March 10, 2024

Suffolk County Real Estate Market Update - February 2024

 

February 2024 Suffolk County New York Housing Market Trends

The real estate market in Suffolk County, New York is currently marked by a strong demand and a low inventory, with a "months supply of Inventory" at 2.25. In February 2024, there were only 1816 homes for sale in Suffolk County. This limited housing selection resulted in faster sales and higher prices. For comparison, in February 2020, just before the COVID lockdowns, there was almost a year's worth of inventory available in Suffolk County.

February 2024 Suffolk County New York Months Supply of Homes For Sale

 

The Suffolk County housing market is characterized by limited inventory and strong demand, resulting in homes being sold rapidly, typically within a median of 36 days. Home buyers in Suffolk County often face frustration due to the need for urgency and the possibility of submitting "best and final" offers, which forces them to participate in a silent auction-like competition for homes.

The percentage of the listing price that homes in Suffolk County are being sold for is 99.1%. This suggests that, on average, homes in Suffolk County are being sold very close to their listing price, with many even surpassing the list price. Due to the limited number of available properties and the high demand, sellers in Suffolk County are in a favorable position to receive competitive offers.

 

In general, the Suffolk County real estate market with low inventory and high demand greatly benefits sellers. Sellers have the opportunity to capitalize on the current market situation to optimize their selling price. The median estimated value of single family homes in Suffolk County, NY has risen to $738,740. Prior to the covid lockdowns, the median estimated value in Suffolk County was just $570,000.

February 2024 Suffolk County New York Median Home Values

 

March 10, 2024

Nassau County Real Estate Market Update - February 2024

The current state of the Nassau County, New York real estate market is characterized by a continued strong demand and a low inventory, as evidenced by the low “months supply of Inventory” at 1.85. Nassau County saw only 1816 homes for sale in February, 2024. This limited selection of homes for potential buyers, resulted in faster sales and higher prices. For perspective, in February 2020, just before the COVID lockdowns, there was 9.5 months of inventory available in Nassau County.

February 2024 Nassau County  Available Inventory

Due to the limited inventory and high demand in the Nassau County housing market, homes continue to sell quickly with a median of 36 days on the market. Nassau County home buyers continue to be frustrated with a process that requires urgency and possibly submitting “best and final” offers forcing them to compete in what is in essence a silent auction for homes. 

The Nassau County “list to sold price percentage” stands at 99.1%, indicating that Nassau County homes are, on average, being sold very close to their listing price with many going well over the list price. Nassau County sellers are in a favorable position to receive strong offers as a result of the scarcity of inventory and high demand. 

 

Overall, this low inventory and high demand  real estate market strongly favors sellers. Sellers can take advantage of the current market conditions to maximize their sale price.  The current median estimated value of single family homes in Nassau County, NY climbed to $738,740. Just prior to the covid lockdowns the Nassau County median estimated value was only $570,000.  

February 2024 Nassau County Median Home Value




Feb. 22, 2024

Suffolk County, New York Real Estate Market Update - January 2024

Let's take a look at the January 2023 Suffolk County real estate market data.

 

The primary factor impacting Suffolk County housing prices is the continued historically low Months Supply of Inventory or Absorption Rate, which is sitting at a low 2.41. This means that there is a limited number of homes available for sale, indicating high demand in the market.
Suffolk County Market Report Month of Inventory

The 12-Month Change in Months of Inventory has decreased by a whopping 39.29%. This significant drop suggests that homes are selling at a faster rate than before, making it a competitive market for both buyers and sellers.

January 2024 Suffolk County Housing Market Report Active Listings

Looking at the Median Days Homes are On the Market, we see that it is just 29 days. This short amount of time indicates that homes are selling quickly, further emphasizing high demand in the market.

January 2024 Suffolk County Housing Market Report Sold Homes

When it comes to the List to Sold Price Percentage, we see that it is at 101.3%. This means that homes are typically selling for slightly above the asking price, showing that sellers have the upper hand in negotiations.

