When you observe the current housing market on Long Island, it’s quite surreal that there is still more than adequate demand for purchasing. The price reduction has not yet affected prices.
Demand is still strong enough to prevent this from occurring. Bidding wars are still occurring sporadically. Inventory is still historically low (at a 2.7-month housing supply). Unless there is a radical reduction in demand, prices will remain strong.
It is possible that the upcoming election in November will have some effect, but no one really knows or can predict the eventual outcome.
What is happening today may be a once-in-a-lifetime occurrence. Developers cannot catch up with demand because approximately 6 million homes are deficient.
Moreover, we need at least an additional 2 million homes each year just to satisfy demand.
However, with the current layoffs occurring at larger companies and the continued reduction in our workforce, this may increase foreclosures and prompt those who are smart enough to consider selling before the inevitable happens to act.
The following graph, courtesy of our local MLS, shows the average increase in the prices of properties sold in Nassau County year over year.
| Residential, Condo, Co-op Properties | |||
| Month | Current Year | Prior Year | % Change |
| Jul-2024 | $913,149 | $821,107 | 11.2 |
| Jun-2024 | $904,742 | $817,436 | 10.7 |
| May-2024 | $891,382 | $819,208 | 8.8 |
| Apr-2024 | $879,133 | $824,594 | 6.6 |
| Mar-2024 | $874,489 | $823,877 | 6.1 |
| Feb-2024 | $868,248 | $822,700 | 5.5 |
| Jan-2024 | $861,376 | $822,362 | 4.7 |
| Dec-2023 | $854,337 | $818,693 | 4.4 |
| Nov-2023 | $846,172 | $816,683 | 3.6 |
| Oct-2023 | $839,467 | $815,449 | 2.9 |
| Sep-2023 | $833,929 | $813,436 | 2.5 |
| Aug-2023 | $827,545 | $811,035 | 2.0 |
It is quite obvious that the local market is still in a strong position.
The No. 1 reason is the extreme inventory deficiency and the still robust demand for homes on Long Island.
Another factor that comes into play is the number of Baby Boomers staying in their homes much longer—up to 14 years as opposed to nine years prior to the pandemic, based on 2024 NAR statistics.
Unfortunately, the draw and desire to continue to live on Long Island, with its various multitudes of activities and entertainment venues, are only for those who have the income and finances to afford to be there.
How and when prices might level off will depend on many factors and prognosticating, but what those might be in the future is a real tough call.
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