Long Island home prices surge: Here are 3 factors that could lower them
LONG ISLAND - If you're looking to buy a home, and you're on a budget, you may want to steer clear of Long Island.
JUMP TO: WHAT COULD DRIVE PRICES DOWN?
Realtors say there's a boom in people wanting to buy, but not enough houses available – and that supply and demand is sending prices skyrocketing.
Looking for a home in Nassau County?
The average home price for a single-family home in Nassau County has hit $800,000 – an 11 ½% increase from last year and the highest prices seen since the pandemic.
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Jason Orsini is a licensed realtor on Long Island. He says the biggest driver of rising home prices is low inventory.
"We have very, very low inventory and when I mean low inventory, if you want to use a median number, you should have 150 to 200 homes to sell in every town in Nassau County depending on how many homes there are," Orsini said. "Right now, there's only 30 to 50. That is not a lot of homes. So even if the home inventory went up to 100 homes, that's still a sellers’ market."
Joseph and Taylor are currently living in Suffolk County and recently started looking for their first home in Nassau County.
"We were hoping to try to get something for around like $500,000, 550 and there's really nothing out there," said Joseph Lipari.
The couple says the whole process of finding a home is exhausting.
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"Most of the homes need work," Joseph said. "So, they're kind of seem like they're overpriced for what you're getting. If they were like move-in ready and beautiful, the prices would be still high, but not as bad."
And yet they say, it's a bidding war.
"If you go to a house that's listed for $800,000 that really should be listed, you feel for like more like 650, $700,000, but someone's bidding 850 on it. So, it's very, very tough and discouraging," Joseph said.
Making matters worse for buyers, the interest rates.
"Exactly, and taxes too," Taylor said. "I mean, it all plays such a big role into making that monthly payment just bigger and bigger."
What could drive prices down?
Orsini says there are three things that will drive prices down:
- If the rates go up drastically
- If the inventory goes from 50 to 150 overnight
- If we have an unforeseen natural disaster.