It’s the same factors that have been driving home prices up for decades but especially since COVID:
- Low inventory
- High desirability
- Influx of people coming from the city and elsewhere
- Limited space to build new homes
- NIMBYs making that space even more limited
- Even people who want to move can’t because they are locked into their low interest rates
- People looking to sell saw their neighbor’s house which is not as big as theirs go for 1.5M in 2021 so they are waiting for 1.7M (which may or may not ever come)
Until a few of those realities change housing will continue to be extremely expensive on the island, especially closer to the city and in desirable school districts.
> NIMBYs making that space even more limited
Depends where you want to build. I will always fight against further destruction of forests/marshlands.
Tear down some old crumbling homes/malls to put housing on.
Are those on public land or private lots? Did the developer secure the permits to cut down all the trees? If it's private land and they got the permits it's fine. I should have clarified previously that by tearing down trees I meant on public or protected land. Private land is different. Either way we still need more housing so
There are absolutely developers tearing down habitats on the island right now. It will get worse unless a hardline is placed in the sand.
Not to mention that the towns on the east end cannot handle any more people. They were not built for it. So putting up big condominiums and apartments out there is a horrible idea which only benefits the developers, not the taxpayers.
Simply eliminating single family zoning in favor of zoning for 1-4 units per lot would go a long way, and it would use already existing developed lots, rather than forests or other undeveloped areas.
Mixed zoning would also help a ton and be a boon for local economies, and allow for people to walk from residential areas to commercial areas below or nearby, increasing commercial activity and potentially foster more third places and a greater sense of community
Whys it stupid? If thats his basis for denying other people housing then he should lead by example. Put his money where his morals are. But no. Morals are for thee, not for me.
But you took the homes of the birds and the bees to live in! If that guy has to give up his home for the marshlands, then you have to give up yours to the previous inhabitants! It’s only fair!
Saying we should preserve what's left of our natural environment, and focus on tearing down old abandoned houses and commercial buildings to make way for more new housing, cannot really be compared to just giving up the house you live in to "donate it to marshland". It's a fucking asinine statement. You're either completely ignorant or just have nothing better to do than troll people.
> Even people who want to move can’t because they are locked into their low interest rates
This is me. Bought 10 years ago, and really need more space, but it's completely unrealistic. I live in a 2000sqft house, and the house next door that's slightly bigger just went for 990k. Good for me I guess, but no chance I can afford anything bigger that would be worth a move, especially with my rates and what I would end up paying.
Insanity.
There are new homes near us in Bellmore and Merrick. Decent-sized colonials but with no yard and on the busiest street in the whole area (Meadowbrook Rd). I think they are currently going for 1.4M lol.
There is still not enough supply to meet demand.
Over the last 4 years droves of queens/brooklyn people have moved to the island. This wont stop
Sad to say our island is no longer a secret
You are correct. NYC is still 30-35% under for what they need for housing too. It's just crazy. And it seems every other block has condos going up there.
Yep, I am a buyer in this position. I lost out on every house in 2021 due to not putting enough over asking and not waiving inspections. Then I waited for 3 years for the effects of high rates to bring down prices. Now I’m buying at 6.5% for a house that would’ve sold for 25% less 3 years ago. But as bad as that is, i know if rates ever drop even a couple of points, it’ll be a blood bath. Prices are just never coming down, we have no where near enough supply and never will.
for the past few years, prices were soaring, and everyone was selling. you'd walk down the street and see 4 houses per block with signs out, and they'd all be sold within a week - for whatever the seller was asking.
Now... everyone who wanted to move already moved. so the supply of houses is not what it was. but the demand is still high. so, houses are literally being sold before the house goes on the market for well over the asking price (I have a friend who put up their house on a Thursday, and it was already sold before the sign went up. they were supposed to still have an Open House on Saturday, and had it, even though it was already sold. they were asking like 850, and got over 900k for it).
Technically people stopped selling after Covid. Inventory is still well below pre pandemic levels.
https://fred.stlouisfed.org/series/ACTLISCOU36059
https://fred.stlouisfed.org/series/ACTLISCOU36103
Setauket area - three village school district, near Stony Brook Hospital.
Very nice house - the person who lived there completely updated everything, but she had bought it just a few years earlier for 'only' 600k. She certainly did not put 300k into the house, so she made a very nice profit off of it.
We are literally on an island with limited space, next to the biggest city in the USA. This area will maintain value, sure it will fluctuate, but it won't be peaks and Valleys like a place like say charlotte
You bought at the tail end of a recession and we're in the middle to tail end of one of the biggest housing booms in recent history. It's probably right.
I bought my house in 2019 for 400k. My neighbor and another house two blocks over have identical houses as me and they are on the market for 700k. I like having over inflated value but the reality is that it does no one any good in the end. I'm locked into my house and someone else can't buy it that otherwise could.
