Nassau County home prices reach record in July, while Suffolk slips from peak
The median single-family home price reached a record $810,000 in Nassau County last month, as the shortage of houses for sale worsened, pushing prices higher.
That represented an increase of 11.4% compared with July 2023, according to new data from OneKey MLS, the multiple listing service that covers Long Island.
In Suffolk County, more houses have started to become available, and the median sale went for $660,000, marking the first time that figure has fallen from the previous month since January.
Still, the median price in Suffolk was 10% higher than in July 2023, when the median deal fetched $600,000.
The median single-family home price in Suffolk was a record $665,000 in June, according to OneKey MLS, which revised the number downward by $5,000 after additional June sales were recorded that month.
The record-breaking prices have been driven, in part, by not having enough houses to satisfy buyers. More sellers entering the market would slow the pace of price appreciation, said Richard Haggerty, CEO of OneKey MLS.
"My feeling is if we start to get more inventory, those price increases are going to moderate," he said. “... Prices almost need to moderate. We just can’t sustain such dramatic increases that are solely driven by low inventory."
More listings are hitting the market in Suffolk, which had 6% more houses available at the end of July compared with the previous year. But listings in Nassau fell 10% compared with July 2023, when they were already at a low level.
Because deals can take months to close, the July data reflects sales that were negotiated in the spring, said Jared Garcia, an associate broker at Weichert Realtors in Farmingdale. He believes the market has softened some since then, particularly for houses that need work.
"You’re seeing a tale of two markets right now. The really clean homes that are in pristine condition are still getting multiple offers and selling rather quickly," he said. "But buyers are pushing back on some of the houses that might need a little more work. Those houses are starting to stay on the market longer."
The real estate industry has been cheering as mortgage rates have fallen in recent weeks, making borrowing to buy a home cheaper, and rates could move lower if the Federal Reserve begins to cut its benchmark interest rate in September.
The average 30-year fixed rate ticked up slightly in the past week to 6.49% but remains near its lowest level in a year, mortgage giant Freddie Mac reported Thursday.
Some homebuyers have been waiting for mortgage rates to fall farther before they make a move, but that could be a mistake, said Andrew Chrzanowski, a real estate agent at Keller Williams Points North in Woodbury.
"My advice for anybody who has that mindset is it is absolutely not to your benefit to wait for the interest rates to drop because once the interest rates drop, now we have more highly qualified buyers out there … so sellers can charge more money," he said.
Mortgage rates are about a half of a percentage point lower than they were last year but many sellers may not be swayed, said Jessica Lautz, deputy chief economist at the National Association of Realtors.
"Mortgage interest rates may still not be low enough for homeowners with golden handcuffs who have a mortgage [rate] under 4% to make a move — unless there is a compelling reason like a family or job change," she wrote in commentary published online Thursday.
The prospect of falling interest rates could lead to more sales activity toward the end of the year, Haggerty said. Sales have been hampered by the combination of elevated mortgage rates and low inventory but have started to rebound.
There were 1,873 single-family home sales that closed in July across Long Island, which was up 6.4% compared with the previous year
"This could lead to a very strong fourth quarter," Haggerty said.
The median single-family home price reached a record $810,000 in Nassau County last month, as the shortage of houses for sale worsened, pushing prices higher.
That represented an increase of 11.4% compared with July 2023, according to new data from OneKey MLS, the multiple listing service that covers Long Island.
In Suffolk County, more houses have started to become available, and the median sale went for $660,000, marking the first time that figure has fallen from the previous month since January.
Still, the median price in Suffolk was 10% higher than in July 2023, when the median deal fetched $600,000.
WHAT TO KNOW
- The median single-family home price in Nassau County set a new record at $810,000 in July, according to new data from OneKey MLS.
- The median in Suffolk was $660,000 or 10% higher than it was a year earlier.
- Local real estate experts said prices could begin to moderate if more houses hit the market, but available inventory on Long Island remains low.
The median single-family home price in Suffolk was a record $665,000 in June, according to OneKey MLS, which revised the number downward by $5,000 after additional June sales were recorded that month.
The record-breaking prices have been driven, in part, by not having enough houses to satisfy buyers. More sellers entering the market would slow the pace of price appreciation, said Richard Haggerty, CEO of OneKey MLS.
"My feeling is if we start to get more inventory, those price increases are going to moderate," he said. “... Prices almost need to moderate. We just can’t sustain such dramatic increases that are solely driven by low inventory."
More listings are hitting the market in Suffolk, which had 6% more houses available at the end of July compared with the previous year. But listings in Nassau fell 10% compared with July 2023, when they were already at a low level.
Because deals can take months to close, the July data reflects sales that were negotiated in the spring, said Jared Garcia, an associate broker at Weichert Realtors in Farmingdale. He believes the market has softened some since then, particularly for houses that need work.
"You’re seeing a tale of two markets right now. The really clean homes that are in pristine condition are still getting multiple offers and selling rather quickly," he said. "But buyers are pushing back on some of the houses that might need a little more work. Those houses are starting to stay on the market longer."
Mortgage rates fall
The real estate industry has been cheering as mortgage rates have fallen in recent weeks, making borrowing to buy a home cheaper, and rates could move lower if the Federal Reserve begins to cut its benchmark interest rate in September.
The average 30-year fixed rate ticked up slightly in the past week to 6.49% but remains near its lowest level in a year, mortgage giant Freddie Mac reported Thursday.
Some homebuyers have been waiting for mortgage rates to fall farther before they make a move, but that could be a mistake, said Andrew Chrzanowski, a real estate agent at Keller Williams Points North in Woodbury.
"My advice for anybody who has that mindset is it is absolutely not to your benefit to wait for the interest rates to drop because once the interest rates drop, now we have more highly qualified buyers out there … so sellers can charge more money," he said.
Mortgage rates are about a half of a percentage point lower than they were last year but many sellers may not be swayed, said Jessica Lautz, deputy chief economist at the National Association of Realtors.
"Mortgage interest rates may still not be low enough for homeowners with golden handcuffs who have a mortgage [rate] under 4% to make a move — unless there is a compelling reason like a family or job change," she wrote in commentary published online Thursday.
The prospect of falling interest rates could lead to more sales activity toward the end of the year, Haggerty said. Sales have been hampered by the combination of elevated mortgage rates and low inventory but have started to rebound.
There were 1,873 single-family home sales that closed in July across Long Island, which was up 6.4% compared with the previous year
"This could lead to a very strong fourth quarter," Haggerty said.
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
More rain for LI ... Thanksgiving travel ... Penny trial continues ... FeedMe: Holiday pies
More rain for LI ... Thanksgiving travel ... Penny trial continues ... FeedMe: Holiday pies
