Sold median prices for residential property from August through September saw a modest increase of
1.2% month over month from $760,800 to $770,000. However, year over year prices are up 10%. It
it appears that the demand is still insatiable for those who still have the need or as some call it fomo
(fear of missing out) in purchasing a home. However, the number of homes sold decreased from 8915
to 8,254, a 7.4% decrease. The lack of inventory can be directly attributed to these statistics. Although
interest rates are lower than last year, the decrease in the Fed rate by ½% (overnight lending rate
between banks) did not affect mortgage rates. The week after this decrease, rates increased to 6.9%
for a 30-year fixed-rate mortgage. The chart below provides a clear picture of the residential market in
Nassau County.
Median Sold Prices
Residential Properties
|
|||
Mon
th
|
Curre
nt Year
|
Pri
or
Year
|
%
Chan
ge
|
Sep-2024
|
$770,000
|
$700,000
|
10.0
|
Aug-2024
|
$760,800
|
$700,000
|
8.7
|
Jul-2024
|
$750,000
|
$695,000
|
7.9
|
Jun-2024
|
$750,000
|
$699,000
|
7.3
|
May-2024
|
$740,000
|
$700,000
|
5.7
|
Apr-2024
|
$730,000
|
$700,000
|
4.3
|
Mar-2024
|
$725,000
|
$700,000
|
3.6
|
Feb-2024
|
$725,000
|
$700,000
|
3.6
|
Jan-2024
|
$720,000
|
$700,000
|
2.9
|
Dec-2023
|
$715,000
|
$700,000
|
2.1
|
Nov-2023
|
$710,000
|
$699,000
|
1.6
|
Oct-2023
|
$705,000
|
$698,000
|
1.0
|
|
|
|
|
From the chart below, Condos saw a good increase from August through September of
$738,000 to $752,250 (1.9%). The year-over-year increase was 12.3%. Due to a condo’s long–
term rental investment quality, this may have been a contributing factor. Also, I believe the
sheer lack of single-family homes may have driven more to consider purchasing a condo. The
number of condo sales in September was 714 compared with 712 in the same month last year
and again 712 units in August of 2023. There was an increase from August of 2024 from 693
units.
Condo Properties
Month Current Year Prior Year % Change
Sep-2024 $752,250 $670,000 12.3
Aug-2024 $738,000 $654,500 12.8
Jul-2024 $730,000 $670,000 9.0
Jun-2024 $730,000 $660,000 10.6
May-2024 $725,000 $670,000 8.2
Apr-2024 $700,000 $675,000 3.7
Mar-2024 $700,000 $675,000 3.7
Feb-2024 $698,000 $675,000 3.4
Jan-2024 $690,000 $675,000 2.2
Dec-2023 $690,000 $670,000 3.0
Nov-2023 $680,000 $665,000 2.3
Oct-2023 $680,000 $655,000 3.8
The sold median price The median sold prices
for coops in September showed a very slight
increase of $1500 to $315,000 from August. But
year over year the increase was 5%. The days of
double-digit increases are over. The number of
units sold, year-over-year went from 819 to 800
units, a decrease of -2.3%. This was down over 24
months, when inventory in October 2022 was far
greater than October 2023. The lack of
inventory and higher mortgage rates contributed to
decreased sales.
Also, one must pass a coop board review, the necessity
of having adequate income, higher credit scores, and low
debt/income ratios may have eliminated many who weren’t qualified to
purchase. Excessive credit card debt year over year is another factor in
lowering credit scores and increasing debt/income ratios.
Co-op Properties
|
|||
Month
|
Current
Year
|
Prior
Year
|
% Change
|
Sep-2024
|
$315,000
|
$300,000
|
5.0
|
Aug-2024
|
$313,500
|
$300,000
|
4.5
|
Jul-2024
|
$312,000
|
$295,000
|
5.8
|
Jun-2024
|
$310,000
|
$295,000
|
5.1
|
May-2024
|
$310,000
|
$295,000
|
5.1
|
Apr-2024
|
$310,000
|
$295,000
|
5.1
|
Mar-2024
|
$310,000
|
$295,000
|
5.1
|
Feb-2024
|
$310,000
|
$290,000
|
6.9
|
Jan-2024
|
$310,000
|
$290,500
|
6.7
|
Dec-2023
|
$309,000
|
$290,000
|
6.6
|
Nov-2023
|
$300,000
|
$290,000
|
3.4
|
Oct-2023
|
$300,000
|
$290,000
|
3.4
|
Although purchasers are still out there buying even though rates are now up again. How
long this will continue is anyone’s guess. Things just may chug along, unaffected and
unfazed. I believe those homeowners who continue to increase their credit card debt, who
will no longer be able to pay their bills and mortgages will eventually have to be sold or go into
foreclosure. Currently, everything looks fine, with the majority having excellent
appreciation and equity. But this just might slowly change. Although there is no bubble in
inventory as there was in 2008; there is a bubble in the housing prices that has gone
through the roof. The cost of housing has become excessive for the majority and only those
who are substantially sound are buying.
We’ll see what President-elect Trump will consider in making any future strides
with the severe lack of inventory, unaffordability in housing, and high interest
rates.
Stats courtesy of MLS.COM
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180
in Great Neck. For a free 15-minute consultation, value analysis of your home, or to
answer any of your questions or concerns he can be reached by cell: (516) 647–
4289 or by email: Phil@TurnKeyRealEstate.Com or via https://WWW.Li–
RealEstate.Com