HOME SALES IN AUGUST ZOOM!

Existing-home sale closings, including single-family homes, townhomes, condos, and co-ops, increased 10.5% YoY (year-over-year) as of the end of August and 2.4% MoM (month-over-month) for August compared to July.  This marks three consecutive months of gains in home sales.  Conclusions regarding these results should be tempered by the fact that the Nation was in lock-down for several months prior and New York also imposed very restrictive rules for marketing and selling homes even after things opened-up a bit in April.

National Association of REALTORS® reported that existing-home sales in each of the four major regions of the U.S. saw month-over-month and annual growth.  Home prices in August climbed 11.4% compared to a year ago, reaching a median of $310,600. Prices rose in every region of the U.S. last month.  The Northeast saw the largest monthly improvement in home sales – making up for lost ground in prior months.  Existing-home sales for the Northeast increased 13.8% in August (MoM) and 5.7% YoY. The median home price was $349,500, up 10.4% YoY.

Housing inventories which have been historically tight, dropped even more with the sales growth, putting upward pressure on home prices. Total housing inventory at the end of August was down 18.6% from last year - a three-month supply.

First-time home buyers accounted for 33% of home sales in August, up 31% from last year.  Investors and second-home buyers accounted for 14% of homes sold in August, equal to a year ago. Investors and second-home buyers tend to make up the biggest bulk of all-cash sales. All-cash sales accounted for 18% of transactions in August, down from 19% in August 2019.

On the North Fork, real estate sales generally slow down after Labor Day, and we are seeing some of that, although it appears that the population this fall has increased. More people staying around our beautiful North Fork will certainly help business owners.

               If you are thinking of selling your home in the near term. Call us at 631 765 5333. Do it now while the weather is good and COVID numbers are low.  Please don’t procrastinate.  Take action now, based on what you know.  None of us can predict the future…we can only pray that the worst is over and hope that things will go back to normal in due time.

Source: National Association of Realtors, Home Sales hit 2006 Levels, ‘Continue to Amaze’, September 22, 2020

“Work-From-Home” 2 Million Potential Buyers Nationwide

           The coronavirus pandemic has caused many companies to resort to remote work and the result to their surprise, has been higher productivity.  Certainly, part of the reason is because employees can work varied hours and balance life-work demands. Also, the elimination of the time spent preparing to go to work and commuting, has added to the work day.  As such, many companies are continuing the “experiment” or have already decided that work-from-home is here to stay. 

A recent study has projected that remote work could impact the homeownership rate for almost 2 million renter households.  This potential depends on location, home affordability, and income level of the renters.  In New York City, for most renters the price of a spacious city apartment is out of reach, but the monthly rental is affordable.  In many cases therefore, the option of purchasing in the suburbs   has become feasible with the elimination of a daily commute.  Some renters have actually made the decision to keep their apartments in the city for convenience and move to a new home in the suburbs.

“The tipping point was envisioning both of us working from home indefinitely alongside our daughter and a second child on the way,” said Chris Chan. “We wanted to maintain the balance between space and proximity to the city. We could get more for our money just outside city limits and we’re still only 30 minutes from Grand Central Station.”

Proximity to New York City, brings buyers to Long Island- where there is a wide range of home/condo prices.  Many of these potential buyers are seeking to escape tight quarters and afford themselves space to work with privacy and also, have room for the family to live comfortably and safely.

The North Fork, which is roughly 2 hours from Manhattan, has now become a suburb of New York City! Who would have thunk it! 

Our ad today focuses on homes where you can work and play. CALL US!!!!

              

Source: RISMedia, September 9, 2020.