The competitive Long Island, New York real estate market Soaring mortgage interest rates Data released Thursday will prompt a slowdown in many other parts of the country.
Data compiled by real estate firm Douglas Elliman and appraiser Miller Samuel show the median sales price of homes sold on Long Island hit a record high in the third quarter, which includes July, August and September. reached an impressive $620,000.
+2.5% QoQ, +6% YoY.
According to the companies, the average number of days a home was on the market in the third quarter was just 41 days, the shortest recorded in more than 20 years of available tracking data. This data excludes sales generated in the Hamptons and North Forks of Long Island, which are tracked separately.
The market remained enthusiastic even though mortgage rates continued to rise towards 7% as the Federal Reserve hiked interest rates. The average 30-year fixed-rate mortgage has reached its highest interest rate in 20 years, driving up costs for buyers and forcing many sellers to move to other markets. to lower their asking price.
Jonathan Miller, CEO and president of Miller Samuel, says rising mortgage rates are weighing on demand, while a shortage of available inventory is helping to prevent previous large price declines. … apparently … Listing inventory is down nearly 6% year-over-year, and the number of closed sales is down 16% year-over-year.
The extent of the slowdown in the overall housing sector will depend on whether the Federal Reserve continues to raise rates or “turn around” to a more moderate fiscal policy.
“The pandemic-era housing boom was not fueled by Wall Street financial engineering, like previous housing booms, but because low mortgage rates remained too low for an extended period of time, resulting in the disappearance of the housing supply. , prices have a substantially more solid foundation underneath them,” Miller told the Post.
“But at this point, it’s up to the Fed how long this slowdown lasts,” Miller added.
Long Island home prices have held up so far, but it’s unclear how long this trend will last given the affordability crisis facing buyers.Freddie Mac says average 30 year fixed Interest rates on mortgages reached 7.08% on Thursday. This is his highest since April 2002.
Some experts warn U.S. house prices may finally fall as much as 20% by next year.