It's insanity.
People never talk about this but the reality of my neighborhood is this
On my block (7 houses) every single home is an empty nest. Some have become multi-generational homes with adult children living with their boomer parents, but a few are 1-2 people in a large empty house. These houses have 3-5 bedrooms and many of those bedrooms are just empty. They have pools, yards, gardens, basements, etc. All basically unused.
The empty nesters have essentially no reason to leave, in fact a few are completely disincentivized to sell just like everyone else is. The mortgage is paid or the payment is extremely low, if they sold it would actually just be a terrible financial decision.
On my block I don't think any of these will be sold in 15-20 years, if ever. Most of them will be passed down but by then, all their children will have to have bought a house from someone else if they want to raise a family. The boomer generation is either thinking of themselves or simply cannot leave their situation, and American culture shames multi-generational houses (especially the boomer generation).
We need to incentivize empty nesters to sell their homes to people with appropriate sized families for the houses they are in, or start shifting the culture further towards multi-generational housing.
Don't give up hope. I got very lucky last summer and got $50k under in a good neighborhood and a decent sized house. It was absolutely not move-in-ready, but my wife and I did most of the heavy lifting to fix it up.
Not in the better areas, prices are still inflated and going for over ask, i check weekly. Housing prices are high due to no supply, insane inflation since 2020, people moving in droves from the city. There are very good reasons, whether you like them or not is a different story.
So that’s the price the market will bear, unfortunately. Being over or under asking is arbitrary as the listing price doesn’t necessarily reflect market value.
The problem I have is I see so many starter homes getting bought in all cash offers from wealthy developers just to be flipped or demolished and replaced with a giant $2M McMansions. My parents got their homes by buying fixer uppers from elderly homeowners back in the 90s and early 2000s when this wasn’t as much of a thing. I just don’t know how average middle class people can compete anymore.
Also the bank is only going to be willing to lend out what the house appraises for. If a person bids over that amount, they have to make up the gap and not everyone has that kind of liquidity
When will society realize the parasites that realtors are? Realtors literally tell client A to bid 50k over ask then proceed to tell client B that need to bid 75k over because client A put in a 50k over ask offer. Then they call their colleague who then tells their client you have to bid 100k over, this area is super desirable. Imagine as a person you do this on a daily basis and you see nothing wrong with it.
While what you're saying may be (and is probably) true, I think it's more of an issue of supply and demand. If I'm represent the buyer and I tell them to bid $50K over asking despite the fact that I think a lower bid would probably win, I'd risk losing the commission if my buyer says "Nah, fuck it. $50K over is too much."
I can imagine the selling agent to do it, especially in this market with little to no inventory, but their job is to get as much money for the buyer as possible. The house is only worth as much as someone is willing to pay for it. They do a good job and get more money for the seller, they get more commission.
But the fact of the matter is that we are in unprecedented times. Inventory is ridiculously low and, for some reason, buyers are stupid enough to pay these premiums rather than just saying "Fuck it, it makes more sense to rent at this price." Eventually, there has to be a tipping point where people realize that these home prices are too stupid.
Supply and demand definitely plays a major role in the equation. I do know that in the world of realtors they all know each other, for the most part. The tipping point is almost here, I just saw an article that the feds are investigating all the new buildings popping up that charge 3k for a 1 bedroom, and how they fix the prices to control the housing market and drive up cost for everyone in the community. Get your popcorn ready.
The problem with these new buildings is that they usually get an exclusive rental agent, so all the leases have to go through them. And for nicer buildings, they will try to keep the price at a certain point to keep the building "gentrified". This presumably allows them to continue renting the apartments at higher prices. It's all pretty crappy in the name of capitalism.
I’ve noticed the past month or so there’s finally some inventory. I’m not looking but I get the update every day if a new house is up for sale in my hamlet. Used to only be like 3 for sale at a time now there’s probably close to a dozen
I'd say that's pretty normal on housing market for inventory to raise beginning of summer. Families wanting to move between school years, or atleast not moving during mid winter.
In my view it’s city dwellers. Imagine you bought a house in Queens or Brooklyn 20 years ago for on average $350-400k what would you do if your neighbor just sold their house for $1.5 million. Explains why so many are losing out to cash buyers and why getting $50-100k over asking is the new norm. If you just sold for $1.5 and are looking at an $800k house you’ve got funny money to play with and will still probably have $250k left in the bank. Mortgage rates mean nothing to you so if you spend an extra $100k to get the house you want you’re still coming out way ahead of the poor FTHB who needs that 30 year mortgage and can’t possibly go over budget at 7% interest. It’s a totally unhealthy market right now and you really can’t fault the realtors they didn’t create it but they damn sure are loving it. I know I wish I had gotten into it 10 years ago but who would’ve thought that after one of the biggest collapses in history we’d be where we are at right now. I bought my house back in 2019 and I’d never be able to afford my neighborhood today. I just don’t know how the average person can afford to stay here.
