All Things Real Estate: Buyers need to act quickly in this market

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All Things Real Estate: Buyers need to act quickly in this market
Philip Raices

If you don’t know or are not aware of it by now, our housing inventory is as low as I can ever remember going back 50-plus years.  That and our higher interest rates compared to our lowest 2.50% rates back in 2020-2021 have drastically altered the purchasing and selling decisions of many over the last four years.  Moreover, prices have been another major stumbling point for the majority of purchasers searching for their “next place to call home.”

Once a home, HOA, condo, or co-op is found, there is no time to waste in securing an inspection and the most crucial contract to be signed and executed by both parties.  Having your commitment letter will also be critical in proving your qualifications and capability in making sure you can complete and finalize the transaction.  This is especially true in the purchase of a co-op, when one must get approved by a co-op board.

The speed in which you or you and your significant other make a decision on a purchase or even a rental in our current market will many times determine the success and outcome of whether or not you will take possession of the property.

In this still frenzied market faced with tstrong demand one cannot vacillate or hesitate in making that important decision.  For most, it is one of the most important decisions that you will ever make in your lifetime.  Moreover, time is of the essence in our current housing market, which necessitates a very quick decision especially when an offer is accepted.

What is worse is when a bidding war occurs, which seems to be the norm lately on Long Island. You must be ready, as they say, to “do or die” to come out the triumphant winner.  Then your emotions set in and this can be a very scary, worrisome, and devastating situation.  Some need a home and can surely afford the cost of ownership.  Then some want to buy a home, and when reality sets in, it’s called “champagne tastes and beer pockets” as the buyers are potentially going overboard in what their budget realistically says they can qualify for in the view of their lender.  Banks are being much more conservative in their decision-making and no longer provide financing just because would-be buyers are breathing and have a pulse as they did before the implosion of our market in 2008.

Never let your emotions get the best of you, your wife, and/or girlfriend, no matter what.  Although your decisions may in most occurrences have to be quick and decisive, you aren’t yet committed and contractually obligated until the papers are executed by both you and your seller.  This may be the most expensive purchase of your lifetime, and you must be financially and mentally prepared to pull the trigger so as not to lose the home to another hungry bidder.

Unfortunately, some are not truly ready and may not have been properly advised by their agent, mortgage person, or attorney as to the pitfalls and issues innvolved in the best and most efficient way to approach their purchase.  A checklist of important things to think of should be made in advance of going out and searching for a place.  Your agent should be knowledgeable in their expertise and years of experience to guide you in going over what is most important.  It comes down to educating the client, which will minimize and hopefully eliminate the major mistakes that can come along the way during the process of either searching or the eventual purchase. Missteps could cost substantial sums of money and cause unnecessary stress in the end.

I will provide weekly stats for the previous month with a different town throughout Nassau County so my readers will be aware and updated as to how their market is progressing.  This week I will highlight Great Neck where I reside.

Residential Sales:

1/2022                    1/2023            1/2024

Average Sale Price:      $1,219, 194    $1,219,705      $1,296,936 (+6.4% yoy)

Median Sale Price:        $1,200,000    $1,290,000      $l,260,000 (half the homes are more and half the homes are less than the numbers shown) (-2.3% yoy)

Condo Sales:                    1/2022                    1/2023            1/2024 (-31.8% yoy)

Average Sale Price:         $525,000         $550,000     $375,000

Median Sale Price:          $525,000          $550,000    $375,000

Average and Median prices were exactly the same yoy

Coops Sales:                    1/2022                    1/2023            1/2024

Average Sale Price:        $257,640                   $227,000         $324,500

Median Sale Price:          $270,000                   $230,000         $370,500 (+33.7% yoy)

Numbers courtesy of the Multiple Listing Service of Long Island (LiRealtor.com)

Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck.  For a 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: [email protected] or via https://WWW.Li-RealEstate.Com  My New digital business card/Bio/Reviews to save to your Cell/Ipad/Ipod or PC contacts and that you can purchase on:  https://onetapconnect.com/turnkeyrealestate-philraices

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