Despite being challenged by low inventory and rising mortgage rates, the Long Island housing market has so far remained resilient.
Though last month’s pending home sales saw a year-over-year decline, home prices are still on the rise.
The median price of closed home sales in Nassau County last month was $650,000, up 8.5 percent from the $600,000 median price recorded in Feb. 2021. In Suffolk County, the median price of closed home sales was $526,750, up nearly 11 percent from a year ago and just $3,250 off the record high median price of $530,000 reached in Aug. 2021.
There were 2,295 homes contracted for sale in Nassau and Suffolk counties last month, down 10.4 percent from the 2,560 homes contracted for sale in Feb. 2021, according to preliminary numbers from OneKey MLS.
However, February’s pending sales climbed 17.5 percent from the 1,954 pending sales recorded in January.
Though still historically low, inventory is beginning to tick up slightly. There were 4,591 homes—2,250 in Nassau and 2,341 in Suffolk–listed for sale with OneKey MLS on Friday, an increase of 3.8 percent from the 4,424 homes that were listed for sale at the end of January. Still, the current supply of listings is nearly 25 percent fewer than the 6,117 homes that were listed for sale at the end of Feb. 2021.
Mortgage rates are climbing. The average 30-year-fixed rate in New York this week is 4.09 percent, according to bankrate.com. That’s more than a full point higher than a year ago, when the average rate was around 3 percent.
And mortgage rates are likely to go higher in the next few months. The Federal Reserve recently signaled that it would begin a series of interest-rate hikes this month to help curb inflation.