Charles Rutenberg Realty, Inc. Says “It’s a Seller’s Market”
Agency’s Owner Says Continuation of Upward Price Trend Might Turn off Millennials
PLAINVIEW, NY — Now is a good time for the residential Real Estate market on Long Island and the surrounding areas to sell, based on recent median home sale prices and declines in housing inventory. Despite the favorable conditions, Joe Moshé, Broker/Owner, Charles Rutenberg Realty Inc., warns of a potential backlash of this trend, which could be deterring younger first-time buyers.
According to Long Island Real Housing Data, the median price for closings on Long Island during the month of October 2015 was $390,000, a 4.9 percent growth compared to October 2014. Nassau County reported a 4.1 percent increase and Suffolk County reported a 5.9 percent increase year-over-year, but the total number of available residential inventory has dropped by 5.6 percent since October 2014. 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 market, Mr. Moshé warns that this may also drive younger generations of prospective homebuyers toward rental properties, meaning a decline in the number of first-time homebuyers. The high prices and low availability, combined with lack of affordability and slow wage growth, could deter many buyers, leaving many homes sitting on the market longer.
“The number of young adults living at home with their parents has increased since last year and those numbers are mostly associated to the decline in young adult marriages since the recession,” Mr. Moshé says. “The cultural norms are shifting, the housing market is struggling to keep up and starter homes are taking the biggest hit.”
For those selling starter homes, Mr. Moshé recommends that sellers should update their kitchens, which is the top area addressed by homebuyers. According to the 2015 Remodeling Magazine’s Annual Cost vs. Values Report, the average cost of a minor kitchen upgrade (new cabinets, appliances, countertops, sinks, faucets, paint and hardware) is $19,226 and has a national average payback of 79.3 percent.
“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.”
Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with nearly 1,000 Agents on Long Island, Queens, Westchester, and the Bronx. For more information, visit www.crrli.com.
About Charles Rutenberg Realty
Founded in 2006, by Joseph Moshé, Charles Rutenberg in New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with approximately 1,000 Agents on Long Island, Brooklyn, Queens, and Westchester. Charles Rutenberg in New York specializes in Residential and Commercial properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. The Agency is a member of the Long Island Board of Realtors, the Hudson Gateway Association of Realtors, the Hamptons and North Fork Realtors Association and Brooklyn New York Multiple Listing Services. Among the 1,900 independent Real Estate offices represented by LIBOR and Multiple Listing Services (MLS), Charles Rutenberg Realty, Inc. has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg in New York is headquartered in Plainview, New York, with branch offices in Queens, Bronx, Westchester, Nassau, and Suffolk Counties. Other Charles Rutenberg offices are located in Clearwater, Orlando, and Fort Lauderdale, Florida, and Chicago, Illinois. For more information, visit www.crrli.com.