Even though the number of listings taken in Nassau County since January 1 2018 has outpaced last year’s rate by 19% the absorption rate continues to shrink to 3.9 months’ worth of inventory on May 1st.
Syosset follows the general county pattern with listings up 7% and absorption rate at 3.3 months. The absorption rate on May 1 2017 was 3.5 months.
With interest rates slowly creeping up, the aggressiveness of buyers continues to accelerate. Many buyers are presenting their first offer at or over asking price and gird themselves for the ensuing bidding war. The sellers’ upper hand in the market continues unabated with no end in sight.
With so many good offers on the table, sellers are concentrating more on the financial strength of the offers – anticipating issues with appraisals. Although there have not been major issues on the appraisal front yet, it is always a possibility in this frothy market.
Our advice to sellers – continue to make hay while the sun is shining, this too will pass. Buyers who don’t want to run into the future threats of higher prices combined with higher interest rates need to sharpen their pencils and shore up their financials. Pre-commitment from a mortgage lender is a good tool for buyers who don’t have all cash offers.