Despite how expensive it is on a monthly basis, Long Islanders still need somewhere to live. The buyers that got priced out of the market, have been pushed to the rental market. This has driven up the prices of rentals, with some areas seeing monthly increases of 20-30%…which even further increases the value of owning a home over renting.

Right now, there is still not enough inventory to satisfy the demand of buyers. With a minor decrease in interest rates over the past few weeks, properly priced homes are still seeing multiple offers, over asking, within a week of hitting the market. 

The healthiest reason for any market to rise is due to supply and demand. Fear mongering has been causing a mind set in buyers that the housing market will come down so they should sit back and wait. The reality is, the longer a buyer waits, the more expensive it seems to get on a monthly basis. If interest rates go higher, it leaves less buyers able to afford the asset class. If interest rates come down, those on the sidelines will flood right back into the market causing prices to rise even higher. 

The best solution is for buyers, and would be sellers to get more proactive than ever in sitting down with loan officers and agents. Buyers need to know what they can afford, and how they can afford it. While sellers need to know their walk-away numbers and cost to purchase since supply and demand is still in their favor. Over the recent years, there have been far more buyers than sellers, which has been the driving force for bidding wars and surging prices – leaving buyers begging for more inventory. 

Although the increase in interest rates have priced some buyers out of the market, others are still very much in need of housing, as their search continues. Due to increased rates, purchasing a home has become even more expensive on a monthly basis. Since many sellers become buyers, this has made more homeowners reluctant to list their homes, out of fear of having to purchase.