January 2024 Suffolk County Housing Market Report List to Sale Price

Lastly, the Median Sold Price is $600,000, giving us a clear picture of the current pricing trends in the market. This can be a useful reference point for both buyers and sellers when making decisions about buying or selling a property.

January 2024 Suffolk County Housing Market Report Median Sale Price

Overall, these metrics paint a picture of a fast-paced real estate market with limited inventory and high demand. Whether you're looking to buy or sell, it's important to stay informed and work with a knowledgeable real estate agent to navigate these market conditions successfully. Happy house hunting!

 

Feb. 22, 2024

Nassau County, New York Real Estate Market Update - January 2024

Let's take a look at the January 2024 Nassau County real estate market data.

The primary factor impacting Nassau County housing prices is the continued historically low Months Supply of Inventory or Absorption Rate, which is sitting at a low 1.9. This means that there is a limited number of homes available for sale, indicating high demand in the market.

January 2024 Nassau County Housing Market Month Supply of Inventory

Next, we see that the 12-Month Change in Months of Inventory has decreased by a whopping 60.25%. This significant drop suggests that homes are selling at a faster rate than before, making it a competitive market for both buyers and sellers.

January 2024 Nassau County Housing Market Report Active Listings

Looking at the Median Days Homes are On the Market, we see that it is just 30 days. This short amount of time indicates that homes are selling quickly, further emphasizing high demand in the market.

January 2024 Nassau County Housing Market Report Days On Market

When it comes to the List to Sold Price Percentage, we see that it is at 100.5%. This means that homes are typically selling for slightly above the asking price, showing that sellers have the upper hand in negotiations.

January 2024 Nassau County Housing Market Report Sold Homes

Lastly, the Median Sold Price is $730,000, indicating a healthy market where homes are selling at a good price point.

January 2024 Nassau County Housing Market Report Median Sales Price

Overall, these metrics paint a picture of a fast-paced real estate market with limited inventory and high demand. Whether you're looking to buy or sell, it's important to stay informed and work with one of our Realtors to navigate these market conditions successfully. Happy house hunting!




Jan. 18, 2024

Introduction to Reverse Mortgages

For homeowners entering their golden years, a reverse mortgage presents a solution to unlock the untapped wealth residing within their homes. Many older Americans find themselves with little in retirement savings but possess significant equity in their homes, making a reverse mortgage an attractive option for individuals seeking financial flexibility but also want to remain in their current home.

A reverse mortgage is a financial product designed for homeowners aged 62 or older who have substantial equity in their homes. Instead of making monthly mortgage payments, the homeowner receives payments from the lender, effectively converting a portion of their home equity into cash.

 

Here's how it generally works:

  • Eligibility: Homeowners must meet age requirements (62 or older), own their home outright or have a low mortgage balance that can be paid off with the reverse mortgage, and live in the home as their primary residence.
    Loan Types: There are different types of reverse mortgages, but the most common is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA).
    Loan Amount: The loan amount depends on factors such as the homeowner's age, home value, and current interest rates. The older the homeowner, the more they can potentially borrow.
    Payment Options: Borrowers can receive funds in various ways, including a lump sum, monthly payments, a line of credit, or a combination of these.
    Repayment: Repayment is typically not required until the homeowner sells the home, moves out permanently, or passes away. The loan is then repaid through the sale of the home, with any remaining equity going to the homeowner or their heirs.

  •  

Pros of Reverse Mortgages:

  • Supplemental Income: Provides a source of income for retirees, allowing them to tap into home equity.
  • No Monthly Payments: Borrowers are not required to make monthly mortgage payments as long as they live in the home.
  • Flexible Payout Options: Borrowers can choose how they receive the funds, whether as a lump sum, monthly payments, or a line of credit.
  • Non-Recourse Loan: The borrower or their heirs typically won't owe more than the home's value when repaying the loan.