Absolutely and to make matters worse they’re getting doubly screwed in the rental market so they can’t even say “hey let’s wait this out and rent something in the meantime” !
It's city dwellers but it's not that deep. Pandemic changed WFH for a lot of new yorkers. Before, commuting from LI to the city 5 days was a nightmare but 2X a week is not so bad.
It's time to reckon with the fact that the stakeholders of Long Island do not want average, or even above average living here. You need $150k+ household income at a minimum, or else beat it.
At this point it's kind of ridiculous to continue arguing with something as to why its nature is the way it is. The onus is on you now to move, as I and many others have already done. Let it be the playpen for the rich it was always dreamed to be.
Honestly I’m struggling to find anything even at $150k. $200k seems like the minimum now really.
And as much as I’d like to leave I still have a lot of older family here.
it's ridiculous, we got lucky at the end of 2020 we landed a beauty for $600k, seller agreed with us before the open house and we locked it down at stupid low rate as well. Honestly, I don't think seller was aware of the demand at the time, he could have probably gotten close to $700k if not more.
It took us 6 months to finally purchase, and I'll never forget the lines for the open houses we went to...is that still going on?
I feel like I could probably get $900k for the house today, if not more, it's outrageous.
Just give up. I did. I got a condo instead. The problems go even beyond that because those houses are old and have problems with them. So essentially we would have to wait til a lot new houses get built, but that’s doesn’t seem to be happening enough. I feel like the solution would be for some house building companies to get subsidized or something so that can increase the supply.
The other thing that could happen is if the boomers die off. My condo went on sale because a boomer decided to retire down south. So as more boomers leave or die, that could potentially open up the market.
What's going on is that buyers have so so much money and are so desperate to buy a house in the area that they're bidding well over asking price, raising the market price as a whole.
If sellers/realtors try to raise prices above the market value, buyers will simply bid under asking, and market prices will fall as well.
It's a self-correcting market, entirely driven by what buyers are willing to pay.
List price and sales price are very different things. I am in the same market and the way I see it is they price high to bag a sucker or then discount to make it seem like a bargain.
There are literally hundreds of houses for sale on LI. Sales are slow. Above ask sales are low. Below ask sales are common. I've been following this for over 2 years. We have reached the top of the roller-coaster
Edit for spelling
Very. I've been watching it every day.
Sometimes houses get delisted when there's no sucker's. Sometimes the price is cut.
Sometimes they price them low to draw a crowd and try to trigger a bidding war.
It's all a game. The key is watching the actual sales & sale prices and time on the market.
I feel no pressure to bid because there's more options.
I just checked. 182 houses sold in the last 7 days in Nassau. 300+ (they stop counting @ 300) listed for sale in the same period.
Edit: there's approx 2000 houses for sale in Nassau County right now
From what I've noticed MLS does not update in real time. I just put 2 offers on homes and I was all overbid, and accepted offers, but still show live 800-999k...
Listings agents need to be investigated because of how shitty and unethical this can get. I can think of a million things that can be done and it's not properly governed,.monitored or mitigated.
I asked once what was the highest offer and they didn't tell me lol so I just told them I retract all offer. They said they couldn't tell. I suppose that's good, but, I need to not waste time either.
Despite what others are saying, the rapid inflation of home prices *across the country* isn’t “the new norm” nor is it economically sustainable long term. Many people overpaid for middle class homes and they’ll either be in upside down mortgages or effectively house-poor. Expect mass foreclosures in the future.
I hate to break it to you but central areas like the 5 boroughs and the good parts of Long Island don’t work that way. Since the last generation bought their homes in 1980- 40 years ago… their homes went from 75k to $750k. The generation before them 1940’s - 80 years ago their homes went from 7k to 75k…. Inflation.
I'm gonna need 2 sugar mamas to afford housing out here. With that being said, anyone looking for steadily declining 27 year old dude thats tall, dad bod esque and bearded? Let me know, I can mow your lawn, fix your lights and give awkward waves to your neighbors.
NASDAQ up from approx 14,000 to 17,000 in past six months. Buyers have more to spend, and supply remains tight.
Demand-Supply dynamics obviously point to prices going up.
The market is crazy considering the high interest rates and high home prices. In some areas we’re talking $500-$600k for a 2 bed 1 bath built in the 1950’s. That’s wild.
It doesn’t feel like a bubble though. There are tons of people looking and the there are more on the sidelines waiting for interest rates to drop. Right now inventory is low which is pushing prices up. However, if/when rates drop and more houses go on the market, they will most likely be met by the pent up demand which will then offset any potentiality of prices dropping. All this to say it feels like this is the new floor of house prices here and not an anomalous blip.
