Thinking of buying or selling a home on Long Island this year? While it’s still February on the calendar, our mild winter weather and low interest rates have propelled the spring real estate market forward a few months.
We began the year with low interest rates and this week, average rates for fixed mortgages dropped again to a three-year low. Good news for both buyers and sellers! When mortgage rates are low, buyers can afford to buy more expensive homes. Increased affordability for buyers helps home values increase. When there are more buyers who can afford to buy your home, it increases the chances you’ll receive offers at or over asking price as buyers compete to get their offer accepted. As interest rates edge up, it cuts into what a buyer can afford and pushes home values down.
Current low interest rates have driven people into the market. We’re seeing many buyers out in the market looking for homes, especially at the non-luxury price points (under $850,000). However, housing inventory is currently low and there are not many homes on the market for them to buy, which means many properties are selling quickly and over asking price.
At the other end of the price spectrum, the luxury market is moving a bit slower. While prices are still strong overall, they have softened a little over the last year. Homes are also spending more time on the market.
Below you’ll find current market reports for both Nassau and Suffolk Counties, along with our predictions for where the spring real estate market is headed. To request a custom report for your neighborhood or ZIP code, contact us.
Spring 2020 Market Outlook for Nassau County
In January, the median price for a single-family home in Nassau County was $550,000. That’s up 1.8% from last year at this time. Condos and co-ops also posted strong price gains. The median price for a condo was $545,000, an increase of 4.8% over last year. However, co-ops experienced the largest price jump, increasing 10.1% to $258,750! Click here to view our in-depth January market report for Nassau County.
With lots of buyers in the marketplace and interest rates not predicted to significantly increase, we expect to see home prices continue to post year-over-year gains through the spring.
Spring 2020 Market Outlook for Suffolk County
As in Nassau County, properties in Suffolk County posted year-over-year gains in January. The median price for a single-family home increased by 5.4% to $410,000. For condos, the median price was $324,000. This is an increase of 6.2% from last year. Finally, co-op prices jumped 7.7% to $145,500! Click here to view our January market report for Suffolk County.
As in Nassau County, low interest rates, low inventory, and plenty of buyers are all indicators that prices will remain strong through the spring months.
Long Island Luxury Real Estate Market Spring Report
We define luxury real estate as those properties listed at or above $850,000. As mentioned above, the Long Island luxury real estate market is off to a slow start for 2020. In Nassau County, the median price for a single-family home was down 0.4% to $1,145,000. The median price for a condo also fell 0.3% to $1,146,351. In Suffolk County, the median price for a single-family home was actually up 4.5% to $1,150,000, but condos fell 0.5% to $950,000. Click here to view individual reports for luxury real estate in Nassau County and Suffolk County.
While the Long Island luxury market likely will remain lukewarm this spring, home prices overall should remain strong.
Thinking of moving this spring or summer? Start your home search here – we have all properties listed for sale in the Long Island area. If you’re a seller, we offer free home valuations. Just click here to request your online valuation or reach out to us for a custom report. With millions of dollars in Long Island real estate sold, we are your trusted resource whether buying or selling!
The Pesce & Lanzillotta Team, at BHHS Laffey International Realty