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A Cool Summer for Long Island Real Estate

By
Real Estate Agent with Century 21 American Homes

Just as the temperature has been moderate this summer on Long Island, so too the real estate market is a bit cool.  Although inventory has increased over last year’s levels, sales have not kept up. The absorption rate has risen slightly in the whole market but some local markets have been more affected.

In Nassau County the inventory rose from 7356 homes on the market to 7618, an increase of 3 ½ %.  Sales though slightly higher have not kept pace so that the absorption rate at which the inventory is sold rose from 6.6 months’ worth of inventory to 6.8 months.

In Suffolk County rose from 10298 homes on the market to 11002 a 6.8% rise over last year’s levels. Sales again have not caught up with the absorption rate moving up from 9.1 to 9.3.

Syosset has been more greatly affected with inventory increasing from 99 homes to 131, a 32% increase and sales dropping from 28 homes to 22. This moved the absorption rate significantly from 3.5 months to 6 months.

 

With both interest rates and home prices staying in a narrow range there is no reason for the buyers to feel a sense of urgency. A nice jump in interest rates would probably get a lot of buyers off the fence but who knows when that will happen.