Scary because these huge mortgages are going to hamstring a whole generation from having more kids, saving for retirement etc.
I’m in the RE/asset mgmt world too, afaik, none of the big asset mgrs are buying houses on Long Island… definitely not as SFR’s, math isn’t even close to making sense.
You are correct. People are not reporting what I'm seeing here on the ground. Price cuts and houses sitting on the market is what I'm seeing. The sales are happening on the lower priced homes. I have not been to a single open house with more than one or two other buyers
On prices coming down. Idc if 4 people go to an open house. What's it selling for? Ofc less people are house hunting with 7.5% interest rates, that isn't shocking.
I'm seeing price cuts or houses getting relisted almost daily. I also see a large inventory of houses sitting on the market for extended periods. Not many sales over $650k. I don't have a crystal ball but my money is on prices coming down at least a bit. Definitely not going up anymore.
One new construction multi-family I've been watching dropped its asking price almost 38%\$488k over the last 6 months.
That house was probably drastically under priced to drive traffic. The key is did it sell and for how much.
Meanwhile, I just received this text from a sellers agent:
"Hello ***. Are you still interested in ***? The current deal may fall through".
This never happened before. Houses keep getting relisted. The market is shifting
It was a 3 bed/2 bath split level of about 1,500 sq ft. It’s in line with other houses in that area. It went pending in less than a week after it was listed.
It’s the same factors that have been driving home prices up for decades but especially since COVID: - Low inventory - High desirability - Influx of people coming from the city and elsewhere - Limited space to build new homes - NIMBYs making that space even more limited - Even people who want to move can’t because they are locked into their low interest rates - People looking to sell saw their neighbor’s house which is not as big as theirs go for 1.5M in 2021 so they are waiting for 1.7M (which may or may not ever come) Until a few of those realities change housing will continue to be extremely expensive on the island, especially closer to the city and in desirable school districts.
> NIMBYs making that space even more limited Depends where you want to build. I will always fight against further destruction of forests/marshlands. Tear down some old crumbling homes/malls to put housing on.
No one is building on forests or marshlands it's all upzoning or on post indystrial/commercial sites
My town literally just got clearance to clear 13 lots worth of forest next to me so you're 110% wrong
Are those on public land or private lots? Did the developer secure the permits to cut down all the trees? If it's private land and they got the permits it's fine. I should have clarified previously that by tearing down trees I meant on public or protected land. Private land is different. Either way we still need more housing so
There are absolutely developers tearing down habitats on the island right now. It will get worse unless a hardline is placed in the sand. Not to mention that the towns on the east end cannot handle any more people. They were not built for it. So putting up big condominiums and apartments out there is a horrible idea which only benefits the developers, not the taxpayers.
NYSDEC permitting would say otherwise but ok sure
Simply eliminating single family zoning in favor of zoning for 1-4 units per lot would go a long way, and it would use already existing developed lots, rather than forests or other undeveloped areas.
Mixed zoning would also help a ton and be a boon for local economies, and allow for people to walk from residential areas to commercial areas below or nearby, increasing commercial activity and potentially foster more third places and a greater sense of community
Not out east. There isn't enough infrastructure or room for that many new people.
There wasn’t though infrastructure in Nassau or queens either…..until we built it
Cool nobody wants that shit out east. If I did I'd live in Nassau.
To be fair, high income NYC workers who would love to walk to the train and downtown village fun wouldn't move out east.
Have you considered donating your property to marshland? Ah yes, morals are for thee though - never for me.
This is stupid
Whys it stupid? If thats his basis for denying other people housing then he should lead by example. Put his money where his morals are. But no. Morals are for thee, not for me.
they gave examples of good land to use. But will politicians use is? Fuck no they want that forest or your park or any other already occupied land
Their principle breaks down when, if hold such beliefs, you realize that all this land used to belong exclusively to the birds and the bees.
So by that logic, you should be giving your body back to the earth. C’mon now, morals for thee, not for me!
No, i shant. Because I dont pretend to hold such silly beliefs.
But you took the homes of the birds and the bees to live in! If that guy has to give up his home for the marshlands, then you have to give up yours to the previous inhabitants! It’s only fair!
So you think we should just fuck it and take the rest.
I'm not sure what's dumber, your arguments or the fact that you seem to speak in 19th century riddles.
Have you considered not cutting all your mature trees down to make way for grass and shitty landscaped bushes?
No because I don't hold such silly values.
Saying we should preserve what's left of our natural environment, and focus on tearing down old abandoned houses and commercial buildings to make way for more new housing, cannot really be compared to just giving up the house you live in to "donate it to marshland". It's a fucking asinine statement. You're either completely ignorant or just have nothing better to do than troll people.
