Long Island New Construction Homes - Mid-Year Market Trends Report
For the purpose of this report, new construction is defined as homes that were built within the current and last calendar years (2007 & 2008).
It was discussed in the original post that there is not a lot of new construction on Long Island by way of comparison to homes that are being resold. However, there is a wide variety of new construction across Long Island in various price ranges and towns. Although there are very few large developments being built on Long Island, there is a growing inventory of new construction homes to choose from.
By studying the trends in new construction, you will be able to track the inventory of new homes on the market, in addition to the new homes that have sold. The information provided in this month's report includes the number of new homes that came on the market during the month of July, in addition to the first and second quarters. This report also includes the number of new homes that closed during the month of July, in addition to the first and second quarters. Average listing prices and sales prices are also be provided, along with a trend analysis.
If you have any questions about new construction on Long Island, please feel free to contact me directly. If you would like to stay current with the new construction market on Long Island, you can either check back each week for the latest update, or send me an e-mail requesting to be put onto an e-mail list with the updates. My contact information is listed at the bottom of the page.
The following is the market data for the month of July. The reports are broken down by homes that are priced under $1 million, homes between $1,000,000 - $1,999,999, and homes priced at $2 million and higher.
LONG ISLAND NEW CONSTRUCTION HOMES - UNDER $1 MILLION
TREND ANALYSIS: Inventory numbers are still high, but they have declined in comparison to the first two quarters of 2008 and July of 2007. The average list price and average sales price continued to rise, and the ratio between the average sales price and list price remained fairly steady, although the number of days on market increased.
There is still plenty of inventory available for those that are looking to purchase a new home. The declining rate of new inventory is likely the result of less housing starts and more closings due to price reductions.
Homebuyers should keep in mind that the prices may begin to rise again as inventory declines. This is an excellent buying opportunity for those that are in the market for a new home for under $1 million.
LONG ISLAND NEW CONSTRUCTION HOMES - $1,000,000 - $1,999,999
TREND ANALYSIS: There is not enough data in this price range to accurately determine the market trends, especially when you factor in the wide price range. Inventory continued to rise in comparison to the first part of 2008 and July of 2007.
The bottom line is that there are good opportunities for homebuyers looking for a new home in this price range.
LONG ISLAND NEW CONSTRUCTION HOMES - $2 MILLION AND OVER
TREND ANALYSIS: There is even less data to work with in the $2M and up range than the $1-2M range. Due to the limited amount of activity, it is not possible to determine a market trend with any accuracy. The only data that is worth noting is that the average days on market was very low for the sales that did close. Since the ratio of sales price to list price is solid, the likely explanation for these quick sales is that the builders priced the homes to sell so that they didn't have to carry these expensive homes for any length of time.
Homebuyers looking in this price range may very well find some opportunities that were unavailable during the height of the seller's market.
CONTACT: Adam Waldman, RE/MAX Best, 631-357-2036, adam@adamwaldman.com
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