As more people purchase homes on Long Island, the supply of available homes is depleting, making prices rise. For January, there were reportedly 22 percent less home available than the same time last year. With the available homes on the market rapidly being taken up, real estate prices have increased more than 7 percent in the last month, reports Newsday.
For January, Suffolk County saw an increase in closed real estate purchases of 9.5 percent compared to the same time last year. Nassau County saw an increase of 4.9 percent.
Jerry O’Neill, owner of Coldwell Banker Harbor Light, told Newsday that many buyers have not even been negotiating the ticket price of the home that they want, since the competition is so high. Many people are buying homes at the ticket price so that they will not risk the loss of a home.
In Suffolk County, the median price for homes last month was $338,250. The third quarter Hamptons sales report for 2016 reported an average sales price of $1,746,413. The current national average is $193,800, according to Zillow.
But buyers beware—while the real estate market is thriving on Long Island right now, mortgage rates are expected to rise in the upcoming year.
- Long Island home prices rise by 7 percent as supply drops [Newsday]
- Hey big spender! The 3Q Hamptons market reports [Curbed Hamptons]
- United States Home Prices & Values [Zillow]