The coronavirus has changed life as we know it. For Long Island real estate though, that’s actually been a good thing. A recent article from Newsday reported that the sale of luxury homes on Long Island (homes listed at $1 million or more) surged last month, up 151% from a year ago!
What’s driving this sudden demand for high-end homes in the midst of a global pandemic? A few reasons – and all of them tied to the effects of the coronavirus.
First, in the wake of New York City’s lockdown earlier this year, many people are fleeing the city for the suburbs. That includes wealthy New Yorkers who are snapping up some of the market’s priciest homes. After the city spent several weeks as the epicenter of the coronavirus in the United States, people realized that living in a densely populated city might not be for them. Long Island’s proximity to the city makes it the ideal choice for those who still need or want to be near New York City.
Second, with most US companies moving to remote or virtual work indefinitely, some people are taking advantage of their newfound location freedom to move out of the city. They’re banking on the fact that their jobs might stay totally remote in the future or include greater flexibility to work from home. Even if that’s not the case and these new Long Island residents have to go back to office life in the future, Long Island is an ideal choice for those who need to commute to the city.
Third, low interest rates are incentivizing people to buy. Some Long Island luxury home buyers might have been contemplating making a move to the area for years. With interest rates near historic lows, there’s never been a better time to make that dream a reality. Though taxes on Long Island are a bit higher than in the city, most buyers are going to be able to get more property for their money. Not to mention a change of pace and different lifestyle.
Fourth, with people spending even more time at home, many Long Island residents have realized their home isn’t really working for their needs anymore. Maybe the home is too small for their growing family or the street is too noisy. Maybe they’ve been dreaming of buying a home with a big backyard and a pool for a while now. Whatever their motivation, many people have emerged from the coronavirus lockdown inspired to move up from their current home.
What does this sudden uptick in luxury home purchases mean for the Long Island market going forward? If you’re a seller and thinking of selling your home, now is the time to list! Even if your home doesn’t come with a luxury price tag, Newsday reported that the Long Island housing market saw an increase in the number of sales in all price ranges across the board, except for homes priced at $199,999 or less. We’re also facing low inventory conditions on Long Island, which means there are more buyers than homes available. Again, this is great news if you’re selling because you’ll likely snag a great price for your home.
On the buyer side, while the market is competitive, it’s not impossible. We’ve helped many of our clients secure a new home this summer. Working with the right team that knows how to put a strong offer together is the key to landing the home of your dreams.
Want to know more about how the market is doing in your neighborhood or zip code? Thinking of selling or buying soon? Reach out to us and let’s get started!
The Pesce & Lanzillotta Team, at BHHS Laffey International Realty
Office: 516-888-9711
Email: info@pl-team.com
