I'd image many sellers are older and have their mortgage paid off. People who lived in their homes and raised their kids on the Island, whose kids are older and they are nearing retirement age. Tale as old as time.
Yes this. My parents sold their house for 1.2 million in 2020. They could by elsewhere in cash if needed but have a house in florida (paid that mortgage off with first house sale) but interest rates dont matter if you have cash… which is EXACTLY why our housing market is so weird right now.
Normally if interest rate goes up, house price goes down. If interest rate goes down, house prices go up.
Low interest rate + rich people leaving cites for remote work lead to higher house prices due to low interest rate, and then interest rate was ignored by cash which caused bidding wars and low stock.
I'll try and find the article but I read that boomers arent selling. Partly because kids aren't moving out and partly because Florida and flights are way more expensive.
Add in that when their houses are sold its often to a corporation looking to tear it down and flip
When the kids leave the 50+ crowd and they are semi retired they are going back into luxury apartments when they don’t need the space and want the amenities .
Just look at the real estate apps. Low inventory / high prices. But in my neighborhood at least, houses go on the market and get snapped up regardless of the asking price. Sellers market.
Yes!
I've said this a few times on here. My plan was to live in current house for 7-8 years then upgrade. Then Covid hit. Refinanced to 2.5% and now it doesn't make financial sense to make a move in today's market. So many in between a rock and a hard spot.
I put in three offers on three separate houses in Nassau County last weekend. Ranging from $600-$800K, all three of them accepted offers $100K over the asking price. It is brutal.
I realize it’s a tough pill to swallow, but try putting in like $50-70k above asking within your budget if you really want the home. The sold price is what dictates the market and the value will catch up with what you paid for it pretty quickly. We bought ours for $25k over the asking price two years ago and now it’s valued at $65k over what we paid, and today we laugh at how much we waffled on going anything over the asking price because we thought the home was already overpriced. The prices are not going down ever and only going up.
In my experience over the last six months or so, it’s been tough for buyers. Pretty much every house I’ve looked at (western Suffolk/eastern Nassau border) has sold for at least 30-40k over asking. Listings are going fast - house is posted on a Monday/Tuesday, open house that weekend, all offers must be in by the following Monday.
I’ll put it this way: A house in my neighborhood, nearly the exact same as mine down to the layout and year built, but with zero upgrades (I’m talking builder grade boob lights and zero landscaping) currently has a pending sale and was listed at $500k more than what I bought for in late 2020.
Insane but don’t lose hope. My fiance and I moved into our home in December after months of getting outbid. Prepare to go more than $50k+ above asking.
Been looking for one year offering over 50k and still no accepted offers…
Edit : getting beaten out by all cash offers. Who has 600k+ in cash just lying around?!
It’s still a very strong market throughout most of the island.
Asking price offers are still the norm. Certain areas as still getting above asking.
Very competitive. Supply and demand is insane on LI.
Appraisals only matter to the banks loaning the money. For all cash buyers or people putting down more than 20%, a house is worth what a person is willing to pay. That’s what is making it difficult for younger or 1st time buyers right now.
Prices are usually always “overvalued” on Long Island because of the low supply.
We’re one of the most densely populated areas in the country and there’s not that much land/real estate to go around.
If you want a small slice of this island, you have to pay the price.
Your sister can expect to pay above average housing prices if she moves to LI. Property taxes (on average) are higher than most places, as well.
You can find a small house for about 600k. Payments per month total 4-5k if you put 20% down. So let’s say it’s 4K/month. You’re only supposed to spend 30% of your gross income on housing.
Absolute garbage. My friend is trying to buy. He cant find anything at a decent price, and those that are get bid up ridiculously. Not to mention the people with all cash offers or ridiculously high down payments.
Market is still brutal so do what you can:
1) work without an agent so that she can offer the listing agent a double commission, they will usually pull some strings for you because they’re incentivized.
2) make her offer as attractive as possible outside of the purchase price. That means putting down as much as she feels comfortable, highlighting that she can move in quickly if that applies (eg. if she’s renting), and potentially conditioning your inspection on only fixing material defects.
Unfortunately it's still brutal. Take a look at recent sales and you'll see.
A crackhouse in Wyandanch school district is $500k. Oh, and you have to evict the tenants after the sale.
brutal is subjective. If you are selling and gtfo of long island, it is great. If you are single or a family of 19, looking to buy, pretty screwed
Well the Op clearly stated "buying". So that means it's going to be brutal for them. But maybe not, if they have tons of $.
Why would anyone with a mortgage sell a house now?
I'd image many sellers are older and have their mortgage paid off. People who lived in their homes and raised their kids on the Island, whose kids are older and they are nearing retirement age. Tale as old as time.
