Housing prices on Long Island are very much like the autumn leaves—while some remain up there, seeming unwilling to drop, the overall trend has seen them continue to fall in recent weeks, and that downward movement will, experts say, continue. With an eye on foliage and falling home prices, our gathering of Long Island real estate experts and insiders reveal some of the biggest challenges facing buyers and sellers alike as we head toward the holiday season and the end of the year.
Associate Real Estate Broker, Daniel Gale Sotheby’s International Realty
The biggest challenge facing buyers will be adjusting to what they can afford as the interest rates increase. They may not have the purchasing power to buy that totally done, move-in house that they want. For sellers it will be accepting that they will not have multiple offers over their asking price, lines around the block at open houses, and bidding wars. They should price the home to sell right from the start and not reach for the moon. To quote Bob Dylan, “times, they are a changin.”
CEO, Maltz Auctions
In my opinion, the biggest challenge for buyers will be affordability as interest rates rise. For sellers, I believe that unfortunately there will be an increasing number of buyers who are backing out of deals as interest rates rise because they haven’t locked in an acceptable rate.
Associate Real Estate Broker & Certified Buyer Representative, Daniel Gale Sotheby’s International Realty
The biggest challenge facing buyers and sellers currently are the increased interest rates and the unknown of which direction they will go. For many buyers, not knowing what can happen between the time buyers are searching and the actual time they lock in their interest rate leaves a good amount of room for the unknown.
Kerri Passamenti, Licensed Real Estate Salesperson, RE/MAX Integrity Leaders
The biggest challenge for both sellers and buyers is adjusting their mindset and expectations to a shifting market. As a seller, it’s still a good time to sell, but understand that your home may be on the market slightly longer. As a buyer, less competition will make it easier to find a home, but keep in mind, a properly priced home will not sell for under asking.
Miriam Hagendorn, Licensed Real Estate Salesperson, Serhant
The biggest challenge for sellers is themselves and if they believe the home could be worth higher than what its market value is. Be sure to follow current market trends, within a few months, to find that perfect price point. It’s also important for agents to set proper expectations when it comes to pricing their sellers’ homes. Buyers are going to have to face dealing with sellers who think their home is worth more.
Cindy Grimm, Licensed Real Estate Salesperson, Signature Premier Properties
Inventory! For buyers, it’s still low, and for sellers who want to stay on Long Island, finding a home while you’re selling can be very stressful. That’s why it’s so important to make sure you have a real estate agent who knows the market and can maneuver the winding road to the closing table and get you to your happy place!