Long Island Market Maintains Strength as Prices Rise to Record Levels; Sales Drop in the Hamptons and North Fork
Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases the third quarter 2019 Long Island, Hamptons and North Fork Sales Market Reports.The reports showed continued market strength on Long Island, while sales fell in the Hamptons and the North Fork.
One of the fastest moving markets in the New York Metro region, Long Island has seen the number of sales increase in three of the past four quarters. The median sales price has also been on the rise for twenty-six straight quarters, setting a record high in Q3 at $469,000. Listing inventory was up this quarter, but the total available inventory is at about half the level it was a decade ago, signaling the high buyer demand the market has been experiencing.
“The Long Island marketplace continues to chug along nicely. As the low interest rates balance out the negative effects of SALT, we are also fortunate for the diversity of markets and price points, the healthy job market and the strong local economy, which are all pillars of our vibrant housing market,”said Ann Conroy, President of the Long Island Division, Douglas Elliman. “Elliman's regional footprint, our national and global reach, our brand promise and our extraordinary agents are just a few of the many reasons why we continue to be the market leader in this busy region. In fact, we are poised to finish the year strongly, and to grow this momentum going into the New Year.”
In the Hamptons, reduced affordability continues to be a challenge resulting fromSALT tax law, slowing down sales and causing a steady increase in inventory. However, this negative effect was partially offset by the sharp drop in mortgage rates,as well as sellers’ expanded willingness to negotiate, which helped push the year-over-year median sales price up following seven quarters of declining price trend indicators.
“Right now in the Hamptons, it's all about pricing—at every level,” said Todd Bourgard, Douglas Elliman’sSenior Executive Regional Manager of Sales for the Hamptons. “Smart sellers are starting to understand that if they price a property properly, it will sell faster. As a result, we are extremely busy right now, and seeing a dramatic leap in multiple buyers on a single property, presenting full price offers or even above. Concurrently, both buyers and sellers are getting results at a fair market value.”
North Fork sales and prices softened this quarter, but the market share of East End sales was the second-largest seen in more than eleven years. Listing inventory also increased year-over-year for the fourth straight quarter.
“While the median sales price for North Fork declined this quarter, that followed a significant streak of gains,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and author of the reports. “The market remains faster than the average pace for the past decade which is an encouraging sign. This region overall has been very positively affected by dropping mortgage rates, so I think we will continue to see strong results on Long Island.”
LONG ISLAND SALES
Overview
“Price trend indicators reached new records.”
- Median sales price set new record high after twenty-sixth straight quarters without an annual decline
- Listing inventory rose sharply year over year for the third straight quarter
- Number of sales rose annually for the third time in the last four quarters
- The second-highest number of single-family sales in at least twelve years of tracking this metric
- Shortest condo average days on market recorded since at least 2007 when the metric was first recorded
- Luxury listing inventory rose annually for the seventh consecutive quarter, above the decade quarterly average
- Both luxury price trend indicators fell from the same period last year
- New luxury listing inventory grew at the same rate as total inventory
Key Trend Metrics (compared to same year ago period)
- Median sales price increased 4.2% to $469,000 [record]
- Average sales price increased 1.6% to $540,951
- Number of sales rose 1.3% to 8,415
- Days on market was 65, up from 63
- Listing discount was 2.8%, up from 2.6%
- Listing inventory rose 13.7% to 13,244
HAMPTONS SALES
Overview
“Sellers’ willingness to negotiate expanded.”
- The number of sales declined year over year for the seventh straight quarter
- Listing inventory continued to rise, reaching a thirteen-year high
- Median sales price rose year over year for the first time in seven quarters
- The lowest third quarter number of sales in eight years
- The number of condo sales rose year over year for the third time in four quarters
- Both single-family price trend indicators rose year over year together for the first time in three quarters
- The fewest number of sales at or above $5 million in six and a half years
- There have been nine straight quarters of annual increases in luxury listing inventory
- Most substantial luxury listing discount in more than four years
Key Trend Metrics (compared to same year ago period)
- Median sales price rose 5.5% to $857,000
- Average sales price edged up 0.6% to $1,375,772
- Number of sales fell 15.2% to 402
- Days on market was 139, up 13.1%
- Listing discount was 12.3%, up from 10.5%
- Listing inventory jumped 76.9 %to 2,571
NORTH FORK SALES
Overview
“North Fork saw the second-largest share of East End sales in more than eleven years.”
- Listing inventory increased year over year for the fourth straight quarter
- Median sales price declined for the first time in ten quarters
- By sales quintile, median sales price declined year over year across all segments
- North Fork sales represented the largest share of East End sales in more than eleven years
- Both condo price trend indicators rose year over year for the second straight quarter
- Single-family median sales price declined year over year for the second time in seven quarters
- The number of sales over $2 million fell sharply from the record set in the year-ago quarter
- Luxury listing inventory rose year over year for four straight quarters
- Luxury median sales price fell annually for the third time in four quarters
Key Tend Metrics (compared to same year ago period)
- Median sales price declined 1.9% to $629,000
- Average sales price fell 15.3% to $745,602
- Number of sales decreased 21.6% to 167
- Days on market was 97, down 15.7%
- Listing discount was 6.8%, down from 7.2%
- Listing inventory edged up 5.4% to 450
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
