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Nassau County Absorption Rate

I’m sure you’ve heard that there is currently a scarcity of housing inventory virtually everywhere especially on Long Island in both Nassau and Suffolk Counties.  The statistic you possibly are NOT hearing about, however, is that there is a significant increase in activity, with many more homes going into contract than ever before.

So to put it a different way, inventory is DOWN while the pace of sales is UP!  When that happens, something called the “absorption rate” declines quite drastically.  The absorption rate is no more than the number of months to sell ALL the homes on the market. For example, if 100 homes were on the market and 100 homes sold over the past year, that would be a 12 month absorption rate.  If however, 100 homes were on the market and 200 homes sold over the past year, that would be a 6 month absorption rate.

A normal market, that is a market favoring neither the buyer nor the seller holds a 5 to 6 month supply of housing.  An absorption rate higher than 6 months is a “buyer’s market” while lower than 5 is a “seller’s market.”  You can see this quite plainly in the chart just below.

Absorption Rate

With a clearer understanding of what the absorption rate means in housing, I’m sure you can see from the following chart just how strong a seller’s market it is in Nassau County right now for single-family homes!

Chart of housing supply in Nassau County
Nassau County Absorption Rate Feb 2020

What this should mean if you are thinking of selling your Nassau County single-family home: The time to think is over! It is time to act and act swiftly before more sellers discover what you now know.  The absorption rate has never been lower than I can remember in my 21 years as a licensed real estate salesperson. And there’s just no telling how long this seller’s market is going to last.

Call or text me at 516-429-9399 if you would like to know about market conditions and the absorption rate in your town or what your home could bring in today’s market, without any obligation – of course!

Suffolk County Absorption Rate

I’m sure you’ve heard that there is currently a scarcity of housing inventory virtually everywhere especially on Long Island in both Nassau and Suffolk Counties.  The statistic you possibly are NOT hearing about, however, is that there is a significant increase in activity, with many more homes going into contract than ever before.

So to put it a different way, inventory is DOWN while the pace of sales is UP!  When that happens, something called the “absorption rate” declines quite drastically.  The absorption rate is no more than the number of months to sell ALL the homes on the market. For example, if 100 homes were on the market and 100 homes sold over the past year, that would be a 12 month absorption rate.  If however, 100 homes were on the market and 200 homes sold over the past year, that would be a 6 month absorption rate.

A normal market, that is a market favoring neither the buyer nor the seller holds a 5 to 6 month supply of housing.  An absorption rate higher than 6 months is a “buyer’s market” while lower than 5 is a “seller’s market.”  You can see this quite plainly in the chart just below.

Absorption Rate

With a clearer understanding of what the absorption rate means in housing, I’m sure you can see from the following chart just how strong a seller’s market it is in Suffolk County right now for single-family homes!

Suffolk County NY Absorption Rate
Suffolk County NY Absorption Rate Feb 2020

What this should mean if you are thinking of selling your Suffolk County single family home: The time to think is over! It is time to act and act swiftly before more sellers discover what you now know.  The absorption rate has never been lower than I can remember in my 21 years in real estate and there’s just no telling how long this seller’s market is going to last. Call me at 516-429-9399 if you would like to know about market conditions and the absorption rate in your town or what your home could bring in today’s market, without any obligation – of course!

Lindenhurst Home Sold

13 Maple Drive Lindenhurst, NY

4 Bedroom, 2 Bath Cape with 1 car attached garage waiting for you to move in. Newer kitchen with granite counters, SS kitchen appliances, gleaming wood floors. New Bath, Fresh carpeting in upstairs 2 bedrooms. Full Basement with Separate outside entrance and high ceiling waiting to be finished. Move-in ready.

First Showing 12/20/2019

Open House 12/28/2019

Full Contract  1/8/2020

Closed Escrow 2/20/2020

Asked $350,000

12 Offers including winning bid of $392,501.

Wouldn’t you want to see results like this when you sell?

Call or text me at 516-429-9399.

The Top States Americans Moved to in 2019 [INFOGRAPHIC]

The Top States Americans Moved to Last Year [INFOGRAPHIC] | Simplifying The Market The Top States Americans Moved to Last Year [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Americans are on the move, and the most recent Atlas Van Lines Migration Patterns Survey tracked the 2019 traffic flow from state-to-state.
  • Idaho held on to the top spot of ‘high inbound’ states for the second time since 2017, followed by Washington State.
  • New York was the country’s outbound move leader in 2019, a designation it most recently held in 2014.

Does “Aging in Place” Make the Most Sense?

