Long Island Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

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The Long Island housing market in New York has always been a topic of interest, boasting a unique blend of suburban tranquility and urban accessibility. As prospective homebuyers and real estate enthusiasts eagerly watch the market’s dynamics, it’s essential to explore the current trends and forecasts that shape this vibrant real estate landscape.

Let us delve into the Long Island, New York housing market’s house prices and trends, drawing insights from Redfin, a reliable source for real estate data and analysis.


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According to Redfin, the median sale price of a home in Long Island was $649K last month, up 10.9% since last year. The median sale price per square foot in Long Island is $413, up 9.5% since last year.

Another key indicator, the sale price per square foot, currently stands at $413, marking a 9.5% increase from the previous year. This metric is crucial for understanding the value proposition of properties in Long Island, and the upward trend suggests a favorable market for sellers.

The percentage of homes selling over list price is at 0.6%, signifying a competitive market where buyers are willing to pay premiums for desirable properties. Additionally, the days on market is at 68, indicating a relatively quick turnover and high demand for homes in the region.

Buyers in Long Island are placing a median down payment of 21.3%, underlining the financial commitment involved in real estate transactions. The total number of homes sold in the recent period is 1802, showcasing a vibrant real estate market with a substantial volume of transactions.

These trends collectively depict a dynamic and competitive housing market in Long Island, making it essential for both buyers and sellers to stay informed and adapt to the evolving conditions.

Market Forecast

Looking ahead, experts predict that Long Island’s housing market will continue to show resilience and growth. The region’s desirability as a suburban retreat, combined with its accessibility to city centers, positions it well for sustained demand. While factors like interest rates and economic conditions will influence the market, the overall trajectory seems positive.

The ongoing trend of remote work and flexible arrangements might also play a role in driving demand for Long Island real estate. With more people able to work from home, the appeal of spacious homes and larger properties with outdoor spaces has risen significantly. This shift in priorities favors Long Island’s housing market, where such properties are more readily available compared to crowded urban settings.

Climate Risks and Considerations

Beyond market trends and prices, it’s crucial to consider the impact of climate risks on the Long Island housing market. Redfin’s data includes insights into the potential hazards and environmental risks that homes in the area might face. These risks range from floods and storms to droughts and heat waves. The assessment provides valuable information about the likelihood of these risks occurring and how they might change by 2050.

For instance, the assessment indicates that Long Island’s heat risk could increase, leading to a higher number of hot days per year. Similarly, storm risk might elevate, affecting the chances of extreme precipitation events. The analysis also examines fire risk, estimating the likelihood of wildfires based on various factors.

Long Island County-Level Housing Market Trends

Long Island is physically composed of four counties, namely Queens, Kings (Brooklyn), Nassau, and Suffolk, with Queens and Kings located in the western portion and Nassau and Suffolk to the east. However, from a cultural perspective, Long Island typically includes only Nassau and Suffolk counties, while the western counties of Queens and Kings are not commonly regarded as part of the cultural concept of Long Island. This dual classification underscores the distinction between the geographical and cultural perceptions of Long Island.

Exploring the Real Estate Market Trends in Suffolk County, NY

Suffolk County, NY, situated on Long Island, is a vibrant and picturesque region known for its beautiful landscapes, coastal charm, and thriving communities. The real estate market in Suffolk County has seen significant shifts and trends, making it an intriguing destination for both homebuyers and investors.

A closer look at the data from realtor.com provides valuable insights into the current state of the market.

In December 2023, the median listing home price in Suffolk County, NY was $794K, trending up 18.7% year-over-year. The median listing home price per square foot was $549. The median home sold price was $610K. Suffolk County, NY is a seller’s market in December 2023, which means that there are more people looking to buy than there are homes available.

  • Increased Demand: The demand for homes in Suffolk County is on the rise, fueled by a combination of factors such as job opportunities, amenities, and a desirable quality of life.
  • Competitive Pricing: With a range of housing options available, competitive pricing is evident, providing potential buyers with the opportunity to explore various budget-friendly and upscale properties.
  • Rental Market Dynamics: The rental market’s flexibility and diverse pricing make Suffolk County an attractive option for individuals or families seeking temporary housing solutions.

