With median home prices between $380,000 and $515,000, home sellers in Suffolk and Nassau Counties have seen the benefits of rising home prices over the last few years. But, it seems the market is headed toward a plateau that will eventually lead to a drop in prices.
For anyone watching the Long Island real estate market, here’s what you need to know:
The number of homes on the market is increasing
Home sales in Long Island have been in decline for many months now, meaning there are more and more houses on the market. In the last year, the number of pending sales in Suffolk fell more than nine percent. Between difficulty finding buyers for high-priced homes and recent tax increases, this trend will likely continue until prices come down. This is good news for buyers, who watched home prices on the island continue to increase for more than two years.
Prices may soon start going down
According to Newsday, the slowdown in sales means that while the market for homes near the median price for Long Island remains strong homes at the higher end will need to come down in price in order to sell.
It’s possible the rise in prices we’ve seen over the last year also connect to Amazon’s plans to open a Long Island City campus. But, now that Amazon pulled out of the deal, values may come back down.
Predicting when prices will drop presents a difficult challenge, partially because many homeowners put their home on the market just to test the waters. This practice adds to the overall number of listings, but since they are not in a hurry to sell they are less likely to budge on prices.
Monitor markets to find the best time to buy
Buying a home is a huge investment. By keeping an eye on the market and enlisting the help of a skilled real estate professional, your dream home on Long Island may be in reach.