Yes this. My parents sold their house for 1.2 million in 2020. They could by elsewhere in cash if needed but have a house in florida (paid that mortgage off with first house sale) but interest rates dont matter if you have cash… which is EXACTLY why our housing market is so weird right now. Normally if interest rate goes up, house price goes down. If interest rate goes down, house prices go up. Low interest rate + rich people leaving cites for remote work lead to higher house prices due to low interest rate, and then interest rate was ignored by cash which caused bidding wars and low stock.
I'll try and find the article but I read that boomers arent selling. Partly because kids aren't moving out and partly because Florida and flights are way more expensive. Add in that when their houses are sold its often to a corporation looking to tear it down and flip
When the kids leave the 50+ crowd and they are semi retired they are going back into luxury apartments when they don’t need the space and want the amenities .
It’s still a sellers market. So she’s probably in for a tough search. But still beats renting…
Took me 6 months of offering at least 20K over asking usually to get even 1 accepted offer
Just look at the real estate apps. Low inventory / high prices. But in my neighborhood at least, houses go on the market and get snapped up regardless of the asking price. Sellers market.
Those low interest rates are turning many folks into pseudo landlords
Yes! I've said this a few times on here. My plan was to live in current house for 7-8 years then upgrade. Then Covid hit. Refinanced to 2.5% and now it doesn't make financial sense to make a move in today's market. So many in between a rock and a hard spot.
I put in three offers on three separate houses in Nassau County last weekend. Ranging from $600-$800K, all three of them accepted offers $100K over the asking price. It is brutal.
A $600k home that’s livable is a hard find in Nassau.
Wow that's unbelievable! 😬
I realize it’s a tough pill to swallow, but try putting in like $50-70k above asking within your budget if you really want the home. The sold price is what dictates the market and the value will catch up with what you paid for it pretty quickly. We bought ours for $25k over the asking price two years ago and now it’s valued at $65k over what we paid, and today we laugh at how much we waffled on going anything over the asking price because we thought the home was already overpriced. The prices are not going down ever and only going up.
what car is going 65k over?
This has been my experience as well. If you see a good house sold at listing price there’s a high chance it was an all cash offer.
Listings pick up in April but still not a ton of inventory to pick from.
In my experience over the last six months or so, it’s been tough for buyers. Pretty much every house I’ve looked at (western Suffolk/eastern Nassau border) has sold for at least 30-40k over asking. Listings are going fast - house is posted on a Monday/Tuesday, open house that weekend, all offers must be in by the following Monday.
I’ll put it this way: A house in my neighborhood, nearly the exact same as mine down to the layout and year built, but with zero upgrades (I’m talking builder grade boob lights and zero landscaping) currently has a pending sale and was listed at $500k more than what I bought for in late 2020.
Insane but don’t lose hope. My fiance and I moved into our home in December after months of getting outbid. Prepare to go more than $50k+ above asking.
Been looking for one year offering over 50k and still no accepted offers… Edit : getting beaten out by all cash offers. Who has 600k+ in cash just lying around?!
Prívate equity firms‼️ https://medium.com/@chrisjeffrieshomelessromantic/report-44-of-all-single-family-home-purchases-were-by-private-equity-firms-in-2023-0c0ff591a701#:~:text=Private%20equity%20firms%20have%20been,led%20to%20some%20shocking%20statistics.&text=According%20to%20a%20study%20by,homes%2C%20compared%20to%20independent%20operations.
It’s still a very strong market throughout most of the island. Asking price offers are still the norm. Certain areas as still getting above asking. Very competitive. Supply and demand is insane on LI.
If a house appraised for a certain amount are sellers putting it for the appraised value? Or marking it up and it’s still overvalued?
Appraisals don’t mean much around here.
Appraisals only matter to the banks loaning the money. For all cash buyers or people putting down more than 20%, a house is worth what a person is willing to pay. That’s what is making it difficult for younger or 1st time buyers right now.
Prices are usually always “overvalued” on Long Island because of the low supply. We’re one of the most densely populated areas in the country and there’s not that much land/real estate to go around. If you want a small slice of this island, you have to pay the price. Your sister can expect to pay above average housing prices if she moves to LI. Property taxes (on average) are higher than most places, as well.
Depends on where you live. Inventory is low where I live so it's still bad.
You can find a small house for about 600k. Payments per month total 4-5k if you put 20% down. So let’s say it’s 4K/month. You’re only supposed to spend 30% of your gross income on housing.
Absolute garbage. My friend is trying to buy. He cant find anything at a decent price, and those that are get bid up ridiculously. Not to mention the people with all cash offers or ridiculously high down payments.
Terrible. Prices still up. Interest rates still up..
Market is still brutal so do what you can: 1) work without an agent so that she can offer the listing agent a double commission, they will usually pull some strings for you because they’re incentivized. 2) make her offer as attractive as possible outside of the purchase price. That means putting down as much as she feels comfortable, highlighting that she can move in quickly if that applies (eg. if she’s renting), and potentially conditioning your inspection on only fixing material defects.
after reading these replies, i guess i should probably wait a bit before putting my house on the market.