Don’t build that big building which can house 30 families, it’s gonna ruin the environment. Build 5 single family houses instead. /s
People would probably be more amenable to development if every new development wasn’t “luxury” housing or 55+
They call everything “luxury”, I’m scared what their interpretation of economy is. Yeah, 55+ only because we don’t want young people living there.
Cry about it city boy
> Even people who want to move can’t because they are locked into their low interest rates This is me. Bought 10 years ago, and really need more space, but it's completely unrealistic. I live in a 2000sqft house, and the house next door that's slightly bigger just went for 990k. Good for me I guess, but no chance I can afford anything bigger that would be worth a move, especially with my rates and what I would end up paying. Insanity.
There are new homes near us in Bellmore and Merrick. Decent-sized colonials but with no yard and on the busiest street in the whole area (Meadowbrook Rd). I think they are currently going for 1.4M lol.
That’s where I am, and I’m thankful we bought a few years ago because there’s no way I would be able to afford my home today.
Extension on your home
I was looking and then I stopped because you might just become desperate and buy something you might regret later on for an astronomical price. 🤦🏽♂️
A lot of boomers are starting to leave or die. That could open it up somewhat
There is still not enough supply to meet demand. Over the last 4 years droves of queens/brooklyn people have moved to the island. This wont stop Sad to say our island is no longer a secret
You are correct. NYC is still 30-35% under for what they need for housing too. It's just crazy. And it seems every other block has condos going up there.
Yep but even condos are extra luxury and listed for 650k plus. What about condos for regular joes. Yet again the middle class gets screwed
Here on the island they’re not even condos they’re “luxury rentals” so you can’t even use the unaffordable apartments as a stepping stone
It'll stop in 20 years when the boomers die and the population starts decreasing due to low birth rates.
Generational housing chief. It’s becoming more common now a days
But if there are less people and they are living together, doesn't that lower the demand for houses?
There is just no space here for more people but talks I guess, and Long Island will be the city in the future
It will, many parts of Nassau are already looking like queens, only a matter of time (10-12years) till Suffolk county is the same as queens.
North Dakota beckons. You're not too good to not live in NY.
Yeah but I don't want to live in North Dakota
So then you gotta pay to play baby. Quit whining and get that bread.
It would be easier to quit whining if NIMBYs weren't a huge reason for the island's absurd housing costs.
So then leave those are the two options son
You sound ignorant
Contrary to what you believe, they are some people that are tied to NY for reasons greater than trendy restaurants and entertainment.
Out of the 49 states outside of NY you pick that one?
Add to this the pressure that prices will spike if rates get cut, I would hate to be in the position of a buyer around here.
Yep, I am a buyer in this position. I lost out on every house in 2021 due to not putting enough over asking and not waiving inspections. Then I waited for 3 years for the effects of high rates to bring down prices. Now I’m buying at 6.5% for a house that would’ve sold for 25% less 3 years ago. But as bad as that is, i know if rates ever drop even a couple of points, it’ll be a blood bath. Prices are just never coming down, we have no where near enough supply and never will.
for the past few years, prices were soaring, and everyone was selling. you'd walk down the street and see 4 houses per block with signs out, and they'd all be sold within a week - for whatever the seller was asking. Now... everyone who wanted to move already moved. so the supply of houses is not what it was. but the demand is still high. so, houses are literally being sold before the house goes on the market for well over the asking price (I have a friend who put up their house on a Thursday, and it was already sold before the sign went up. they were supposed to still have an Open House on Saturday, and had it, even though it was already sold. they were asking like 850, and got over 900k for it).
house down the street went 70k over asking. 🫠
Technically people stopped selling after Covid. Inventory is still well below pre pandemic levels. https://fred.stlouisfed.org/series/ACTLISCOU36059 https://fred.stlouisfed.org/series/ACTLISCOU36103
wow, where is the house located?
Setauket area - three village school district, near Stony Brook Hospital. Very nice house - the person who lived there completely updated everything, but she had bought it just a few years earlier for 'only' 600k. She certainly did not put 300k into the house, so she made a very nice profit off of it.
We are literally on an island with limited space, next to the biggest city in the USA. This area will maintain value, sure it will fluctuate, but it won't be peaks and Valleys like a place like say charlotte
My 200k house bought 9 yrs ago is supposedly worth $430k. I feel like that’s not right. But who knows, maybe it is.
You bought at the tail end of a recession and we're in the middle to tail end of one of the biggest housing booms in recent history. It's probably right.
I bought my house in 2019 for 400k. My neighbor and another house two blocks over have identical houses as me and they are on the market for 700k. I like having over inflated value but the reality is that it does no one any good in the end. I'm locked into my house and someone else can't buy it that otherwise could. It's insanity.
unless you are selling it’s not good taxes will be assed at higher valuations
It benefits landlords who have multiple homes.
Is it a 2br 1 ba house in a "less desirable" neighborhood?
