If you are a prospective buyer, continuing your home search through the months of September, October, and November could pay off. Competition for the low inventory of homes for sale over the summer helped fuel multiple offer scenarios and quick sale times. While buyers should still be prepared to move fast this fall, you’ll likely stand a better chance of securing a great property.

Our Predictions for Long Island

While this year’s “second wave of real estate” on Long Island likely won’t be as pronounced as in recent years, inventory has slowly increased over the past few months. With interest rates spiking again and less determined buyers putting their search on hold, we should see Long Island housing inventory increase relative to the number of buyers who are still actively looking. That’s good news for both buyers and sellers, presenting opportunities to make a fair deal and quick sale before year’s end.

Need to move between now and the end of the year? Whether buying or selling, the Pesce-Lanzillotta Team is here to help. Contact us to plan your next steps today!

Low inventory conditions persist in the Long Island housing market. If you've been thinking of moving this fall but aren't sure if it makes sense to sell your home, stay, or rent it out, we'll help you work through the potential upsides and downsides so you can make the best decision.

For more personalized help, reach out to us at the Pesce & Lanzillotta Team today!

Selling Your Long Island Home

Despite a lack of available homes, we've helped many sellers make a move this year already. Who you work with always matter, but in a market with few homes for sale you need an agent who is not only diligent and determined, but who has the network and contacts to find your next home opportunity. Our award-winning team is a leader in Long Island real estate, representing sellers and buyers from entry-level properties to luxury homes. We pride ourselves on the strong connections we've made with other agents, vendors, and community members. If you want to move but aren't sure if you can find a suitable replacement property, let us show you what we will do to make it happen!

Renting Your Long Island Home

Instead of selling your Long Island home, you might be thinking of renting it out for a year or two while you wait for the market to change. Renting your home can be a viable strategy, particularly if you think there's a chance your needs will change again in the future. Sometimes work or family call our clients away from Long Island, but when those obligations are done, it can be nice to know your dream home is still waiting for you.

However, renting does come with some downsides. You'll need to decide if you want to manage your rental yourself or hire a property management company, which comes with a management fee attached. In addition, you'll need to ensure you can rent your property at a high enough rate to offset your mortgage and upkeep expenses for that home while you secure a second property for yourself to live in.

Staying in Your Long Island Home

Not sure about selling your Long Island home, but don't want to rent it out either? If your property isn't meeting your current needs and you have some extra money to invest, you might think about remodeling your home instead of selling. Home additions are a popular choice for people who feel their home is too small. If your property is too much upkeep, you might think about changing your landscaping to more hardscape or other low-maintenance options. Hate that your principal bedroom is upstairs? A room conversion on the main level may be a great option to explore instead of selling your home.

If you need a referral for a local contractor, get in touch – we've worked with some great professionals in the Long Island market that we would be happy to recommend.

We are here to help you with all your Long Island real estate needs, whether selling, buying, or investing. If you're not sure what move makes the most strategic sense, let us help. Click here to contact us or give us a call anytime!

Summer has arrived on Long Island and when it comes to the housing market at least, things look quite a bit different than they did last year. Month after month of red-hot growth has noticeably cooled as inventory remains low and interest rates continue to impact affordability. Yet if you've been thinking of making a move, it's still a great to list your home on Long Island. In our conversations with our clients, we've discovered there are a few main reasons motivating people to put their homes on the market this summer. If any of these resonate with you, don't hesitate to reach out to our team to find out what the Pesce & Lanzillotta Team can do to help you get the most money possible for your property!

Your Lifestyle or Circumstances Have Changed

Did you recently celebrate a high school graduation? Maybe you welcomed a new baby into the family this spring. Perhaps your parents are getting older and you're thinking of bringing them to live with you. Maybe you're planning to retire next year and want to travel. Life is always changing, and the home that's been perfect for you for years can suddenly feel like the wrong fit. Whatever lies ahead for you and your family, your home should be a place of refuge rather than a stressor. If you need to make a change, click here to see what's on the market now or reach out to our team for personalized help to plan your next steps. 

You Want to Be Closer to Family or Friends

Many people moved during the height of the pandemic. Some people moved out of the city to properties with more space and more land on Long Island. Others decided to downsize out of the family home they've had for decades. Now that the pandemic has come to an end, maybe you're missing the community you had before or want to move closer to family and friends. If you're feeling disconnected in your current neighborhood, this summer might be the time to think about making a change. The Federal Reserve recently announced they are pausing interest rate hikes, so we can expect mortgage rates to stay stable this summer. Wondering what you can afford in today's market? Reach out – we'll put you in touch with one of our trusted lender partners.

You'd Like to Move into a Different School District

Many of the clients we work with during the summer are families looking to get settled into their next home before the school year starts. We have several excellent school districts on Long Island and even for people without kids, owning a home in a good school district is a smart idea. Whether your kids are just starting in the public school system, you're looking to switch high schools, or you've had your eye on a private school, we can help you find a great home inside your ideal school district.

You're Ready for a Change

We believe that the right time to sell your home is when the moment is right for you. Markets go up and down. Some favor sellers, some favor buyers. If you're feeling ready for something new, there's no reason to hold onto your home just to try and time it "right." We know how to help you maximize your sales potential in every market!

