Whether you live on Long Island or are looking into investment properties in the area, it is always helpful to understand the current state of the real estate market. These factors can help sway your decisions on what is a fair price for a property and what it may be worth in the near future.
Additionally, knowing whether it is a buyer’s or seller’s market can have a big impact on the price you pay for a property and how quickly you can acquire it. Keep reading to find out the latest updates from the Long Island real estate market in 2022!
A Lack of Inventory
The number of homes that were sold throughout 2021 dropped significantly when compared to previous years. This is thought to be due to a widespread lack of inventory on the market. When there is a lack of inventory, it drives up demand for those who want to purchase a home. The low inventory is thought to be attributed to generational owners who pass down their homes to their family members, as opposed to selling them.
A Seller’s Market
When there are more buyers than sellers, it is referred to as a seller’s market. This means that the seller has the upper hand when it comes to the purchase price and negotiations simply because they have more available buyers to choose from. Unfortunately for buyers, being in a seller’s market means that the price of available homes is significantly inflated, so you will likely end up paying more for a property.
Generational Owners May Seize the Opportunity
While one of the factors behind the current seller’s market on Long Island is, in fact, generational owners, they are also predicted to play a major role in real estate trends. It has been predicted that generational owners of Long Island real estate may take the plunge and sell their family homes. With prices steadily rising, many are starting to seize the opportunity to sell their properties.
Expect a Surge of Out-of-State Buyers
Long Island is predicted to see an increase in out-of-state buyers who are looking to purchase these generational homes. While local Long Islanders may not be capable of comfortably affording the skyrocketing home prices, those from out-of-state are! A surge of out-of-state buyers will likely enter the Long Island real estate market and purchase these inflated homes.
Investors Are Making a Pretty Penny
As most investors know, following where the market points are is the best way to leverage earning more money. Investors are taking advantage of the low inventory on Long Island by investing in more multi-unit complexes. All the previous trends will likely cause locals to need more rental accommodations since they will be unable to afford the inflated housing prices.
If you are interested in purchasing a home on Long Island, be sure to contact Lynx Mortgage Bank LLC! You deserve your dream house and we’d love to help you get the right mortgage for you. Contact us today at 877-599-5969 or through our website to get started.