Does “Aging in Place” Make the Most Sense? | Simplifying The Market A desire among many seniors is to “age in place.” According to the Senior Resource Guide, the term means,
“…that you will be remaining in your own home for the later years of your life; not moving into a smaller home, assisted living, or a retirement community etcetera.”
There is no doubt about it – there’s a comfort in staying in a home you’ve lived in for many years instead of moving to a totally new or unfamiliar environment. There is, however, new information that suggests this might not be the best option for everyone. The familiarity of your current home is the pro of aging in place, but the potential financial drawbacks to remodeling or renovating might actually be more costly than the long-term benefits. A recent report from the Joint Center for Housing Studies of Harvard University (JCHS) titled Housing America’s Older Adults explained,
“Given their high homeownership rates, most older adults live in single-family homes. Of the 24 million homeowners age 65 and over, fully 80 percent lived in detached single-family units…The majority of these homes are now at least 40 years old and therefore may present maintenance challenges for their owners.”
If you’re in this spot, 40 years ago you may have had a growing family. For that reason, you probably purchased a 4-bedroom Colonial on a large piece of property in a child-friendly neighborhood. It was a great choice for your family, and you still love that home. Today, your kids are likely grown and moved out, so you don’t need all of those bedrooms. Yard upkeep is probably very time consuming, too. You might be thinking about taking some equity out of your house and converting one of your bedrooms into a massive master bathroom, and maybe another room into an open-space reading nook. You might also be thinking about cutting back on lawn maintenance by installing a pool surrounded by beautiful paving stones. It all sounds wonderful, doesn’t it? For the short term, you may really enjoy the new upgrades, but you’ll still have to climb those stairs, pay to heat and cool a home that’s larger than what you need, and continue fixing all the things that start to go wrong with a 40-year-old home. Last month, in their Retirement Report, Kiplinger addressed the point,
“Renovations are just a part of what you need to make aging in place work for you. While it’s typically less expensive to remain in your home than to pay for assisted living, that doesn’t mean it’s a slam dunk to stay put. You’ll still have a long to-do list. Just one example: You need to plan ahead for how you will manage maintenance and care—for your home, and for yourself.”
So, at some point, the time may come when you decide to sell this house anyway. That can pose a big challenge if you’ve already taken cash value out of your home and used it to do the type of remodeling we mentioned above. Realistically, you may have inadvertently lowered the value of your home by doing things like reducing the number of bedrooms. The family moving into your neighborhood is probably similar to what your family was 40 years ago. They probably have young children, need the extra bedrooms, and may be nervous about the pool.

Bottom Line

Before you spend the money to remodel or renovate your current house so you can age in place, you may want to ask yourself if aging in place makes the most sense.  Why don't we get together to determine if it is truly your best option?  Making a move to a smaller home in the neighborhood might make the most sense.

How to Avoid a Gender Gap When Investing in the Housing Market

How to Avoid a Gender Gap When Investing in the Housing Market | Simplifying The Market When buying a home, we all want to feel like we’re making the right decision, paying a fair price, and making the best investment of our lives. According to a recent gender-based study, men and women can unknowingly walk away with very different financial outcomes when the deal closes. Thankfully, if you follow some simple ways to arm yourself with the information you need to prepare in advance, you’re more likely to feel like you’ve won when the keys to your new house are in your pocket. Kelly Shue and Paul Goldsmith-Pinkham of the Yale School of Management showed in their recent study The Gender Gap in Housing Returns, when single women invest in the housing market, they’re generally losing out compared to their male counterparts. The report explains,
“We find that single men earn one percentage point higher unlevered returns per year on housing investment relative to single women…The gender gap grows significantly larger after adjusting for mortgage borrowing: men earn 6 percentage points higher levered returns per year relative to women. Data on repeat sales reveal that women buy the same property for approximately 2% more and sell for 2% less.”
On National Public Radio (NPR), Kelly Shue elaborated by saying,
“Women are losing about $1,370 per year relative to men because they tend to buy the same house at a higher price and sell for a lower price.”
In the grand scheme of things, $1,370 a year could be as much as an entire month’s mortgage payment for many households in the United States.

How can you make sure this doesn’t happen to you?

The good news is, it doesn’t have to be this way for anyone, regardless of gender. Here are a few tips on how to make sure you’re prepped and ready to enter the housing market with your best foot forward.

1. Work with a Trusted Real Estate Professional

You need someone on your side who’s going to have your best interest in mind and support your unique homeownership goals. Hiring an agent who has a finger on the pulse of the market will make your buying experience an educated one. You need someone who’s going to tell you the truth, not just what they think you want to hear.

2. Understand the Homebuying Process

Know the key homebuying steps in advance, so you have the best context for how the process works from pre-approval to budgeting, inspections, and more. Have a price range in mind that you can realistically afford, too, so you’re ready to make an offer that positions you for success. Ask your agent questions along the way, and partner together so you feel confident and prepared at every turn.

3. Research the Current Market

Make sure you know the current trends and insights of the housing market as well. When you find a home that’s the perfect fit, determine what other homes are selling for in the neighborhood. These numbers can vary over time based on market conditions such as inventory, appreciation, and many other economic factors. A great agent will provide you with this information and guide you through every step from start to finish.

Bottom Line

When you have a trusted advisor on your side and you’re confident you know exactly what’s happening in the market, you’ll be in a great position to negotiate effectively. Let’s get together today to make sure you’re ready to win the homebuying deal.