Check out some of our notable sales at the Pesce & Lanzillotta Team and then schedule an appointment with us to learn how we can help you this summer.

Spring and summer are usually some of the busiest seasons for the Long Island housing market. When the weather warms up and the school year draws to an end, many people make plans to move, whether it’s purchasing their dream home on the water, downsizing to a smaller property, or relocating to or from Long Island.

Rising interest rates and some economic uncertainty have continued to put stress on the housing market across the country. Q4 of 2022 presented a notable shift in a real estate market that had been red hot for months on end. On Long Island, this shift has created a particularly tight market with few properties available for purchase. Current interest rates sit at about 6.5% for a 30-year fixed-rate loan. Many homeowners however have a 2.5-3% interest rate on their property, owing to nearly a decade of low rates. For people who don’t absolutely have to move, today’s rates are definitely curbing home sales.

So, what can you expect from the Long Island housing market this summer? Here are our predictions of what the landscape will look like for both buyers and sellers.

Buyers Will Face a Competitive Market

Inflation is slowing down, which is the good news. However, the Fed isn’t expected to dial back its efforts to balance the economy. For home buyers, don’t expect interest rates to drop significantly, or at all, this summer. Six and seven percent interest rates appear to be the new normal. That means home buyers today have less buying power than they did a year ago. There are also fewer homes available at every price point. Multiple offer scenarios are possible for well-priced homes in the most desirable neighborhoods on Long Island.

Don’t let this scare you out of making a move though. We believe in educating our clients about the realities of the market and the potential challenges they’ll face. Now more than ever, who you work with matters. At the Pesce & Lanzillotta Team, we continue to set sales records and successfully close homes. We represent both buyers and sellers and know how to help you get to the finish line no matter the market.

Sellers Will Need to Make Choices

If you’ve been thinking of selling your Long Island home and purchasing something else, the reality is that you probably have a better interest rate on your current home. That said, there are still advantages to listing your home in today’s market.

First, buyer demand remains strong. We saw many buyers come back to the market at the tail end of winter and with few homes available, many serious buyers still haven’t purchased. Second, while home prices have decreased somewhat from last year at this time, they haven’t dropped significantly. If demand holds steady, home prices will likely hold steady as well. Long Island home prices may even rise as buyers compete for the few homes that are available. Third, you may have the option to use some of your equity and buy down the rate on your new home loan. This is a strategy available from some lenders and may be a great option for you. We can introduce you to a great lender to discuss – just reach out to us here. Fourth, Long Island traditionally experiences a “second wave of real estate” after Labor Day. While most markets around the country wind down significantly at the end of summer, we often see a spike in purchases and sales at the beginning of fall. If you’re not ready to list right now, selling later in the summer could still yield great results.

We would love to share what our team does differently to help our clients achieve their goals whether buying or selling a home on Long Island. Get in touch with us today to take the next steps!

Winter is fading, the seasons are changing, and we’re seeing more positive news for the Long Island spring 2023 real estate market! While Q4 of 2022 was sluggish and marked by economic uncertainty, Q1 of 2023 is heating up nicely. A drop in interest rates from highs of 7%+ to a more modest 5%+ have contributed to renewed buyer interest, the return of multiple offers, and home price stabilization across Long Island.

Selling in a Normalizing Market

All these positive signs point to the housing market returning to “normal” with normal being a pre-COVID market where sales were brisk, but not frenzied. COVID-19 sent the real estate market into hyperdrive as buyers who were stuck at home decided to make big moves to improve their quality of life. With record-low inventory, Long Island home prices soared between spring 2020 and the summer of 2022.

While we are seeing an overall growth in housing inventory, we still don’t have the numbers to meet buyer demand. As economic uncertainty has eased over the last quarter, along with drops in interest rates, there’s been an uptick in buyer activity in the form of open house traffic, showing requests, and offers. Homes that are priced right are again receiving lots of interest and sometimes multiple offers, though longer market times indicate that these multiple offer scenarios aren’t the norm.

If you are planning to sell your Long Island home this spring, partner with a team that has the proven strategies, tactics, and track record of success to help you sell your home for the most money possible. Our modern and versatile marketing strategies have helped many of our clients sell for record prices – give us a call to find out what the Pesce & Lanzillotta Team can do for you!

Strategies to Buy a Home Now

The recent drop in interest rates is great news if you’re thinking of making a change. The lower the interest rate, the further your dollar will stretch. Even a small change in rates can make a big difference!

While interest rates have recently dropped, don’t expect them to stay that way for the rest of the year. The Fed is still keen on controlling inflation and balancing the economy. Raising the benchmark interest rate is one of the primary ways that make that happen. An increase in the benchmark interest rate doesn’t automatically equal a jump in mortgage rates, but one tends to follow the other.

If you are at all thinking of buying this year, take advantage of today’s lower rates and start your search before the spring home buying season really kicks off. Click here to browse the latest homes for sale on Long Island or reach out to us for personalized help.

The recent drop in interest rates has given the Long Island spring 2023 real estate market a much needed kickstart. Just don’t expect the frenzy of activity from previous years. If you have questions about how you can take advantage of today’s market and sell or buy your next home on Long Island, reach out to get connected to one of our expert team members!

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!

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 8^th, 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 2^nd 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.

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.