Cons of Reverse Mortgages:

  • Accruing Interest: Interest on the loan accumulates over time, potentially reducing the homeowner's equity.
  • Upfront Costs: Reverse mortgages may have higher upfront costs compared to traditional mortgages.
  • Impact on Inheritance: The loan could impact the amount of inheritance left to heirs, as the home equity is used to repay the loan.
  • Complexity: Reverse mortgages can be complex, and it's important for borrowers to fully understand the terms and implications.

Why choose a reverse mortgage instead of a cash out refinance or home equity line of credit?

Homeowners may choose a reverse mortgage over a cash-out refinance or a home equity line of credit (HELOC) for various reasons, depending on their financial needs, preferences, and circumstances. Here are some factors that might influence the decision:

  • A cash out refinance and a HELOC would both require monthly payments. 
  • Reverse mortgages are often easier to qualify for compared to traditional mortgages or HELOCs.
  • The eligibility criteria focus less on creditworthiness and income, making it more accessible for seniors with limited income.
  • With a traditional mortgage or HELOC, the homeowner might be required to sell the home if the loan balance becomes due or the they or their heirs may owe more than the home is worth when the loan comes due.

Before considering a reverse mortgage, it's advisable for homeowners to consult with their financial advisors and a licensed lender to assess their individual situation and explore all options.

Useful Links:
Home Equity Conversion Mortgage (HECM)
Free Home Valuation


Posted in General, Home Ownership
Jan. 10, 2024

Should I Purchase Renters Insurance?

Renters insurance is an insurance policy designed to protect those who are renting or leasing a residential property. Here is what you need to know about renters insurance:

Coverage Types:

Personal Property Coverage: This covers your personal belongings, such as furniture, electronics, clothing, and other valuables, in the event of covered perils like fire, theft, or vandalism.

Liability Coverage: This provides protection if someone is injured while on your rental property, and you are found responsible. It may also cover damage you or your pets cause to someone else's property.

Typically, standard renters insurance policies do not cover damage caused by floods. If you live in an area prone to floods or if you are concerned about flood damage, you may need to purchase a separate flood insurance policy. Flood insurance is often offered through the National Flood Insurance Program (NFIP) in the United States. If you are renting a first-floor unit in an area like Long Beach, NY, it is wise to consider additional flood insurance.


Some policies may even cover your personal property, like your cell phone, clothes in a storage unit, or a laptop left in your car, regardless of where it's located.

 

Perils Covered: Renters insurance typically covers a range of perils, including fire, theft, vandalism, windstorm, and certain types of water damage. However, coverage can vary, so it's important to review the policy details.

 

Additional Living Expenses (ALE): If your rental becomes uninhabitable due to a covered peril, renters insurance may cover additional living expenses. This can include hotel bills, meals, and other necessary expenses while your residence is being repaired.

 

Deductibles: Similar to other insurance policies, renters insurance often comes with a deductible. This is the amount you'll need to pay out of pocket before the insurance coverage kicks in.

 

Policy Limits: Each coverage type within renters insurance has a limit, which is the maximum amount the policy will pay out for a covered loss. Make sure your coverage limits are sufficient to replace your belongings or cover potential liability claims.

 

Exclusions: Pay attention to any exclusions listed in your policy. Some events or types of property may not be covered, and it's crucial to understand these limitations.

 

Cost Factors: The cost of renters insurance depends on various factors, including the location of your rental property, the coverage amounts, your deductible, and sometimes your credit score. The 2023 national average for renters insurance varies from $180 to $250 annually. Bundling your renters insurance with other policies like auto insurance may lower the cost.

 

Documentation: Keep an inventory of your possessions, including receipts and photos. This documentation can be helpful in the event of a claim.

 

Shop Around: Different insurance providers offer varying coverage options and prices. It's a good idea to shop around and compare quotes to find the best policy for your needs.

 

Does renters insurance cover the landlord?

No, renters insurance typically does not cover the landlord. Renters insurance is designed to protect the tenant's personal property and provide liability coverage for the tenant. The landlord is responsible for insuring the structure of the building and any owned property within it. However, a landlord may require renters to purchase a policy because it reduces the likelihood of legal disputes between the landlord and tenant over property damage or liability issues.

