Nassau County median home price jumps to record $752,000
The median home price in Nassau County set a record in February, at $752,000 among single-family sales, according to new data from OneKey MLS.
The record came as few homes changed hands last month, with those that did commanding a premium because of Long Island’s prolonged shortage of houses on the market.
The median price in Nassau was 15.7% higher than the same figure a year ago. In Suffolk County, the median price among single-family homes rose 9.3% year over year to $600,000.
“You're seeing prices consistently be high even during what would typically be a seasonally low season,” said Richard Haggerty, CEO of OneKey MLS. “ … The buyers are out there, and they're keeping the prices high.”
Home prices have climbed despite stubbornly high mortgage rates, which have increased the monthly costs to own a home. The average 30-year fixed mortgage rate was 6.78% in February. Two years ago, it had averaged 3.76% during that month, according to Freddie Mac.
“The cycles that have always been [there] are just not applying now,” said Meg Smith, an associate broker at Daniel Gale Sotheby’s International Realty in Bay Shore. “It’s just been a completely different scenario since COVID hit and since the interest rates went up. Usually when the interest rates go up, prices come down, but we’re just not seeing that.”
A major driver of that trend is a low number of homes for sale. While there were nearly 1,900 new listings that hit the market last month, by the end of February there were still about 22% fewer homes for sale on the Island than at the same time a year ago.
Long Island still has “super low inventory with a lot of buyers waiting for the right property to come up,” Smith said.
Higher mortgage rates have affected the pace of sales. February marked one of the lowest volume months for home sales in the past few years. The number of single-family home deals in Nassau County fell 3% to 479, while sales in Suffolk dropped 8.2% to 627 compared with February 2023.
February marks the second month OneKey MLS is reporting home sales under a new methodology, which breaks out sales by category, including single-family home sales, condos and co-ops.
OneKey MLS confirmed the Nassau median price for single-family homes is the highest in the past 10 years. Before that time, local home prices were well below current levels.
Condo prices have risen too, with the median among 36 sales in Nassau County selling for $620,000, or 13.8% more than the median last year. In Suffolk, the median condo price among 50 sales was $462,000, which was a year-over-year increase of 15.5%.
Homeowners who’d like to upgrade often change their minds when they see how much they would need to pay at today’s prices and mortgage rates, said Yadlynd Cherubin, an associate broker and team leader at Keller Williams Greater Nassau.
“When they see the payments, it’s a little scary for them,” Cherubin said. “They know what they’re paying now and they’re comfortable.”
Cherubin said some buyers have been hesitant to make a move as they anticipate mortgage rates falling later this year. But she has started to see more activity, with more than 20 buyers visiting an open house she held last weekend for a listing in Freeport.
“A lot of buyers were expecting rates to drop,” she said. “ … Some buyers want to have lower rates but have a need and are pulling the trigger regardless of rates.”
Mortgage rates have fallen from a peak of nearly 8% last fall but have moved little so far this year. As inflation has slowed, the Federal Reserve has signaled it may cut its benchmark interest rate later this year. While the Fed doesn’t directly affect mortgage rates, they tend to fall during periods of lower inflation.
U.S. consumer prices rose 3.2% in the 12 months through February, and inflation has remained above the Federal Reserve’s 2% target, the Labor Department reported Tuesday.
“For homebuyers and sellers, this news brings on some nerves,” Chen Zhao, who leads the economics team at Redfin, wrote Tuesday. “But we still expect mortgage rates to fall gradually this year as the Fed cements its outlook for three rate cuts starting in June.”
As the weather warms up, greater numbers of homeowners tend to list their properties. It remains an open question whether the potential for falling mortgage rates will lead to more listings — and better options for buyers, said Smith, the Bay Shore broker.
“The next 30 to 45 days will be very telling as to where the market is headed,” Smith said. “If you were a racehorse, it’s like everybody is in the gate and waiting for the gate to open.”
The median home price in Nassau County set a record in February, at $752,000 among single-family sales, according to new data from OneKey MLS.
The record came as few homes changed hands last month, with those that did commanding a premium because of Long Island’s prolonged shortage of houses on the market.
