Charles Rutenberg Realty’s Joe Moshé Says Nassau Home Sale Prices are Following Upward National Trend
December 12, 2016
Joe Moshé, Broker/Owner, Charles Rutenberg Realty, Inc. (CRRLI), says the strong home sale prices in Nassau County is a reflection of what is going on nationwide and, if the trend continues, they could reach its pre-recession peak soon, as the national sales price has already done.
The recently released S&P CoreLogic Case-Shiller U.S. National Home Price Index showed that single-family home prices nationwide rose at an annual rate of 5.5 percent to an all-time high in September. That is an improvement of the previous month’s 5.1 percent year-over-year increase and surpasses levels before the housing crash hit
In Nassau, October’s median sales price was $470,000, which is up 9.3 percent from last October, when it was $430,000, according to data from Multiple Listing Service of Long Island. While the current sales price is 6.5 percent off from its 2007 pre-recession peak of $502,500, if the trend continues, prices could exceed 2007 levels during the spring buying season.
In Suffolk, the median home price in October was $339,830, which is a three percent increase over the October 2015 price of $330,000, according to MLSLI. Unlike Nassau, which saw a recent upward trend, Suffolk is in its second straight month of declines after peaking this year in August, when the median sales price was $352,000. Even worse, the October median sales price is 19.1 percent lower than the peak price of $420,000 in 2007.
The rise in home prices in Nassau could be attributed to a steady decline in housing inventory, from 6,295 available homes in May to 5,103 available in October. “When demand grew in Nassau County and fewer homes were available on the market, that drove up prices,” Mr. Moshé says. “Nassau home prices are starting to make a turnaround, while Suffolk’s home prices continue to plunge.”
After the Long Island Real Estate market bottomed out eight years ago, home prices have increased — albeit moderately — at an annual rate of 2 to 3 percent. With the fluctuation of home sales prices, Mr. Moshé says he does not see overall prices in Suffolk making a return to pre-recession levels anytime soon.
“These are probably truer values than those in the boom years,” he says. “Unless there are major changes in industry in Suffolk County that is going to create a better economy and a greater demand for housing, I don’t see that happening. It’s a tale of two counties — Nassau has stronger home sales due to its proximity to New York City, while Suffolk is too far away to benefit and has not experienced a local driving force to increase demand.”
The National Association of REALTORS® has named Charles Rutenberg Realty, Inc. among the top five firms in New York State. As one of the nation’s fastest-growing Agencies, with nearly 5,000 associated Real Estate Professionals nationwide, Charles Rutenberg Realty, Inc. is proud to serve Long Island and Queens, Brooklyn, Bronx, Westchester, Putnam, Rockland and Orange Counties. For more information, visit www.crrli.com.