Charles Rutenberg Realty, Inc. Says
“It’s a Seller’s Market”
Agency’s Owner Examines the July 2015 Long Island Housing Data

Long Island and the surrounding areas are back in the seller’s market, according to the recent increases in closed median home prices and declines in residential housing inventory. Despite the favorable conditions, Joe Moshé, Broker/Owner, Charles Rutenberg Realty Inc., warns of a potential backlash of this market trend deterring first-time buyers.

According to Long Island Real Housing Data, the median prices for closings on Long Island during the month of July 2015 was $400,000, a 5.3 percent growth compared to July 2014. Nassau County reported a 4.9 percent increase and Suffolk County reported a 9.1 increase year over year. The total number of available residential inventory dropped by 3.4 percent from last July. As homes continue to be purchased in large numbers, housing market prices will continue an upward trend.

Although these numbers indicate a favorable economy and a competitive housing, Mr. Moshé warns that this may also drive younger generations of prospective homebuyers toward rental properties, meaning a decline in the number of valuable first-time homebuyers. The high prices and low availability in combination of declining affordability and slow wage growth could deter many buyers, leaving many homes sitting on the market longer.

For those selling starter homes, Mr. Moshé recommends that sellers should update their kitchens, which is the top area addressed by homebuyers.

“Most first-time purchasers are young, work full-time and have an active social life, which deters them from buying homes that would require major renovations that may cut into their free time,” Mr. Moshé says. “A modern kitchen will attract those millennial homebuyers who feel this part of the house will require little to no maintenance.”

According to the 2015 Remodeling Magazine’s Annual Cost vs. Values Report, the average cost of a minor kitchen upgrade (new cabinet doors, appliances, countertops, sinks, faucets, paint and hardware) is $19,226 and has a national average payback of 79.3 percent.