The median price in Nassau was 15.7% higher than the same figure a year ago. In Suffolk County, the median price among single-family homes rose 9.3% year over year to $600,000.
“You're seeing prices consistently be high even during what would typically be a seasonally low season,” said Richard Haggerty, CEO of OneKey MLS. “ … The buyers are out there, and they're keeping the prices high.”
WHAT TO KNOW
- The Nassau County median sale price for single-family homes reached a record $752,000 in February, increasing 15.7% compared to the same month a year ago.
- In Suffolk County, the median price rose 9.3% from last year to $600,000.
- Sales activity was low in February, with agents counting on the arrival of spring to bring new listings.
Home prices have climbed despite stubbornly high mortgage rates, which have increased the monthly costs to own a home. The average 30-year fixed mortgage rate was 6.78% in February. Two years ago, it had averaged 3.76% during that month, according to Freddie Mac.
“The cycles that have always been [there] are just not applying now,” said Meg Smith, an associate broker at Daniel Gale Sotheby’s International Realty in Bay Shore. “It’s just been a completely different scenario since COVID hit and since the interest rates went up. Usually when the interest rates go up, prices come down, but we’re just not seeing that.”
A major driver of that trend is a low number of homes for sale. While there were nearly 1,900 new listings that hit the market last month, by the end of February there were still about 22% fewer homes for sale on the Island than at the same time a year ago.
Long Island still has “super low inventory with a lot of buyers waiting for the right property to come up,” Smith said.
Higher mortgage rates have affected the pace of sales. February marked one of the lowest volume months for home sales in the past few years. The number of single-family home deals in Nassau County fell 3% to 479, while sales in Suffolk dropped 8.2% to 627 compared with February 2023.
February marks the second month OneKey MLS is reporting home sales under a new methodology, which breaks out sales by category, including single-family home sales, condos and co-ops.
OneKey MLS confirmed the Nassau median price for single-family homes is the highest in the past 10 years. Before that time, local home prices were well below current levels.
Condo prices have risen too, with the median among 36 sales in Nassau County selling for $620,000, or 13.8% more than the median last year. In Suffolk, the median condo price among 50 sales was $462,000, which was a year-over-year increase of 15.5%.
Homeowners who’d like to upgrade often change their minds when they see how much they would need to pay at today’s prices and mortgage rates, said Yadlynd Cherubin, an associate broker and team leader at Keller Williams Greater Nassau.
“When they see the payments, it’s a little scary for them,” Cherubin said. “They know what they’re paying now and they’re comfortable.”
Cherubin said some buyers have been hesitant to make a move as they anticipate mortgage rates falling later this year. But she has started to see more activity, with more than 20 buyers visiting an open house she held last weekend for a listing in Freeport.
“A lot of buyers were expecting rates to drop,” she said. “ … Some buyers want to have lower rates but have a need and are pulling the trigger regardless of rates.”
Watch for spring market
Mortgage rates have fallen from a peak of nearly 8% last fall but have moved little so far this year. As inflation has slowed, the Federal Reserve has signaled it may cut its benchmark interest rate later this year. While the Fed doesn’t directly affect mortgage rates, they tend to fall during periods of lower inflation.
U.S. consumer prices rose 3.2% in the 12 months through February, and inflation has remained above the Federal Reserve’s 2% target, the Labor Department reported Tuesday.
“For homebuyers and sellers, this news brings on some nerves,” Chen Zhao, who leads the economics team at Redfin, wrote Tuesday. “But we still expect mortgage rates to fall gradually this year as the Fed cements its outlook for three rate cuts starting in June.”
As the weather warms up, greater numbers of homeowners tend to list their properties. It remains an open question whether the potential for falling mortgage rates will lead to more listings — and better options for buyers, said Smith, the Bay Shore broker.
“The next 30 to 45 days will be very telling as to where the market is headed,” Smith said. “If you were a racehorse, it’s like everybody is in the gate and waiting for the gate to open.”
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.
Much needed rain for LI ... Mattituck fire latest ... Penny case resumes ... Bethpage cleanup cost
Much needed rain for LI ... Mattituck fire latest ... Penny case resumes ... Bethpage cleanup cost
