Long Island Waterfront Homes Mid-Year Market Trends Report
There are several different types of waterfront homes on Long Island (ocean, bay, sound, river, canal, lake), and each has its own appeal. Waterfront homes can be found throughout Long Island in a variety of towns, price ranges and bodies of water.
Because of the vast offerings, it is a bit more challenging to perform a simple analysis of the overall trend for waterfront homes. This waterfront market report is a recap of the first half of the year. The information provided will include the number of new waterfront listings that came on the market during the month of June, in addition to the number waterfront homes that closed within the month. Average listing prices and sales prices will also be provided, along with a trend analysis. For this report, I have included the data from the first and second quarter of 2008 and 2007 as well.
If you have any questions about waterfront homes on Long Island, please feel free to contact me directly. If you would like to stay current with the waterfront market on Long Island, you can either check back each week for my weekly update of new listings, or send me an e-mail requesting to be put onto an e-mail list to receive the updates automatically. My contact information is listed at the bottom of the page.
The following is the market data for the first half of the year for both 2007 and 2008. As I mentioned earlier, the disparity between waterfront home prices on Long Island makes doing the market trend analysis a bit of a challenge, which is why the report is broken down by price ranges, rather than location. The price ranges are as follows: under $1 million, $1,000,000 - $1,999,999 and $2 million and over. Using these price ranges allows me to provide a more accurate depiction of the market than grouping all waterfront homes in one general category.
These trends are for the market, and do not necessarily translate to any individual home. If you are thinking about selling your waterfront home, you should have a market analysis done for your particular home. If you are looking to purchase a waterfront home, I strongly suggest hiring a buyer's agent to help you "navigate the waters" of the current real estate market.
LONG ISLAND WATERFRONT HOMES - UNDER $1 MILLION
TREND ANALYSIS: Inventory is the key number that is driving the waterfront home market. By way of comparison, the inventory has grown significantly since 2007. The rise in inventory has put pressure on home prices, the ratio between sales price and listing price and days on market. While there have been more closings of waterfront homes in this price range than there were in 2007, the amount of new listings at the mid-year point has nearly doubled.
CONCLUSION: Waterfront homeowners that are motivated to sell their homes must take into account that there has been a dramatic rise in inventory, and there is a lot of competition for homebuyers. Now, more than ever, it is essential to price your home for today's market conditions. The only homes that sell are going to be the ones that are priced properly.
OPPORTUNITY KNOCKS for homebuyers looking to purchase a waterfront home for under $1 million. Inventory is up and prices are down. Given the uncertainty surrounding the current mortgage market, homebuyers would be wise to take advantage of the opportunity that is being presented right now.
LONG ISLAND WATERFRONT HOMES - $1,000,000 - $1,999,999
TREND ANALYSIS: The inventory is on the rise, but at a more modest rate than waterfront homes under $1 million. Despite the rise in inventory, there hasn't been a notable decline in average sales price. Since there is a limited amount of activity in this price range, the numbers can be easily skewed by having more homes sell closer to the high or low end of the range. Waterfront homes in this price range are staying on the market longer than 2007, although the June numbers did show improvement.
CONCLUSION: Waterfront homeowners in this price range should take note of the increase in inventory, as it creates more competition for the homebuyers that are out there. This is not the time to be putting your home on the market to "test the waters."
Homebuyers that are looking for a waterfront home in this price range should look at this as a good opportunity. There is a greater selection of homes to choose from, and the prices have come down a bit since 2007.
LONG ISLAND WATERFRONT HOMES - OVER $2 MILLION
TREND ANALYSIS: This segment of the waterfront home market is the most difficult to analyze because there is a very limited amount of data. Aside from the lack of data, there is also the fact that waterfront homes can sell for well above $2 million, and any multi-million home sale can create vast fluctuations.
CONCLUSION: While analyzing the overall segment of the market is challenging, there is some information that can be gathered. The inventory of homes is on the rise, although not be a large margin. The average days on market is on the rise, although this was not the case for the June 2008 closings. The ratio between sales price and list price has widened.
Homeowners and homebuyers should seek out professional advice as to the current market value of a home.