 

Should I Purchase Renter's Insurance?
YES. For less than $1 a day, renters insurance is a valuable investment that provides financial protection and peace of mind in case of unforeseen events. It's an affordable way to safeguard your personal property and protect yourself from liability risks while renting a home or apartment. See homes and apartments for rent in Nassau County here. See homes and apartments for rent in Suffolk County here. See homes and apartments for rent in Queens here.

 

Posted in Renting
Jan. 9, 2024

Nassau County, New York Real Estate Market Update - December 2023

Happy New Year. The Nassau County Real Estate market finished 2023 in solid seller’s market territory.

Nassau County Real Estate Market Report, December 2023


Absorption Rate
: Currently, there are only 2.05 months of supply available in the market. This means that demand is high and properties are selling quickly. That is a dramatic 57% drop from the 4.12 months of inventory in November.  It remains an excellent time to list your home as competition is low and appropriately priced homes should expect multiple offers. Buyers, act swiftly to secure your dream home!
Nassau County Homes For Sale Months Supply of Inventory Graph, December 2023

 

Available Inventory: The most critical factor impacting home prices is the limited inventory.  Currently there are only 1538 homes available for sale in Nassau County.  Compare that to the three year high water mark of 9130 in July of 2019.  Click here to see currently available homes for sale in Nassau County.

Nassau County Available Homes For Sale Graph

List to Sold Price: The List to Sold Price percentage stands at an impressive 99.9%. This shows that sellers are achieving close to their asking prices, providing confidence and security for both parties involved in a transaction. See the full data in the Nassau County Market here.

Nassau County Homes List To Sold Sales Ratio Graph, December 2023

Median Days on Market: Properties in Nassau County are moving swiftly, with a median of only 29 days on the market. This quick turnover highlights the high demand for homes and the importance of acting promptly in this market. 

Nassau County Median Days on Market Graph, December 2023

Median Sold Price: The median sold price in Nassau County is $720,000. While this number is slightly down from last month’s $726,500, this decrease can be attributed to normal seasonal activity. The 12 month median price increase in Nassau County is $45,000.  This figure signifies the value and desirability of properties in our area. Whether you are buying or selling, it is crucial to understand the market dynamics to make informed decisions. Click here to see recently sold Nassau County homes.

Nassau County Median Home Sales Price, December 2023.


Don't miss out on the opportunities available in Nassau County's real estate market! Whether you're a buyer or seller, we are here to guide you through every step of the process and help you achieve your goals. Contact us today to explore the possibilities. An educated client is a happy client. 

 

Jan. 9, 2024

Real Estate Market Spotlight - Northport Village

Northport Village is a charming, quaint waterfront community located on the north shore of Long Island, New York.. It is part of the Town of Huntington in Suffolk County. The village is known for its picturesque setting, historic architecture, and a vibrant downtown area. (See what the New York Times says about the village here.)

Here are some key aspects of Northport Village:

  • Historic Charm: Northport Village has a rich history dating back to the 17th century when it was first settled by Europeans. Many of the buildings in the village reflect its historical roots, and the area exudes a quaint and charming atmosphere.

  • Scenic Waterfront: The village is situated along the shores of Northport Bay, providing residents and visitors with beautiful waterfront views. The harbor area is a focal point, featuring a marina, parks, and docks for recreational boating.

  • Downtown Area: Northport's downtown area is a hub of activity with a variety of shops, boutiques, restaurants, and cafes. Main Street is lined with historic buildings, and the atmosphere is often described as welcoming and friendly.

  • Cultural Attractions: The village is home to several cultural attractions, including the Northport Historical Society and the Engeman Theater. 

  • Parks and Recreation: Residents and visitors can enjoy outdoor activities at the village's parks, including Northport Village Park and Steers Pit. These spaces offer greenery, sports facilities, and a place for community gatherings.

  • Community Events: Northport Village hosts various community events throughout the year, fostering a strong sense of community. Festivals, parades, and other gatherings contribute to the village's lively atmosphere.

