Long Island's Decreasing Supply Has Caused Prices To Increase

Buyers must spend more to secure a house due to a scarcity of inventory, and those who need a mortgage are often outbid by those who can pay cash. The coronavirus outbreak last year gave rise to a property market bubble that has continued into this year. A few of the areas in the area where real estate values have increased include Great Neck, Manhasset, and Old Westbury.

According to the National Association of Realtors, the housing scarcity that existed before the pandemic has been made worse by labor shortages and supply chain issues caused by the worldwide health catastrophe (NAR). Although the population of the nation is increasing, not enough new houses are being built to either keep up with it or to replace those that have been severely damaged or destroyed.

The average Long Island property cost $580,000 in May, up from $491,000 in April, according to statistics given by One Key Multiple Listing Service, while the median contract price, or the amount paid by purchasers, jumped to $600,000 from $482,500.

What causes the strong demand for homes in Nassau County and the surrounding Long Island regions? Gil Shemtov has been a top Great Neck real estate agent with Douglas Elliman for more than ten years.

Because borrowing rates are so low, liquidity is abundant. Applying for a house loan shouldn't be difficult as long as you satisfy the prerequisites. The advantages of home ownership are beginning to sink in with the general people. I've had customers who are hesitant going back to an apartment they previously left because of the coronavirus lockdown. They seem to be reluctant to part with their backyard."

Shemtov said that in terms of the epidemic, "nobody has ever seen anything like this." I was able to draw in more prospective buyers to my property by using a 3D tour. The residence wasn't made available to them until the closing day. They purchased a property even though the neighborhood was under lockdown." Shemtov asserts that the final sales price was less than he had expected, despite the fact that the asking price was close to $800,000.

Alex Sajovits believes that pricing are now the key market drivers. Simply simply, a home that was originally advertised for $699,000 ended up selling for $765,000. This is because purchasing a less expensive house would have required more extensive renovations overall. Sajovits asserts that proposals that do not need an 80/20 down payment often prevail over those that do.

Sajovits said that since Long Island is rather remote, residents of the five boroughs have migrated there. It was described by him as "loss of interest." As a result of the aforementioned phenomena known as "money's cheapness," interest rates on mortgages are now relatively low. Massapequa, according to Sajovits, a real estate agent with 21 years of experience, is Long Island's "hottest market." People from cities are drawn to Long Island because it allows them to stretch out and get away from the throng.

Potential buyers are becoming more interested in luxury properties. The co-principal of Pesce & Lanzillotta Team in Dix Hills, Ron Lanzillotta, claims that purchasers are prepared to fork out more money to move up to a more opulent house. Pesce & Lanzillotta and Berkshire Hathaway HomeServices are connected.

Mike Pesce, the second team's principal, disagrees "The epidemic caused many families to start seeing their homes as more than simply a place to live and eat. Due to the epidemic that happened last year, the high-end luxury market was almost shut down, which has increased the feeling of certainty and urgency.

The sweet spot for showings and offers, according to Shemtov, is between $3.5 and $4.5 million. Lanzillotta asserts that wealthy individuals may be found across Long Island, including the Five Towns, despite the fact that there has been an inflow of buyers from New York City.

According to Pesce, "people aspire to reside in such regions" because of the Five Towns' excellent public schools. These five cities are in close proximity to several golf courses, the beach, and other leisure activities. In these regions, there is strong community togetherness." Many of its communities are accessible by water, and it is in a fantastic position close to JFK Airport and New York City.