Lynx Mortgage Bank LLC considers ourselves experts on Long Island real estate, and we want our clients to feel the same. That’s why we want to give our clients market updates to help them decide if purchasing a home is right for them. Here’s what the housing market has looked like since our last update.
Prices High, Supply Low
There is no denying that the Long Island real estate market is hotter now than ever before. U.S. home prices continue to surge due to tight supply and lower interest rates and borrowing costs. Now, with the economic recovery, more buyers are entering the market. According to Redfin, the typical home asking price on Long Island hit another new high in May 2021 by reaching $568k. While home prices never fell, this high is an 18.2% difference from last year.
Despite the climbing home prices, American home sales have been declining for the last 4 months. While some are suggesting the housing market is in trouble and demand is about to flatten in 2022, the lack of supply is more likely the culprit now and causing steep price rises across the country.
New Home Construction
New home construction is expected to rise, but material costs, labor, and interest rates will delay production, contributing to the current supply shortfalls.
May 2021 Stats
According to Nar’s chief economist, as more vaccines are administered, and potential home sellers become more comfortable listing and showing their homes, the inventory should grow.
Here are a few more stats by NAR that you should know:
- Active listings have fallen 50.9% versus last year
- Inventory of unsold homes, including pending listings, has been reduced by 20.8%
- New home listings have risen only 5.4% year over year
- Newly listed homes now make up a whopping 44% of all homes for sale on the MLS
- 523,000 fewer homes were up for sale on a typical day in May compared to the previous year
- Homes were on the market for 39 days in May—32 days less than at the same time last year.
Are you looking to purchase a home on Long Island this summer? In a fast-paced environment such as the housing market, having your ducks in a row will allow you to have an edge over any competition you may have for your new home. Lynx Mortgage Bank LLC can help you get pre-approved so you are ready to hit the ground running. Book a consultation with one of our mortgage experts today!