In the past, the 1.5 to 2 hour commute from Northport Village to NYC  was too onerous for most people who worked in Manhattan.  However, rising home prices in Nassau County and the post-covid trend of full and part time remote work created a surge in demand for Northport, driving up prices.  

The current median list price for homes in Northport Village is now a whopping $984,349.  In December of 2019, pre-covid, the median sales price hovered around $600,000.  You can see Northport Village real estate market data here.  If you would like to pursue recently sold Northport Village homes, go here.

With only 24 homes currently for sale (as of 1/9/24) the current absorption rate for homes in Northport is only 1.65 months.  Compare that to its height in 2018 of 18 months on inventory.  

Finally, the average days on market (which in New York is longer than the national average due to the fact that the inspection takes place before the contract is signed) is only 29 days.  Less than ⅓ of the average days on market pre-covid.

Overall, Northport Village is a desirable place to live for those seeking a small-town atmosphere with a strong sense of community, a historic charm, and access to scenic waterfront views.  Click here to view currently available home for sale in Northport Village.

Note: The above data is from January 9, 2024. Market conditions change quickly.

Posted in Market Updates
Jan. 4, 2024

The Challenge of Buying and Selling a Home Simultaneously on Long Island

The residential real estate market is a complex dance, and many homeowners face the reality that they must both buy their new home and sell their current one simultaneously.  The coordination of a purchase and a sale is a daunting task, especially in New York. Whether you're upsizing, downsizing, or simply relocating, the intricate balance required to orchestrate these transactions can be a source of stress and uncertainty. In this article, we will explore the obstacles that arise and provide strategies to overcome them.

Factors to Consider
The most important factor to consider is whether it is necessary for you to sell your current home in order to buy a new one. In an ideal situation, home buyers have the ability to purchase their new home before closing on their existing one. This has several advantages. Firstly, it allows buyers to make offers on homes they like without the condition of selling their current home, which makes their offer stronger as it eliminates additional variables that could potentially cause the purchase to fall through. Sellers prefer a more certain, straightforward and expedited transaction. Secondly, coordinating the closing dates becomes more complicated, especially in areas like New York where the time from contract to closing is longer compared to the national average. Unfortunately, purchasing without selling first is not a reality for many.

An additional factor to consider is whether it is a buyer's or a seller's market. This factor is crucial as it determines the level of difficulty and time required for each side of the transaction. In a strong seller's market, it is advisable to first find your new home, get an offer accepted, and then put your current home up for sale, knowing that you will find a buyer quickly. On the other hand, in a buyer's market, it is recommended to prioritize getting your current home into contract before proceeding with finding a new home. In a seller's market, it is also challenging to have an offer accepted if it is contingent on the sale of your existing home. When a seller has multiple offers to choose from, such a contingency makes the offer less appealing compared to other similar offers. Currently, the Long Island real estate market remains in a solid seller's market territory, where multiple offers on appropriately priced homes are the norm. This makes it extremely difficult for buyers to win bidding wars when there is a home sale contingency. Home sale contingency clauses are far more palatable to sellers in a buyer’s market where the offer is most likely to be the only option.

See the status of the current Queens market here.
See the status of the current Nassau County market here.
See the status of the current Suffolk County market here.

 

The Synchronized Shuffle
One of the primary difficulties in managing both transactions concurrently is the synchronization of timelines. Ideally, you want the sale of your current home to align seamlessly with the purchase of your new one. However, delays in either transaction can create a domino effect, causing a cascade of complications that may leave you in limbo. Delays in financing, missing certificates of occupancy from a town or village and title issues are all common and can occur on either side of the transaction.  Most real estate sales contracts on Long Island use “on or about” language that enables either party to delay the closing for over a month.  This can be advantageous if you are looking to delay either side of the transaction in order to synchronize closings, however either of the other parties in the transaction can also delay the closing. Finally, most contracts will allow a “post possession occupancy”.  This allows the seller to close on their existing home and rent  that home for a few days awaiting the close on their purchase.

