Annual Report RESILIENCE IN THE TRANSITIONAL

New year, new market! With a new year comes new goals, new opportunities, and new challenges. While 2021 was a year for the history books for the housing sector, 2022 can best be described as a unique yet transitional year for real estate.

2022 began exactly where 2021 left off; historically low mortgage rates, fierce competition between buyers, homes flying off the market at a record pace, and an all-time low inventory shortage caused prices to soar. As we moved into the second half of the year, prices continued to rise, but the formerly red-hot market began to cool down. Closed and pending sales started declining, primarily due to historic and unprecedented mortgage rate spikes. 30-year fixed rate mortgages went from 3.2% in January to almost 7.5% in late October, the steepest and fastest climb of mortgage rates ever, which threw cold water on the housing demand boom and stalled the pace of buyer activity. Many of the homeowners who had refinanced when rates were low were reluctant to sell and give up their low rates, and buyers were left with less purchasing power and an even smaller pool of homes in their price range. Prices continued to rise throughout the year, but the increase slowed, reflecting the cautious approach of many buyers.

Despite the challenges, the Long Island real estate market remained strong in 2022. With our beautiful beaches, vibrant communities, and access to excellent schools, Long Island continued to attract a steady stream of buyers seeking a high quality of life. Even with fewer home sales on Long Island last year, the 2022 closed median sales price in Nassau County rose to $679,000, representing a 6.1% increase from 2021, with sellers receiving, on average, 98.4% of their asking price. There were 13,306 closed sales in Nassau, which decreased by 16.6% compared to last year. By the end of 2022, there was a 2.9-month supply of inventory, a total of 2,194 homes available for sale.

Over in Suffolk County, the closed median sales price jumped to $550,000, an increase of 8.9% from the previous year, and sellers received on average 101.1% of the list price. The number of closed sales fell from 19,367 in 2021 to 16,257 in 2022, a 16.1% decline. There is currently a 2.7-month supply of homes for sale with 2,286 units available based on data taken from OneKey MLS Long Island 2022 Annual Housing Data Report.

Even with the market in a period of transition, Signature Premier Properties ended 2022 with a bang! We rounded out the year as the #1 Company in Suffolk County for closed sales, properties under contract, and homes listed for sale in 2022. While no one can be certain what the 2023 housing market will bring, there is a renewed sense of optimism as we advance into the spring market. Whether you’re looking to buy or sell, the best decision you can make is to start your journey with a Signature Premier Properties Agent who can guide you every step of the way!