The following is an analysis of the Long Island housing market for the month of February as reported by the Multiple Listing Service of Long Island:
"Despite extreme weather conditions this winter, contracted home sales activity on Long Island has seen a surge in February compared to January. Many buyers that have been sitting on the sidelines are starting to see the window of opportunity quickly closing. Interest rates that cannot stay this low for too much longer has serious buyers searching for a new home again." - Dorothy Aschkar, 2011 MLSLI President
The closed median home price on Long Island, which includes Nassau, Suffolk, and Queens, for February 2011 was $355,000 representing a 1.4 % increase over the year prior. Nassau County reported a closed median home price of $396,750 representing a 3.1 % increase from the prior year.
Suffolk County reported a closed median home price of $300,000 compared to $325,000 from the prior year that represents a 7.7 % decrease and Queens reported a closed median home price of $360,000 which represents the highest gain of 3.5 % over a year ago. The contracted (pending) median sales price of a Long Island residential property was $341,500 in February 2011, down 2.4 % from $350,000 in the same period last year.
Inventory is up slightly with 29,655 units in February 2011 compared to 29,175 a year prior. Buyers still have plenty of inventory to choose from. Inventory levels should expand as the spring market revs up.
Overall, experts in the industry see the development of broad fundamentals for a gradual housing recovery. Job growth, high housing affordability and rising apartment rent are conducive to bringing more buyers into the market. Some buyers may be looking to real estate as a hedge against potential long term future inflation.