After experiencing a sluggish first quarter, the Long Island housing market has made a remarkable comeback in April. Despite rising mortgage rates, the market witnessed a surge in pending home sales, an increase in new listings, and record-breaking prices for closed home sales.
A Surge in Pending Home Sales
Nassau and Suffolk counties saw a significant uptick in market activity last month. According to preliminary data from OneKey MLS, 2,266 homes were contracted for sale in April—a notable 5.7 percent increase from the 2,144 homes contracted in April 2023. This resurgence indicates a renewed confidence among buyers, suggesting that the market is regaining its momentum.
Inventory on the Rise
The number of homes listed for sale also saw a promising rise. As of Monday, OneKey MLS reported 5,083 homes for sale—2,237 in Nassau and 2,846 in Suffolk. This marks a 5.2 percent increase from the 4,834 homes listed at the end of April 2023. However, it’s important to note that current inventory levels are still significantly below the five-year average. The 5,083 homes listed represent a 33.2 percent decrease from the average of 7,612 listings at the end of April from 2019 to 2023. This constrained supply continues to be a driving factor behind the escalating home prices.
Record-Breaking Home Prices
The scarcity of available homes has led to unprecedented price levels. In Nassau County, the median price of closed home sales in April soared to $741,500, up 12.5 percent from $659,000 in April 2023. Suffolk County saw a similarly impressive increase, with the median price reaching $605,000—a 12 percent rise from $540,000 in April 2023. This is a historic milestone for Suffolk, marking the first time the median price has exceeded $600,000.
The Impact of Rising Mortgage Rates
Despite many industry predictions that mortgage rates would level off this year, April saw a sharp rise. The average rates for a 30-year fixed mortgage fluctuated between 7.5 percent and nearly 8 percent, with the current week averaging around 7.4 percent, according to bankrate.com. In comparison, the average rate in April 2023 was approximately 6.4 percent. This increase has inevitably impacted buyer affordability and market dynamics.
Insights from Industry Experts
Chris Roberti, director of strategic growth for Hartford Funding, a Woodbury-based mortgage lender, provided valuable insights into the current market sentiment. “Homebuyers are coming to terms with the reality of today’s interest rates. People have understood that if they have to buy a house, they can’t wait for the rates to get to where they hope they might be, whatever number they have in their head,” Roberti explained. “These rates are cyclical. I think within the next couple of months you’re hopefully going to see rates a little bit more down-to-earth.”
Market Outlook and Strategic Considerations
As the Long Island housing market navigates these fluctuating conditions, both buyers and sellers need to remain agile and informed. For sellers, this environment presents an opportunity to capitalize on high demand and record prices. Strategic staging, competitive pricing, and professional marketing can enhance appeal and expedite sales.
For buyers, understanding the cyclical nature of mortgage rates and the importance of timely decisions is crucial. While higher rates may seem daunting, the potential for rates to moderate in the near future offers a silver lining. Engaging with knowledgeable real estate professionals and exploring various financing options can provide significant advantages.
The Long Island housing market’s impressive rebound in April is a testament to its resilience and enduring appeal. As we move forward, staying informed and adaptable will be key to navigating this dynamic landscape. Whether you’re looking to buy, sell, or simply understand the market better, our team is here to provide expert guidance and support every step of the way.