Nassau County, NY Housing Market 

Nassau County, New York, is a vibrant and sought-after region with a rich history, diverse communities, and a flourishing real estate market. The median listing home price in Nassau County, NY stood at a robust $775K in December 2023, showcasing a remarkable 10.7% year-over-year increase. This surge reflects the dynamic nature of the real estate market in the county, making it a noteworthy destination for homebuyers.

For those considering the value proposition, the median listing home price per square foot comes in at a noteworthy $458. This metric provides insights into the spatial efficiency of properties in Nassau County, aiding potential buyers in making informed decisions.

In December 2023, the sale-to-list price ratio hit an impressive 100%, indicating that homes in Nassau County were, on average, selling for approximately the asking price. This equilibrium between listing and selling prices reflects a healthy and competitive real estate environment.

The market dynamics in December 2023 position Nassau County, NY as a seller’s market, where demand surpasses the available housing inventory. This imbalance emphasizes the need for potential buyers to act decisively in a competitive environment.

Understanding the pace of transactions is crucial, and in Nassau County, NY, homes spent an average of 70 days on the market in December 2023. This metric serves as a valuable indicator of the market’s efficiency and the typical duration a property is available for prospective buyers.

Examining the trend in median days on the market over the past year reveals interesting insights. While the current median days on market is 70, there has been a slight increase since last month, yet a marginal decrease compared to the same period last year. This data suggests a nuanced market fluctuation, highlighting the importance of staying attuned to evolving trends.

Will Prices Drop in Long Island Housing Market?

The current state of Long Island’s real estate market might lead to concerns about a potential market crash. Given the combination of current inventory levels and the upward trajectory of mortgage rates, the possibility of a market downturn in Long Island, and even across New York as a whole, might not seem far-fetched.

However, the likelihood of a housing market crash remains relatively low. Presently, Long Island is grappling with inflated property prices, elevated interest rates, and limited housing supply, factors that collectively hint at the potential for a housing bubble. Such a bubble forms when demand surges due to relatively modest price increases amid constrained supply.

Nonetheless, the escalation of home prices can eventually reach a threshold where they become unaffordable for the average homebuyer.

Despite this, a full-blown crash is unlikely primarily due to the persistent shortage of available homes. A crash scenario would necessitate an increase in both supply and demand, effectively deflating the so-called “bubble.” Yet, an upsurge in supply appears improbable unless mortgage rates drop significantly or more homeowners decide to list their properties despite prevailing interest rates.

Having established that a severe market crash isn’t highly probable, does this mean Long Island presents a favorable investment opportunity? The answer hinges on individual circumstances. Certain potential buyers might opt to delay purchasing until the market stabilizes further.

Beginning with home sales, while property values have exhibited a steady upward trajectory in recent months, the number of actual transactions remains subdued due to affordability concerns and a dearth of available homes.

Nevertheless, Long Island still holds allure for various individuals, being less densely populated than certain other New York locales. Furthermore, its proximity to New York City amplifies its appeal to prospective buyers. Despite the ongoing challenges, Long Island is expected to retain its appeal in the real estate market, albeit with certain hurdles that both buyers and sellers must navigate.

Some experts suggest a recent uptick in activity over the past months, characterized by heightened foot traffic during open houses and a modest increase in buyer investments. These trends signal a gradual recovery within the Long Island market.

Considering these insights, it’s conceivable that the market will continue its growth trajectory throughout much of 2023, creating opportunities for both buyers and sellers. However, the persistent challenges posed by elevated mortgage rates and constrained inventory are anticipated to temper this growth.


Sources:

  • https://www.redfin.com/neighborhood/219261/NY/New-York/Long-Island/housing-market
  • https://www.nysar.com/news/market-data/reports/
  • https://www.realtor.com/realestateandhomes-search/Nassau-County_NY/overview
  • https://www.realtor.com/realestateandhomes-search/Suffolk-County_NY/overview

This post was originally published on 3rd party site mentioned on the title of this site

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