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Last year, the median sale price of a Long Island home was substantially elevated in comparison to the price in 2013, further substantiated by the greater increases in the sale prices of residences in the Hamptons and on the North Fork.
The latest report from real estate brokerage Douglas Elliman and appraisal firm Miller Samuel shows that the median sale on Long Island during 2022 amounted to $600,000; an increase of 66.2% in comparison to the median figure for 2013, which was $361,000. The firms split their data between the Hamptons and North Fork sales and those from the rest of the Island.
In Nassau County, the median increased 63.6% over the span of a decade, reaching a figure of $679,000 in the year 2020. In Suffolk, excluding the East End, the median rose 71% across the decade, culminating in a measurement of $530,000 in the previous year.
In the 25-county New York metro region that consists of Long Island, figures from the Bureau of Labor Statistics reveal that the inflation rate of all items, with the exception of shelter, was 19.2% higher over the 10-year duration.
From 2013 to 2022, excluding the East End, the medium home price on Long Island grew by 66.2%, notably escalating after the outbreak of the pandemic. Especially on the North Fork, the median cost for a home reached an astounding $910,000 in the last twelve months, indicating an increase of 100%. With an ascension in mortgage rates in 2020, the market cooled off for a period, yet, due to recently lowered rates, it may now attract more members of the buying public.
The Long Island 10-year report outlines the noticeable climb in prices prior to the emergence of the COVID-19 pandemic, as well as the even sharper rise in prices from 2020 to 2022.
By the end of 2021, however, the trend in prices for bargained deals had become weaker, with the median fee observed in December being lower than the year prior.
Conversely, within 2022 the median price on Long Island, not including the East End, escalated by 7.1% relative to the prior year, after a 14.3% jump in 2021.
Compared to the rest of the U.S., the median price of existing-home sales in Long Island increased by a comparatively less-impressive 92.5%, rising from a median sales price of just under $324,000 to $622,000.
In comparison to the U.S. as a whole, Long Island's growth in median prices among existing-home sales paled in comparison, growing 92.5%, from a median sales price of approximately $324,000 to $622,000, according to the National Association of Realtors, which does not include new construction sales in its information. The median nationwide had an increase of 96.2%, jumping from nearly $196,000 up to $384,000 over the 2013-2022 period.
In recent years, there has been a consistent dearth of homes available in the Long Island real estate market.
Due to the increased worth of their residences, Long Island homeowners are privileged to be in a prime situation to upgrade or downgrade. They have the option to take the money from the sale of their current house to be used for a down payment for the next one, something first-time buyers are unable to do.
The median cost of a property out east shot up in 2019 to $1.5 million in the Hamptons - an 87.5% rise from 2013. On the North Fork, the median price grew to $910,000 - more than double what it was in 2013. Although sales fell to the lowest point in ten years and there were only very few listings to choose from, buyers were still keen to purchase.
The report places the 15.5% decline in home sales in 2022 into a broader perspective. While the fall in sales is evident, the number of sales last year was only slightly behind the average annual sales from 2017 to 2019. This was achieved despite a two-fold rise in mortgage rates to the highest level in two decades and a decrease in listings by almost half its value in 2019.
The year 2022 is characterized by two distinct halves; the first, where the Federal Reserve endeavored to contain inflation by raising the rate of interest, which resulted in a rise in mortgage rates, and the second where home sales suffered the consequences.
Rates on 30-year fixed mortgages have reached their least expensive in five months, standing at 6.09% as of Thursday, per Freddie Mac. Still, present-day costs to borrowers are markedly higher than a year ago when the standard rate was 3.55%. The reduced mortgage rates may possibly draw more shoppers back to the housing market.
In certain areas of extremely limited housing stock, there is still a great number of viewers.
