The weeks after Labor Day traditionally bring a “second wave” of real estate to the Long Island market. Though with high interest rates, sustained inflation, and low inventory, can we expect to see the same trend hold true this fall?
Our team had sold more than a billion dollars in real estate combined. We’ve seen hot markets and slow markets. We’ve helped our clients navigate the challenges of the pandemic years. Though no one can predict the future, we can use market trends and data to make educated predictions about what will happen with Long Island real estate this fall.
Interest Rates Will Continue to Present Challenges
News broke over the weekend that interest rates had officially reached a twenty-year high. According to Realtor.com, mortgage rates averaged “7.09% for a 30-year fixed-rate home loan as of Aug. 17.” Realtor.com also reported that home prices have risen slightly compared to this time last year.
Although interest rates are high, they are far from the highest they’ve ever been. Still, it creates affordability challenges for many home buyers. When interest rates are higher, your purchase dollars don’t stretch as far. That can be the difference between getting a home in your dream neighborhood and settling for something you can afford.
In addition, many homeowners have previously locked an interest rate that is lower than today’s rate. Unless they have a good reason to sell, many prospective sellers will elect to stay where they are and maintain their current mortgage interest rate. This is a big factor in what’s keeping inventory low.
Though Home Buyers May See Some Relief This Fall
No matter what’s happening with the economy or interest rates, many people try to time their move to occur during the spring and summer months. Even people without children tend to move during the warmer months when the weather is favorable.
If you are a prospective buyer, continuing your home search through the months of September, October, and November could pay off. Competition for the low inventory of homes for sale over the summer helped fuel multiple offer scenarios and quick sale times. While buyers should still be prepared to move fast this fall, you’ll likely stand a better chance of securing a great property.
Our Predictions for Long Island
While this year’s “second wave of real estate” on Long Island likely won’t be as pronounced as in recent years, inventory has slowly increased over the past few months. With interest rates spiking again and less determined buyers putting their search on hold, we should see Long Island housing inventory increase relative to the number of buyers who are still actively looking. That’s good news for both buyers and sellers, presenting opportunities to make a fair deal and quick sale before year’s end.
Need to move between now and the end of the year? Whether buying or selling, the Pesce-Lanzillotta Team is here to help. Contact us to plan your next steps today!
The Pesce & Lanzillotta Team, at BHHS Laffey International Realty
Office: 516-888-9711
Email: info@pl-team.com