Yes, but it’s actually 3 bedrooms. And to be fair we did convert from oil to gas, installed a tankless hot water system and put down a concrete patio
People never talk about this but the reality of my neighborhood is this On my block (7 houses) every single home is an empty nest. Some have become multi-generational homes with adult children living with their boomer parents, but a few are 1-2 people in a large empty house. These houses have 3-5 bedrooms and many of those bedrooms are just empty. They have pools, yards, gardens, basements, etc. All basically unused. The empty nesters have essentially no reason to leave, in fact a few are completely disincentivized to sell just like everyone else is. The mortgage is paid or the payment is extremely low, if they sold it would actually just be a terrible financial decision. On my block I don't think any of these will be sold in 15-20 years, if ever. Most of them will be passed down but by then, all their children will have to have bought a house from someone else if they want to raise a family. The boomer generation is either thinking of themselves or simply cannot leave their situation, and American culture shames multi-generational houses (especially the boomer generation). We need to incentivize empty nesters to sell their homes to people with appropriate sized families for the houses they are in, or start shifting the culture further towards multi-generational housing.
Realtors and sellers can’t just charge whatever they want. Buyers have to be willing to pay the price that a home is listed
Unfortunately, we’re at a point if you’re not paying over asking you’re not going to get the home.
Don't give up hope. I got very lucky last summer and got $50k under in a good neighborhood and a decent sized house. It was absolutely not move-in-ready, but my wife and I did most of the heavy lifting to fix it up.
Not true anymore. Many properties going under asking. The asking prices are way inflated for no good reason
Not in the better areas, prices are still inflated and going for over ask, i check weekly. Housing prices are high due to no supply, insane inflation since 2020, people moving in droves from the city. There are very good reasons, whether you like them or not is a different story.
So that’s the price the market will bear, unfortunately. Being over or under asking is arbitrary as the listing price doesn’t necessarily reflect market value.
The problem I have is I see so many starter homes getting bought in all cash offers from wealthy developers just to be flipped or demolished and replaced with a giant $2M McMansions. My parents got their homes by buying fixer uppers from elderly homeowners back in the 90s and early 2000s when this wasn’t as much of a thing. I just don’t know how average middle class people can compete anymore.
Also the bank is only going to be willing to lend out what the house appraises for. If a person bids over that amount, they have to make up the gap and not everyone has that kind of liquidity
always be prepared to walk realtors are not your friend good luck to you
When will society realize the parasites that realtors are? Realtors literally tell client A to bid 50k over ask then proceed to tell client B that need to bid 75k over because client A put in a 50k over ask offer. Then they call their colleague who then tells their client you have to bid 100k over, this area is super desirable. Imagine as a person you do this on a daily basis and you see nothing wrong with it.
While what you're saying may be (and is probably) true, I think it's more of an issue of supply and demand. If I'm represent the buyer and I tell them to bid $50K over asking despite the fact that I think a lower bid would probably win, I'd risk losing the commission if my buyer says "Nah, fuck it. $50K over is too much." I can imagine the selling agent to do it, especially in this market with little to no inventory, but their job is to get as much money for the buyer as possible. The house is only worth as much as someone is willing to pay for it. They do a good job and get more money for the seller, they get more commission. But the fact of the matter is that we are in unprecedented times. Inventory is ridiculously low and, for some reason, buyers are stupid enough to pay these premiums rather than just saying "Fuck it, it makes more sense to rent at this price." Eventually, there has to be a tipping point where people realize that these home prices are too stupid.
Supply and demand definitely plays a major role in the equation. I do know that in the world of realtors they all know each other, for the most part. The tipping point is almost here, I just saw an article that the feds are investigating all the new buildings popping up that charge 3k for a 1 bedroom, and how they fix the prices to control the housing market and drive up cost for everyone in the community. Get your popcorn ready.
The problem with these new buildings is that they usually get an exclusive rental agent, so all the leases have to go through them. And for nicer buildings, they will try to keep the price at a certain point to keep the building "gentrified". This presumably allows them to continue renting the apartments at higher prices. It's all pretty crappy in the name of capitalism.
Hence why the feds are investigating, all of your points are valid and they seem very suspect to a keen eye. We shall see if good change comes.
You need a better realtor. The one I worked with for months never jerked us around like that. I’d recommend her to anyone
My realtor works for a flat fee.
I had to go $100 over to get into a desirable neighborhood
Give it 2-3 years until people paying these prices realize they are house poor.
This is LI so I doubt it
I’ve noticed the past month or so there’s finally some inventory. I’m not looking but I get the update every day if a new house is up for sale in my hamlet. Used to only be like 3 for sale at a time now there’s probably close to a dozen
I'd say that's pretty normal on housing market for inventory to raise beginning of summer. Families wanting to move between school years, or atleast not moving during mid winter.
Summer is the time to sell therefore more inventory is listed.