Tips for Success
1. Thorough Planning: Start with a comprehensive plan that outlines your financial capacity, desired timelines, and potential backup options in case of delays or setbacks. For example:

  • If finances permit, consider creating an overlap period where you own both properties for a brief time, allowing for a smoother transition. Your attorney can help with this by negotiating “on or about closing” dates that make this possible.
  • Pre-arranging a temporary place to live just in case your purchase takes longer than your sale. 
  • Ensuring your sales contract has a post possession occupancy clause. 

2. Consult Professionals: Engage with experienced real estate agents, financial advisors, and legal professionals who can provide guidance and expertise throughout the process and can successfully coordinate all of the necessary moving parts. 

3. Flexibility is Key: Be prepared to adapt to unexpected challenges. A flexible mindset can help you navigate unforeseen circumstances more effectively.

Conclusion
Buying and selling a home simultaneously is a complex feat that requires careful planning, financial acumen, and emotional resilience. While the challenges are undeniable, with strategic preparation and the right professional support, it's possible to navigate this intricate process successfully. Using real estate professionals that understand the difficulties and can proactively address them will increase your chances of a smooth transition into your new home.

Dec. 18, 2023

What is the difference between a condo and a co-op?

Understanding the Difference between Condominiums and Co-ops

If you’re in the market to buy a home, it’s important to understand the difference between condominiums and co-ops. These two types of homes are commonly available for purchase, but they have significant differences in terms of ownership rights, financing options, and monthly fees. In this blog post, we’ll explore these differences in detail, so you can make an informed decision when buying your first home.

Ownership Rights

The main difference between a condo and a co-op is the way the owner holds the property. When you buy a condo, you own the individual unit and have the right to use common areas. You’re responsible for paying property taxes, mortgage payments, and any maintenance fees. As an owner, you have more control over your unit, and you can sell it at any time.  Some condo developments may restrict rental options.  Be sure to inquire before purchasing if you have any plans to rent the unit at some point.

On the other hand, when you buy a co-op, you’re buying shares in a corporation that owns the entire building. You don’t actually own your unit, but you have the “right to occupy” it. You’ll have to follow strict rules and regulations set by the co-op board, including financial background checks and approval from the board before being able to sell or rent the unit.

 

Financing Options

Financing and mortgages also differ between condominiums and co-ops. If you’re looking for a condo, your lender will check if the unit is a Fannie Mae or Freddie Mac-approved property. If it is, you can typically get a traditional mortgage with a low down payment. However, some lenders may require a higher down payment, especially if you’re a first-time homebuyer.

Meanwhile, co-ops have more stringent requirements when it comes to financing. You’ll need to be approved by the co-op board to buy shares in the corporation, and you’ll need to have a substantial down payment upfront – often as much as 20%. Additionally, you may need to have a high credit score and a low debt-to-income ratio. These conditions make financing a co-op more difficult, but they also help ensure the financial stability of the building.

 

Monthly Fees

Ownership costs for condos and co-ops also differ. Condominium association fees typically cover the maintenance and repairs of the common areas, such as the pool or gym. The fees can range from a few hundred dollars to several thousand, depending on the building’s amenities. You’ll also pay property taxes, which are based on the value of your individual unit.

With co-ops, the monthly fees will include the building’s mortgage, property taxes, insurance, and maintenance fees. These fees can be more expensive than a condo, but everything is typically bundled together in one monthly payment. Also, if the co-op earns profits, the fees for shareholders will be lessened. While this may seem like a good deal, be sure to read the co-op’s rules and regulations carefully, as they may have unexpected fees or require additional payments.

Understanding the difference between a condominium and a co-op is essential for prospective homebuyers. Condos have more relaxed financing requirements and more control over the unit, while co-ops have more stringent requirements but often come with lower monthly costs. Ultimately, the decision between the two will depend on your budget, lifestyle, and long-term goals. By understanding the pros and cons of each option, you can make a more informed choice and find the perfect home for you.

Nassau County Condos and Co-ops for sale.

Suffolk County Condos and CO-ops for sale.

Posted in Buying A Home