Long Island sales reach new highs with inventory at record lows

Available homes for sale dropped 34% YOY in Q1 2021

Tri-State /
Apr.April 27, 2021 03:05 PM
(iStock)

(iStock)

Sales activity in Long Island was through the roof in the first quarter of 2021, spurred in part by the lowest number of homes for sale in years.

The number of available homes plummeted by 33.6 percent year-over-year, according to the latest report by Douglas Elliman. That’s a 14.2 percent decline from the previous quarter, and the lowest the island has seen in the nearly 18 years the appraisal firm Miller Samuel, which prepares the report, has tracked sales data.

Homes for sale were already declining pre-Covid, but the number of listings decreased quickly as homes sold faster than new ones became available, said Jonathan Miller. Sellers were reluctant to have strangers enter their homes due to pandemic safety concerns.

Meanwhile, the number of closed sales surged by 35.3 percent year-over-year, the largest rate in 11 years. The median sale price rose year-over-year for the fourth quarter in a row to $525,000, the highest on record.

On the luxury side of things, the median sale price jumped 24.5 percent to $1.2 million, the second highest on record after the previous quarter’s median price of nearly $1.3 million.

Much like the overall market, the high-end market is either setting or flirting with record median price levels as inventory falls, Miller said. The luxury market saw available homes decrease by 38.7 percent year-over-year, its second lowest on record.

These kinds of changes are shifting the pace of the market, said Miller.

According to Miller Samuel’s report, it would take 2.1 months to sell all available listings at the current pace of sales. That’s an increase from the previous quarter’s all-time low of 1.9 months — and the rise indicates that the market is slowing down.

And nearly 40 percent of closings sold above the last asking price, a sign that bidding wars are still happening, Miller said.

“Clearly these conditions at this intensity are not sustainable, but next quarter is the biggest quarter of the year,” said Miller, suggesting that the market could see more records during the spring months.

While he does not anticipate an influx in inventory across the market as a whole anytime soon, there may be some minor improvements. As Covid-19 vaccines continue to have rapid distribution, he said he expects to see some uptick in supply as sellers become more willing to open their doors to strangers looking for homes, though that might not be enough to meet demand.






    Related Articles

    arrow_forward_ios
    Hamptons businesses desperate for workers
    Hamptons businesses desperate for workers
    Hamptons businesses desperate for workers
    700 Meadow Lane
    Serious buyers only: The 10 priciest new Hamptons listings
    Serious buyers only: The 10 priciest new Hamptons listings
    Judith Nathan, Rudy Giuliani and 353 Lopers Path in Water Mill (Getty, Google Maps)
    Rudy Giuliani’s ex-wife sells Hampton home for $5M
    Rudy Giuliani’s ex-wife sells Hampton home for $5M
    Clockwise from top left: Wildflower's Adam, Gordon, a rendering of the JFK Logistics Center, Wildflower's Raphael De Niro and Amazon CEO Jeff Bezos (Wildflower, Getty)
    Amazon leases massive warehouse near JFK Airport
    Amazon leases massive warehouse near JFK Airport
    Stacey Bronfman and her Norman Jaffe house. (Getty, Douglas Elliman)
    Stacey Bronfman sells Norman Jaffe-designed Bridgehampton home
    Stacey Bronfman sells Norman Jaffe-designed Bridgehampton home
    New York’s medical marijuana industry is expecting a boom in business. (Getty)
    Medical marijuana company bags Long Island grow site
    Medical marijuana company bags Long Island grow site
    40 Meadow Lane, Nir Meir and Robert Kraft (Google Maps, HFZ, Getty)
    Patriots owner Robert Kraft buys Nir Meir’s Hamptons home for $43M
    Patriots owner Robert Kraft buys Nir Meir’s Hamptons home for $43M
    Aerial view of Peninsula Golf Club in Oyster Bay and at right, Nassau County Executive Laura Curran (Google Maps, Getty)
    Nassau County will oppose any effort to redevelop Oyster Bay golf course
    Nassau County will oppose any effort to redevelop Oyster Bay golf course
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...