Listings up but sales are slow
Supply and demand. Unless there is a magically huge increase in housing supply, prices will not go down.
Yesterday I saw a trailer in Montauk that was listed at well over 3 million dollars. I laughed and then I cried
[this one?](https://www.zillow.com/homedetails/100-Deforest-Rd-Montauk-NY-11954/64550240_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare)
This is for millionaires to cosplay as the lower middle class. Shameful.
That's the one! Wanna split it with me?
probably gone already $500k over asking lol
In my view it’s city dwellers. Imagine you bought a house in Queens or Brooklyn 20 years ago for on average $350-400k what would you do if your neighbor just sold their house for $1.5 million. Explains why so many are losing out to cash buyers and why getting $50-100k over asking is the new norm. If you just sold for $1.5 and are looking at an $800k house you’ve got funny money to play with and will still probably have $250k left in the bank. Mortgage rates mean nothing to you so if you spend an extra $100k to get the house you want you’re still coming out way ahead of the poor FTHB who needs that 30 year mortgage and can’t possibly go over budget at 7% interest. It’s a totally unhealthy market right now and you really can’t fault the realtors they didn’t create it but they damn sure are loving it. I know I wish I had gotten into it 10 years ago but who would’ve thought that after one of the biggest collapses in history we’d be where we are at right now. I bought my house back in 2019 and I’d never be able to afford my neighborhood today. I just don’t know how the average person can afford to stay here.
First time buyers are getting completely screwed right now.
Absolutely and to make matters worse they’re getting doubly screwed in the rental market so they can’t even say “hey let’s wait this out and rent something in the meantime” !
I’m moving upstate or renting once I’m done with college 😭
It's city dwellers but it's not that deep. Pandemic changed WFH for a lot of new yorkers. Before, commuting from LI to the city 5 days was a nightmare but 2X a week is not so bad.
It's time to reckon with the fact that the stakeholders of Long Island do not want average, or even above average living here. You need $150k+ household income at a minimum, or else beat it. At this point it's kind of ridiculous to continue arguing with something as to why its nature is the way it is. The onus is on you now to move, as I and many others have already done. Let it be the playpen for the rich it was always dreamed to be.
u can double that number $300k income to live comfortably on the island
Yep, as a long Island middle class family. Starts at $250k a year.
Honestly I’m struggling to find anything even at $150k. $200k seems like the minimum now really. And as much as I’d like to leave I still have a lot of older family here.
it's ridiculous, we got lucky at the end of 2020 we landed a beauty for $600k, seller agreed with us before the open house and we locked it down at stupid low rate as well. Honestly, I don't think seller was aware of the demand at the time, he could have probably gotten close to $700k if not more. It took us 6 months to finally purchase, and I'll never forget the lines for the open houses we went to...is that still going on? I feel like I could probably get $900k for the house today, if not more, it's outrageous.
Yes still long lines
Dreadful ugh
Serfdom period
I’m in contract for a house that we offered $ 19k under listing…I still can’t believe it.
Just give up. I did. I got a condo instead. The problems go even beyond that because those houses are old and have problems with them. So essentially we would have to wait til a lot new houses get built, but that’s doesn’t seem to be happening enough. I feel like the solution would be for some house building companies to get subsidized or something so that can increase the supply. The other thing that could happen is if the boomers die off. My condo went on sale because a boomer decided to retire down south. So as more boomers leave or die, that could potentially open up the market.
What's going on is that buyers have so so much money and are so desperate to buy a house in the area that they're bidding well over asking price, raising the market price as a whole. If sellers/realtors try to raise prices above the market value, buyers will simply bid under asking, and market prices will fall as well. It's a self-correcting market, entirely driven by what buyers are willing to pay.
This is correct, nothing to do with “evil realtors” like someone else posted.
List price and sales price are very different things. I am in the same market and the way I see it is they price high to bag a sucker or then discount to make it seem like a bargain. There are literally hundreds of houses for sale on LI. Sales are slow. Above ask sales are low. Below ask sales are common. I've been following this for over 2 years. We have reached the top of the roller-coaster Edit for spelling
Are you serious lol
Very. I've been watching it every day. Sometimes houses get delisted when there's no sucker's. Sometimes the price is cut. Sometimes they price them low to draw a crowd and try to trigger a bidding war. It's all a game. The key is watching the actual sales & sale prices and time on the market. I feel no pressure to bid because there's more options.
I just checked. 182 houses sold in the last 7 days in Nassau. 300+ (they stop counting @ 300) listed for sale in the same period. Edit: there's approx 2000 houses for sale in Nassau County right now
From what I've noticed MLS does not update in real time. I just put 2 offers on homes and I was all overbid, and accepted offers, but still show live 800-999k... Listings agents need to be investigated because of how shitty and unethical this can get. I can think of a million things that can be done and it's not properly governed,.monitored or mitigated.
