Mortgage rates continue to climb, inventory remains tight and the world of Long Island real estate continues to take us on a tumultuous ride. Rates, prices, purchasing power, they all have an affect on buyers and sellers alike—as well as on our gathering of real estate insiders and experts as they discuss what factors will have the biggest impact on the Long Island market this fall.
Associate Real Estate Broker, Daniel Gale Sotheby’s International Realty
Interest rates could lower a buyer’s purchasing power—therefore this will be the biggest factor this fall as we all will wait to see what happens with the rates. Very high rents will also come into play this fall as many renters will be forced into the housing market.
CEO, Maltz Auctions
There really are just two factors in my opinion: inventory and interest rates.
Associate Real Estate Broker & Certified Buyer Representative,
Daniel Gale Sotheby’s International Realty
The biggest factors having an impact on our Long Island real estate market are the supply of quality inventory as well as the outlook buyers have about the ever-evolving interest rates. The beauty of living on Long Island is that you can go from one town to another and have a completely different vibe and housing-market environment. Managing those expectations depending on the town and county will play a big role in navigating pricing and how to negotiate an offer.
Licensed Real Estate Person, RE/MAX Integrity Leaders
Two of the biggest impacts on the market are interest rates and inventory. The fluctuation of interest rates and the number of homes for sale can greatly affect a buyer’s purchasing power and the price a seller will get for their home.
Licensed Real Estate Salesperson, Signature Premier Properties
Buyer fatigue will have the biggest impact. Those that kept losing out on the bidding wars we saw in earlier markets are now faced with rising interest rates and saw their purchase power decrease. For first-time home buyers, that’s enough to make you want to throw in the towel. And sellers who are more realistic with their pricing are still seeing multiple offer situations.
Sandi M. Polinsky
Broker/Owner, Goldilocks Real Estate
The greatest impact on our market for fall 2022 is the instability of mortgage interest rates. The threat of inflation, including the threat of real estate taxes continuing to rise—coupled with increases in gas, oil, electric and water bills—can cause uncertainty and fear and are crippling people from making changes. As mortgage rates rise, coupled with increasing taxes, a $500,00 buyer six months ago may only qualify for a $450,000 purchase today.
Licensed Real Estate Salesperson, Serhant
Presentation is everything and real estate agents are going to have to put forth more effort in order to get sellers top dollar for their home, and to make sure they are standing out in the competition. Real estate agents who have the capacity to innovate through media and content creation are going to be the ones who are called upon for the job.