2016 was a good year for real estate sales on Long Island and in Syosset. 395 homes were placed on the market this past year. That was 47% higher than the previous year. 268 homes sold(closed) during the year. That is almost 22% more sales than 2015. The average selling price was up 6% to $737,920. The days on the market dropped from 87 to 82. The percentage of listings sold dropped from 82% to 73%. Even in a great market 27% did not sell. This can be due to poor motivation on the sellers’ part, mispricing the listing for the market or poor marketing by the real estate agency. Even in the best markets not all listings sell.
2017 starts off with 75 homes on the market which is a 4.4 months’ supply. During 2016 the absorption rate (how many months’ supply) averaged just under 5 months. The industry standard is 6 months’ worth of inventory. When the absorption rate is at 6 months there is an even playing field between sellers and buyers. Under 6 favors the sellers. Over 6 favors the buyers. We are and have been in a sellers’ market for 2 full years now. Two big questions overshadow the 2017 market. Will we have enough inventory to keep up with buyer demand and how will rising interest rates change the market dynamics? We will be carefully watching these two trends and report back regularly.