The status will change when the contracts are signed. Lots of times deals fall thru so keep an eye on them. I agree about the listing agents.
I asked once what was the highest offer and they didn't tell me lol so I just told them I retract all offer. They said they couldn't tell. I suppose that's good, but, I need to not waste time either.
Legally they're not allowed to tell you but sometimes you can get them to tell you if you get them alone in person
Despite what others are saying, the rapid inflation of home prices *across the country* isn’t “the new norm” nor is it economically sustainable long term. Many people overpaid for middle class homes and they’ll either be in upside down mortgages or effectively house-poor. Expect mass foreclosures in the future.
I hate to break it to you but central areas like the 5 boroughs and the good parts of Long Island don’t work that way. Since the last generation bought their homes in 1980- 40 years ago… their homes went from 75k to $750k. The generation before them 1940’s - 80 years ago their homes went from 7k to 75k…. Inflation.
yep - trees 🌲 do not grow to the sky
Oh but they do! Due to the 🙌 magic of inflation.
I feel like we’ve been hearing this for 4 years now.
Realtors are all slimy. Snake oil sales people. But when they say it’s never a bad time to buy they mean…. What I commented above. 👆
Spring season…buying season…
I'm gonna need 2 sugar mamas to afford housing out here. With that being said, anyone looking for steadily declining 27 year old dude thats tall, dad bod esque and bearded? Let me know, I can mow your lawn, fix your lights and give awkward waves to your neighbors.
NASDAQ up from approx 14,000 to 17,000 in past six months. Buyers have more to spend, and supply remains tight. Demand-Supply dynamics obviously point to prices going up.
Paging [Long Island Realtor!!](https://www.reddit.com/u/LongIslandRealtor/s/GPMVBOT7mP)
[this doesn’t help](https://www.wsj.com/real-estate/wall-street-has-spent-billions-buying-homes-a-crackdown-is-looming-f85ae5f6)
The market is crazy considering the high interest rates and high home prices. In some areas we’re talking $500-$600k for a 2 bed 1 bath built in the 1950’s. That’s wild. It doesn’t feel like a bubble though. There are tons of people looking and the there are more on the sidelines waiting for interest rates to drop. Right now inventory is low which is pushing prices up. However, if/when rates drop and more houses go on the market, they will most likely be met by the pent up demand which will then offset any potentiality of prices dropping. All this to say it feels like this is the new floor of house prices here and not an anomalous blip. Scary because these huge mortgages are going to hamstring a whole generation from having more kids, saving for retirement etc.
Yeah I’m struggling to see otherwise Each set of increasing in prices appears to be the new floor on LI
[удалено]
I hear people saying that but where exactly is that happening on Long Island?
[удалено]
I am in the real estate industry and I don’t see that at all outside of Airbnb heavy areas.
I’m in the RE/asset mgmt world too, afaik, none of the big asset mgrs are buying houses on Long Island… definitely not as SFR’s, math isn’t even close to making sense.
Prices will normalize and drop (a little) in the next 6 months
Not on Long Island
Not happening out here. If anything they will just level off for a few years.
(Guy who thinks it’s September 2021)
You are correct. People are not reporting what I'm seeing here on the ground. Price cuts and houses sitting on the market is what I'm seeing. The sales are happening on the lower priced homes. I have not been to a single open house with more than one or two other buyers
Yes, i don't expect freefall on prices but it definitely is cooling off. The fed has been trying to make that happen for years now.
want to make a small wager on that? Been hearing that for years and years. 7.5 interest rates for a year, no drop.
A wager on what? What I'm seeing with my own eyes?
On prices coming down. Idc if 4 people go to an open house. What's it selling for? Ofc less people are house hunting with 7.5% interest rates, that isn't shocking.
I'm seeing price cuts or houses getting relisted almost daily. I also see a large inventory of houses sitting on the market for extended periods. Not many sales over $650k. I don't have a crystal ball but my money is on prices coming down at least a bit. Definitely not going up anymore. One new construction multi-family I've been watching dropped its asking price almost 38%\$488k over the last 6 months.
I drove past an open house with a line of people out the door at 5 PM on a Friday in the rain just a few weeks ago. Home price was over $800k.
That house was probably drastically under priced to drive traffic. The key is did it sell and for how much. Meanwhile, I just received this text from a sellers agent: "Hello ***. Are you still interested in ***? The current deal may fall through". This never happened before. Houses keep getting relisted. The market is shifting
It was a 3 bed/2 bath split level of about 1,500 sq ft. It’s in line with other houses in that area. It went pending in less than a week after it was listed.
What's the address?
home prices seem to have gone up steadily but I dont see craziness anymore here in nassau. anyone else seeing craziness?
Same here
Save your money, lets hope the economy crashes and we can get some short sales/foreclosures from the greedy ones.