This month’s market is Long Island, New York which contains Nassau County and Suffolk County – a real estate market that has seen record breaking home sales and median prices throughout 2020. These property sale numbers are projected to continue rising into 2021, but rental property vacancies in the area continue to increase as well, making the area better suited for short-term real estate investments for the foreseeable future. There are an abundance of populated cities to highlight in Long Island, so we will be focusing on the entirety of Long Island and then its two county markets for our data averages.
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Home Sales White Hot
- $534,000 Average Sale Price
- Sale Prices Up 17% Year Over Year
- 4.5% Housing Investory Decrease Year Over Year
- Days On Market Average 56
- 3138 Homes Sold In December 2020
Like many suburban areas surrounding New York City, Long Island is benefitting from the mass migration occurring due to COVID. People are looking to own property rather than rent tiny apartments, but they want to remain near the cultural centers and transportation hubs that NYC provides. As of December 2020, homes in Long Island are selling on average for $534,000 which is a 17% increase from the previous year. There’s little need for price negotiations due to high demand with low inventory, so homes are typically selling within 1% of the initial asking price. The lack of inventory continues to steadily trend downward, with inventory decreasing by 3.5% from November to December and representing a total decrease of 4.5% from 2019. Homes are remaining on the market for an average of 56 days and most sales went through with a 19% down payment from the buyer, a little lower than the national average. The most incredible detail is that in December alone, Long Island saw 3138 homes sold, a record for the area and the sign of an incredibly healthy real estate market!
Nassau County Real Estate Statistics
- $607,000 Average Sale Price
- Sale Prices Up 13% Year Over Year
- Days On Market Average 39
- Average Days On Market 35% Shorter Year Over Year
Nassau County is located right outside of the city and has seen a huge boost to its real estate market since the second quarter of 2020, continuing to thrive up through now. The average sale price for homes in the area is $607,000, which represents a 13% increase from the previous year. The number of homes that sold in Q4 2020 reached 1,613, which is a three-year high and a 38% increase from 2019. On average, homes in the area are remaining on market for 39 days, which is a 35% decrease from the year before and a major reason why fix and flips are on the rise in the county. The following property types reached three-year highs for average sale prices in December 2020: single- and multi-family homes, condos, and co-ops. Each of those property types also reached three-year highs for number of units sold, with their combined total sales representing a 35% increase in property sales from the previous year. With these stats holding steady and seemingly improving quarter after quarter, Nassau County looks to remain a profitable sector for real estate investors deep into 2021.
Suffolk County Breaking Records
- $475,000 Average Sale Price
- Sale Prices Up 19% Year Over Year
- Days On Market Average 29
- Average Days On Market 46% Shorter Year Over Year
- 1678 Homes Sold In December 2020
Suffolk County moves further away from New York City and makes up the majority of real estate for Long Island, encompassing the eastern two-thirds. Homes in this county are selling for $475,000 on average, marking a 19% increase from the previous year. These prices are the highest prices Suffolk county has ever seen. More than half of the homes sold in Long Island for December occurred in this county: 1,678 sold which represents a 19% increase in sales from 2019. Its proving to be the more popular of the two counties with homes remaining on market for an average of 29 days, which is a dramatic 46% decrease from December of last year. Single and multi-family properties are the most popular property types in the area, with 1,488 of the homes sold Condos for sale have remain practically unchanged from the last few years, and co-ops have reduced in 2020. Since mostly single- and multi-family properties are being sought after from buyers, those are the current property types that investors should keep an eye open for going into 2021 to take advantage of these sky-high sales prices.
Final Thoughts
After examining the data, it seems like the Long Island NY area is currently a hot seller’s market that favors short-term real estate investments over the long-term buy and hold strategy. Property type demand are mostly similar between both counties, with single- and multi-family properties dominating both areas while average sale prices for both continue to rise. While this market is growing increasingly competitive, savvy real estate investors who can spot a good deal or have a strong network to help them find property can certainly take advantage of the market demands and turn a quick profit through fix and flips or even new construction if land parcels are available. The most important trend to note is the upward trajectory for demand and sale prices in both counties since the start of Q2 2020- this rise seems on track to continue far into 2021, meaning its not too late to jump on the bandwagon. If you’re ready to fund your next real estate investment: fix and flip, new construction, or increasing your rental portfolio, contact Asset Based Lending today.